Islamabad: The State of Bank of Pakistan (SBP) on Monday announced that it had extended the loan limit for low-cost housing finance, a news source reported. The central bank extended the limit of housing finance and microenterprise loans to PKR 3 million from the existing PKR 1 million ceiling.
The announcement comes as part of SBP’s effort aimed at promoting low-cost housing finance in the country. In a similar move, the bank also increased the maximum size of general loans to PKR 350,000 from PKR 150,000. Furthermore, it enhanced the annual income eligibility to obtain general and housing loans to PKR 1.2 million and PKR 1.5 million, respectively.
SBP stated that it increased the limit for housing finance since the existing one was insufficient for promoting low-cost housing finance via Microfinance Banks. The central bank has also expanded its relief package – featuring deferment of principal and restructuring of microfinance loans – for these banks to help them overcome the impact of the ongoing COVID-19 pandemic.