What is the Eligibility Criteria to Apply for Home Loans in Pakistan?
The Helping hand of the banks for the Construction of your Sanctuary
Have you ever dreamed of having a house of your own where you would be under no obligations to follow certain fixed rules? Have you ever dreamed to cut off those shackles binding you and live peacefully in your own humble abode? Have you ever considered in loaning a certain amount from the bank for your home but then feared about being enslaved by the banks or felt the necessity to get advice from any expert? If you happen to possess similar bees buzzing in your bonnet, then here is the solution for you.
In order to secure a loan form a bank you have to be eligible for it. The eligibility criteria usually revolve around your salary and your service duration and the fact that you are a Pakistani. Secondly the amount you want to loan and the duration you can pay off the loaned amount. The third factor remains as the debt to equity ratio. Since various banks have various standards according to which they operate, providing people with services which vary from bank to bank similarly banks do have different conditions when it comes to lending money.
Below is some useful information which you can consult before procuring a loan from any bank.
Standard Charted Bank
| Description | House Purchase | House renovation |
| Minimum salary | PKR 30,000 | PKR 20,000 |
| Service Duration | 1 year | 1 year |
| Financing Amount | Up to 30 million | Up to 3 million |
| Repayment tenor | 1 to 20 years | 1 to 10 years |
| Minimum age of the Borrower | Greater than or equal to 25 years | Greater than or equal to 25 years |
Habib Bank Limited
| Description | Outright Purchase | Home Improvement/ Renovation |
| Loan tenure | 3 years to 20 years | 3 years to 20 years |
| Loan amount | Rs. 300,000 – Rs. 15,000,000 | Rs. 300,000 – Rs. 5,000,000 |
| Maximum financing amount | 85% | 70% |
| Service Duration | 1 year for salaried and 2 years for businessmen | 1 year for salaried and 2 years for businessmen |
| Property lease (years remaining at the time of loan maturity) | 5 years | 5 years |
Bank Alfalah
| Description | House Purchase | House renovation |
| Minimum salary | PKR 50,000 | 50,000 |
| Service Duration | 2 years for permanent and 3 years for contractual employees | 2 years for permanent and 3 years for contractual employees |
| Financing Amount | Greater than or equal to 2 million | 100% of the construction cost |
| Repayment tenor | 3 to 25 years | 3 to 25 years |
| Age eligibility | 23 to 60 years | 23 to 60 years |
National bank Of Pakistan
| Description | Financing Amount | Financing Period | Debt to Equity |
| Home Purchase | Up to 35 Million | 3 to 20 Years | 85:15 (Maximum) |
| Home Construction | Up to 35 Million | 3 to 20 Years | 85:15 (Maximum) |
| Home Renovation | Up to 15 Million | 3 to 15 Years | 80:20 (Maximum) |
| Land Purchase | Up to 35 Million | 3 to 20 Years | 80:20 (Maximum) |
The eligibility criteria include the borrower being a resident of Pakistan and aged between 21 to 65 years. He must be a salaried individual or a businessman and if salaried the minimum salary should be PKR5000 for Govt. Employees, PKR10,000 for other salaried persons and PKR 15,000 for businessmen or self-employed. The service duration stands at 2 years for salaries and 3 years for business categories.
Mentioned above are the updated details from banks holding out a helping hand to people, who intend to buy a house for their own. It is to be noted that Interest is haram (prohibited) in Islam and getting involved in such transactions is considered equally bad. With the inflation prevailing throughout our country and the merger salaries offered by the companies, even the religious are sometimes found to be getting along with the things prohibited.
