Tameer Micro Finance Bank will begin financing facilities from this December to low income people for construction of houses in Taiser Town, Lyari Settlement Project and other similar schemes, it was learnt on Wednesday.
This decision was taken in a meeting held here at the Governor House to finalise the modalities of financing low-income housing projects and funding facilities for small businesses. Sindh Governor Dr Ishratul Ibad was in the chair.
Giving details of different programmes to help low-income people, chief of the TMFB Nadeem Hussein Rizvi said that in addition to housing finance up to Rs 100,000 his institution would also provide financing up to Rs 100,000 to those wishing to begin entrepreneurial activities with small funds or are desirous of expanding their existing businesses.
He said that housing finance, up to Rs 100,000, for new construction would be repayable in five years, and maximum Rs 25,000 would be provided for the repair of houses, which is repayable in one year. The micro finance for entrepreneurial activities, up to Rs 100,000, would be repayable in one year. The mark-up on these finances would be 15 percent.
This financing initiative would also facilitate people in opening account/saving accounts with limited funds.
The TMFB has been set up with $10 million paid up capital. Experts of international repute in financial management and banking are looking after the functioning of this institution.
Tameer Micro Finance Bank has support from the American Overseas Private Investment Capital (Opic) and International Finance Corporation (IFC). Rizvi said that his institution would actively work to support Lyari Resettlement Project, Taisar Housing project and similar other projects that are for the benefit of low-income and homeless people.
Ibad on the occasion said that such banks were needed to support the low-income people who do not usually get support from banks.
The Sindh governor said that the offer of assistance to low income people in constructing houses would also help the government in its efforts to accommodate those people who could not construct houses due to soaring prices of land and construction material.
He said the initiative of the TMFB would also create banking culture among the poor.