Business as Usual

In BAU, refinance loan/financing is provided against existing mortgage loans portfolio. This allows FIs to leverage their mortgage portfolio to generate new loans. Long term fix rate provides liquidity to the FIs and enable them to generate fixed rate long term housing finance loans.

Pre-finance Loan for Middle Income Group

FIs are required to generate housing loans which meets the eligibility criteria for middle income segment within pre-finance tenure on following parameters.

Individual Income: PKR 200,000
Household Income: PKR 250,000
Property Value: PKR 14,000,000
Loan Amount: PKR 11,900,000

Pre-finance Loan for Low Income Group

FIs are required to generate housing loans which meets the eligibility criteria for low income segment within pre-finance tenure on following parameters.

Individual Income: PKR 100,000
Household Income: PKR 140,000
Property Value: PKR 6,000,000
Loan Amount: PKR 5,000,000

Benefits of PMRC Financing

  • Reduced Maturity mismatch – Improved ALM.
  • Reduced Market risk – Fixed rate Loans.
  • Stable source of funding.
  • Reduced Credit Risk- Improved Affordability of Consumer.
  • Borrowings from PMRC are exempted from maintenance/calculation of CRR/SLR
  • Exemption in general provisioning for portfolio refinancing loans from PMRC.
  • Reduced Risk Weightage for PMRC refinanced mortgages.
  • Exemption from real estate lending limits – more exposure for Housing Finance.
  • PMRC’s funding will increase housing finance portfolio of banks thereby creating long term funding source.
  • Banks can cross sell different products to new customers to increase profitability.
  • Leveraging existing portfolio for additional lending.
  • Fax
  • +92(21)35633365
  • Registerd Address
  • Finance & Trade Center, 4th Floor, Block-A, Shahrah-e-Faisal, Karachi -74400, Pakistan.

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