State Bank issues circular on Islamic financing for low-cost housing to all banks

Karachi: The State Bank of Pakistan (SBP) has announced its Islamic financing for low-cost housing in Pakistan. The circular has been issued to all banks.

As per circular, SBP is introducing a Mudarabah-based “Islamic Financing Facility for Low Cost Housing for Special Segments.” The targeted participation shall pertain to all banks, Islamic Banking Institutions (IBIs) and Islamic DFIs; collectively referred to as Partici­pating Islamic Financial Institutions (PIFIs).

A target amount of 2.7 million has been set for the scheme which can lend benefit to widows, children of martyrs, transgender, special persons and person in areas that are severely affected by terrorism.

The Mudarabah investment will make itself accessible for up to 100 percent of the amount financed to eligible customers. The PIFIs may avail the facility by submitting their requests for allocation and SBP will evaluate the assignment of this facility as per their internal criteria.

The request of sanction of limits for the current fiscal year may be submitted within the 30 days of issuance of this circular.

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