Mortgage/Housing Finance Guarantee Facility (hereinafter referred to as “MGF”) for affordable housing. The MGF only covers Housing Finance Facilities approved under the MPMG scheme under IH&SMEFD Circular No. 03 of 2021 dated March 25, 2021 and IH&SMEFD Circular Letter No. 10 of 2022 dated July 25, 2022 and SBP correspondence with banks/DFIs/MFBs for extension of the disbursement date. Any other Housing Finance Facilities extended against any new/ modified Scheme shall not be covered for guarantee under this Scheme.
The overall Islamic Guarantee scheme is based on the concept of Kafalah/Guarantee and Conditional Tabarru’/Gift. Under this Guarantee & Conditional Tabarru’ arrangement where the Trust is providing risk coverage to the qualified Islamic Participating Financial Institutions (IPFIs) incurring/classifying loss (of profit/rental & unit financing amount) as per Prudential Regulations in respect of their eligible low-cost housing portfolio.
