There’s nothing ‘affordable’ about the affordable housing finance sch

First of all, has anybody ever calculated the monthly instalments required to pay back the loans that are being provided by private banks for the naya pakistan housing programme (nphp)? This is a genuine question which i believe needs to be addressed or, at the very least, discussed among common folks who happen to be the biggest beneficiaries of said housing project. That being said, many private banks have announced housing finance on ‘extremely low markup rates’ for low-salaried individuals.
The extremely low markup rate might sound promising to a person whose monthly earnings lie somewhere between 25,000 and 30,000. But what about the monthly instalments? How much does he have to pay to the bank in terms of monthly payments? 5k, 10k, 15, 20k or more? Correct me if i’m wrong but i find these so-called affordable house financing schemes nothing short of bull****. How can you say that these ‘facilities’ are for the non-privileged class when you are taking several thousands of rupees from a person’s account whose monthly earnings amount to a mere 25,000.
Also, do keep in mind that the prices of essential items have soared since tabdeeli sarkar came into power. People are working their butts off to keep the circle running yet they are hardly able to make ends meet. What good does a low markup rate do if the borrower can’t even afford to pay the monthly instalments?
Looking forward to hearing your thoughts on my rant.


Generaly speaking the main benefit for any mortgage/house finance schemes for people would be to build equity by owning their own property which otherwise wouldnt be possible due to alternative scenario of thousands of rupees of their income being wasted on rental accomodation. If the markup rates monthly installments workout similar or even slightly higher then the individuals monthly rent its still way better to pay into a mortgage as oppose to paying rent. So in my humble opinion yes it does sound like a reasonable facility for those salaried people that are usualy stuck in a longterm rental cycle with no end in sight. Might help lots of people by giving them the opportunity to get on the property ladder for the first time.

The scheme is not for people with 25,000-30,000 salary per month, but for people who pay rent ranging from 25,000-30,000 per month.

Abdul Raheem sb, where did you read that? Please provide the link.

For those giving 25,000-30,000 rent per months may have remaining salary only for other essentials and utilities. It will only become practical to get rid of rent if one can afford rent + installment + essentials/utilities per month or in other case govt offers ready made homes where one can shift immediately and start give rent amount as installment.

I think Slick sab made a good point. It is the best option for people who will be perpetually stuck in a cycle of rent otherwise.

However, it is true that the government's claims do not seem to be really materializing under this. They did claim that the rental payments/instalments will be that small. One can only hope that NAPHDA projects are much cheaper than non-NAPHDA projects otherwise the people who are actually currently living 4, 5 people to a room would still not have a home.

Moreover, under non-NAPHDA projects, if you procure 3 million loan, it cannot be paid in PKR 25,000 per month in even 20 years. At approximately 11% profit rate, you will be paying more that 31,000 rupees per month for 20 years. Remember you will be paying back minimum 6.8 million.

Okay, I agree with all the points above and would like to add that this is one of the best opportunities I have gotten during my last 11 years of professional career to own a home.

You have to understand the concept of tvm to fully grasp what Mr. Slick just said here.

The installments can be calculated by a calculator which is available on every bank branch.

If you want me to tell you the installments you would owe, kindly tell me your tenure, amount of bank financing and I would tell your monthly installments here

Taking this opportunity, I would like to highlight a key point that not many places in capital can be covered under this scheme. Two reasons. 1) the scheme is not financing plots in private societies like bahria. 2) the cost of land is too much in capital.

As soon as you leave the capital, prices fall drastically.

Can any honourable member advice where to buy 5 Marla plot in the range of 45-55 lacs in capital?


Nawaz Malik sb, the government has announced said financing facility for both NAPHDA and non-NAPHDA projects. I believe construction in private schemes falls under the non-NAPHDA category. Would you please elaborate on the ‘scheme is not financing plots in private societies like Bahria’ point of yours?

Private societies like bahria which are under the ownership of a single person are not being financed by banks. It has always been banks rule that they won't finacne private societies or the societies where ownership of the land stays with the society.

If you have different info please share with me because I have also been handicapped by this.

On the other hand if you can get a registry in the societies at your name then you can also get financing

Nawaz sb, one of my friends works in the bank. According to him, banks are also providing home loans for properties situated in private societies. These financing schemes are categorized under non-NAPDHDA projects.

Wasif Ali sb, (as per my knowledge) Allied Bank does not allow borrowers to rent out or sell properties constructed under the NPHP loan scheme for the first five years. Don’t know if other banks are following the same criteria.

@Real estate . Can you provide me with his phone number

Nawaz sb, I am sorry, I can’t do that but if you have any more questions, you can ask here and I will try and get you the answer.

I was told that Bahria town phase 8 is not being financed by this scheme. Can you please ask your acquaintance regarding this

Nawaz sb, for that, you’ll have to get in touch with the representatives of local banks.