Finance Division has approved Rs 500 million for loan write-off of 1,994 widow borrowers of House Building Finance Company Limited (HBFCL). Sources told Business Recorder that the HBFCL has approved 229 cases out of the total identified 1,994 eligible beneficiaries in the first tranche for the scheme designed to provide relief to the widow borrowers of HBFCL by writing off their outstanding loans.
After receiving verification of the claims, Finance Division will release funds against verified claims to HBFCL on a quarterly basis instead of releasing total amount of Rs 500 million in one go.
The loan write-off scheme of widow borrowers of HBFC was announced by Finance Minister, Ishaq Dar, in his budget speech 2017-18 similar to the one announced by his government in 1999. Pakistan Muslim League (N) government in 1999 announced a scheme to pay off the HBFC loans of widows to the tune of Rs 350,000 and the limit in the present scheme was increased to Rs 500,000 and it will be applicable for only those widows who have not remarried.
Subsequent to the finance minister''s announcement, a detailed plan was chalked out by the HBFCL titled "relief to widow borrowers of HBFCL" for writing-off their outstanding loans on lines identical to those of previously launched scheme and requested for provision of Rs 800 million. Sources added that total identified beneficiaries are 1,994 with Rs 539 million estimated amount to be written off. The relief could be availed from September 01, 2017 to March 31, 2018.
The finance secretary, sources further stated, has approved an allocation of Rs 500 million in favour of the scheme for the ongoing fiscal year. The eligibility criteria of widow borrowers of HBFC included; (a) those who themselves or their deceased husbands had availed loans; (b) who did not re-marry after the death of their husbands; (c) who did not sell the mortgaged property and; (d) who had availed insurance claims will be entitled for write-off of the remaining balance.
Under the scheme, the entire outstanding balances including principal amount, rent, insurance premium and other charges will be eligible for write-off if the outstanding principal amount is not more than Rs 500,000 as of June 30, 2017; (b) and the above concession for write-off of outstanding balance will include borrowers and partners of all the loan/finance/investment schemes; (c) the widows who have already availed any relief under various relief packages offered by HBFCL from time to time and still remain any balance outstanding against them, shall also be entitled for write-off under this scheme.