Islamabad: The Ministry of Housing & Works recently signed an agreement with Akhuwat Islamic Micro Finance to provide interest-free loans for the repair and construction of low-cost houses across the country, a news source reported. The deal was signed by Akhuwat CEO Dr Amjad Saqib and Secretary Housing and Works Dr Imran Zaib Khan.
It was decided that loans of up to PKR 1 million would be issued to applicants who will be required to return these loans within 24 to 60 months on easy instalments. The government has stated that it will give Akhuwat PKR 5 billion for the use and distribution of small loans to people across the country. The body was chosen using Public Procurement Regulatory Authority (PPRA) rules.
Further, the officials concerned stated that the Naya Pakistan Housing Programme (NPHP) would be an important initiative in aiding the dispersal of these loans. There is no processing fee for the loan application. These loans can be used either to purchase or build a house or to construct new rooms in existing houses and cover repair costs. Akhuwat will only give out small interest-free loans to low-income households.