Deputy Governor State Bank of Pakistan (SBP) Sima Kamil says the trend of borrowing for housing has accelerated.

Talking to local media, Sima Kamil said that banks have approved loans of Rs 15 billion in six months and earlier loan terms were difficult but now they have been eased.

She said that a formula has been worked out with the banks for those who do not have a regular income. Kamil further said that people should go to the nearest bank for a loan and it is not necessary to have an account for it, just apply, then the bank has to respond to this application within 30 days.

The central bank has announced a number of facilities to enhance the housing sector in sector. Days ago, the State Bank of Pakistan (SBP) announced a mechanism for payment of markup subsidy for housing finance for the banks/DFIs working as Executing Agencies (EAs).

Under the mechanism, the SBP has mentioned that in case of a loan becoming non-performing, no markup subsidy will be paid to banks.

In order to support the housing and construction sector, the government of Pakistan is giving markup subsidies to provide concessional housing finance thereby promoting homeownership.