Karachi: The portfolio of construction loans has finally increased from Rs 148 billion in June 2020 to Rs 202 billion by March 2021.
The State Bank of Pakistan said that the pace of housing and construction finance is increasing, the portfolio of housing and construction loans of banks has finally increased from Rs 148 billion in June 2020 to Rs 202 billion by March 2021. This represents a growth of Rs 54 billion or 36 per cent over the first nine months or three quarters of FY21, while it was frozen in the previous quarter.
In the history of Pakistan, housing and construction loans have never seen such growth in such a short period of time. Banks are expected to significantly increase the total lending to the housing and construction sector, as mortgage finance activity under the My Pakistan My Home scheme is on the rise.
Under the scheme, till April 20, 2021, banks have received applications from the public for loans of more than Rs 52 billion. Of these, the bank has approved financing of more than Rs 15 billion to the applicants, while the remaining applications are in various stages of scrutiny and approval.