How to get a ‘Home Loan’ in Pakistan: List of banks, installments, complete information

To help you do the same and ease the research process, we bring you a list of banks providing home loans in Pakistan.

Having your own home is so much better than living in a rented space. You don’t have to worry about the impending rent cycle, privacy and comfort invasion, or the high utility expenses. Your home is your safe space for whatever you want to do.

However, it’s not easy to buy your own home in Pakistan. With inflation on the rise in the country, financing a house seems more and more impossible. This explains why several people are considering the possibility of taking out a home loan. To help you do the same and ease the research process, we bring you a list of banks providing home loans in Pakistan.

Why should you get a home loan in Pakistan?

  • First of all, getting a home loan means that you are getting ownership of a tangible asset. A home loan will ensure that you become the owner of a house where you can retire after a long tiresome day.
  • Financing a home can be difficult. For most of us, paying in bulk for the construction of the house is nearly impossible – this is where the banks come to our rescue. They provide you with the capital you need to build your house and let you return the money at easy terms and conditions.
  • Very few people know that there are tax benefits attached to the repayments of home loans. The interest portion of the EMI paid for the year can be claimed as a deduction from your total income.
  • Home loans also allow you to save on rent. The amount you were paying to stay in someone else’s home can now be used to finance your tangible asset. Also, a home loan can save you from the uncertainty you face when living in a rented property.

Things you need to know before signing up for home loans

  • Unlike personal loans, home loans are long-term. When you get a microfinance loan or a personal loan, you pay it off within 2 to 3 years, but when you sign up for home loans, keep in mind that it will take 10-20 years to return your loan. If you are ready for this kind of financial commitment, go for a home loan.
  • When you purchase a home or build a house using the home loan, remember that you will not become the 100% owner of that property. You will only get full ownership of the property after making all the installments.
  • If you fail to make the required installments, the bank has the authority to take legal action against you. In the worst cases, it can lead to you being evicted from the home and the bank taking possession.
  • Currently, no bank is providing interest-free loans in Pakistan. However, the banks mentioned in this article are offering loans on easy terms. If you meet all their requirements, you can easily get a loan against property in Pakistan.

Here is a list of banks providing home loans in Pakistan:

Note: The figures mentioned in this article are for an average 5-marla house. The construction cost is taken as Rs. 26 lac, and the payback period is assumed as 15 years. Any action that you take upon the information on this website is strictly at your own risk. For more information on home loans, please visit the bank’s website.

Bank NameTenure
1. Alfalah Home Finance3 years to 25 years
2. Habib Bank Limited5 years to 20 years
3. Muslim Commercial BankMaximum loan tenure is 25 years
4. Askari Bank Limited3 years to 25 years
5. United Bank Limited3 years – 20 years
6. Bank Al Habib1 year to 25 years
7. JS Bank1 year to 20 years
8. Meezan Bank3 years to 25 years
9. Standard Chartered Bank1 year to 5 years
10. Summit Bank1 year to 20 years
11. Bank Islami2 years to 25 years
12. Bank of Punjab3 years to 25 years
13. Al Baraka Bank2 years to 25 years
14. MCB Islamic Bank Ltd1 year to 20 years
15. National Bank of Pakistan3 years to 20 years
16. Faysal Bank1 year to 20 years
17. Dubai Islamic Bank1 year to 20 years
18. Allied Bank Limited3 years to 25 years
19. Khushhali Microfinance Bank1 year to 20 years
20. Silk bank1 year to 5 years

 

1. Bank Alfalah

Alfalah Home Finance is giving home loans on easy terms and conditions. You can apply for a loan amount starting from Rs. 2 million to Rs. 50 million, payable in 36 to 240 monthly installments.

Requirements:

The minimum salary requirement for the filer is Rs. 70,000, and the age limit is 23-60 years. Documents required for loans include CNIC, salary slips, a 12-month bank statement, and two years of employment under the current employer.

Website: Bank Alfalah

 2. HBL

Through ‘HBL Home Loan,’ you can apply for a loan amount starting Rs. 2 million to Rs. 15 million, payable in 60 to 240 monthly installments. HBL is also offering a loan calculator on their website that you can use to calculate the loan amount.

Requirements:

The minimum salary requirement for HBL is around Rs. 100,000. The person should be 22-60 years old. The documents required are CNIC, salary slips, 12-month bank statement, minimum 5-year experience, Pakistani nationality (Resident & nonresident Pakistani), and a letter from the employer.

Website: HBL

 3. MCB

You can apply for a loan amount of up to Rs. 25 million, payable in 12 to 240 monthly installments.

Requirements:

The person should have a monthly salary of Rs. 50,000, and should be 21-60 years of age. The documents required include CNIC, salary slips, a 12-month bank statement, and proof of Pakistani residency.

Website: MCB

 4. Askari Bank

Askari bank offers loan amounts starting from Rs. 500,000 to Rs. 20 million, payable in 36 to 300 monthly installments.

Requirements:

Just like MCB, the minimum salary requirement for Askari Bank is Rs. 50,000. The age limit is 22-60 years, and the documents needed for further processing include CNIC, salary slips, and a 12-month bank statement.

Website: Askari Bank

 5. UBL

You can apply for a loan amount starting from Rs. 1 million, payable in 36 to 240 monthly installments.

Requirements:

To get the loan, the person should have a monthly income of Rs. 50,000. They should be 23-65 years old. The papers needed are CNIC, salary slips, a 12-month bank statement, proof of Pakistani residency, and 12 years of employment.

Website:  UBL

 6. Bank Al Habib

Like other banks, Bank Al Habib is also providing a loan starting from Rs. 300,000 to Rs. 20 million, payable in 240 monthly installments.

Requirements:

The minimum salary requirement is Rs. 60,000, and the age limit is 23-60 years. The things needed for the paperwork include CNIC, salary slips, and 12 monthly bank statements.

Website: Bank Al Habib

 7. JS Bank

JS Bank offers home loans ranging from Rs. 500,000 to Rs. 100 million, payable in 12 to 240 monthly installments.

Requirements:

For JS Bank, the salary bracket is a bit high. The minimum salary requirement is around Rs. 70,000. The person should be 21-60 years old and should have CNIC, salary slips, and a 12-month bank statement with them.

Website: JS bank

 8. Meezan Bank

With Meezan Bank, you can apply for a loan amount starting from Rs. 500,000 to Rs. 50 million, payable in 24 to 240 monthly installments.

Requirements:

Meezan Bank gives loans to a person who has a monthly income of around Rs. 40,000. The age bracket is 25-65 years, and the papers required for further processing include salary slips, a 12-month bank statement, and 2-year employment proof.

Website: Meezan Bank

 9. Standard Chartered

Saadiq Home Financing division of Standard Chartered is also giving loans. Like HBL, this bank is also providing an online loan calculator for its customers. You can apply for a loan amount starting from Rs. 3 million to Rs. 30 million, payable in 12 to 240 monthly installments.

Requirements:

With Standard Chartered Bank, the financing is available for up to 75% of property value. The salary requirement and age requirements are Rs. 50,000 and 21-60 years, respectively. If you are interested in getting a loan from SC, then do bring your CNIC, salary slips, 12-month bank statement, and a letter from your employer with you.

Website: Standard Chartered

10. Summit Bank

Summit Bank allows its valued customers to apply for a loan amount starting from Rs. 300,000 to Rs. 100 million, payable in 12 to 240 monthly installments.

Requirements:

The base pay for the Summit Bank is Rs. 80,000, and the age limit is 23-60 years. The documents needed for formal paperwork include CNIC, salary slips, a  12-month bank statement, and a letter from the employer.

Website: Summit Bank

 11. Bank Islami

Bank Islami is also offering home financing, starting from Rs. 200,000 to Rs. 50 million, payable in 24 to 300 monthly installments.

Requirements:

The minimum salary requirement is Rs. 51,000, and the age limit is 25-65 years. Bank Islami requires CNIC, salary slips, 12-month bank statement, 6-month employment proof, and last 6 months utility bills for documentation.

Website: Bank Islami

 12. Bank of Punjab

The BOP also offers home financing from Rs. 10 million and above, payable in 240 monthly installments.

Requirements:

The person should be earning around Rs. 40,000. They should be 21-60 years old. They should also have CNIC, salary slips, bank statements, and a copy of utility bills with them.

Website: Bank of Punjab

 13. Al-Baraka

Al-Baraka is giving out loans starting from Rs. 0.3 million to Rs. 35 million, payable in up to 240 monthly installments.

Requirements:

The minimum salary requirement is Rs. 50,000, and the person should be around 21-60 years of age. The documents required include CNIC, salary slips, and bank statements.

Website: Al-Baraka

 14. MCB Islamic Bank Ltd

MCB, being one the leading banks of Pakistan, is also giving a loan amount up to Rs. 30 million, payable in 24 to 240 monthly installments.

Requirements:

The minimum salary requirement is Rs. 60,000. Your age should be around 25-65 years. The documents needed are CNIC, salary slips, bank statement, and a minimum of five years in service.

Website: MCB Islamic Bank Ltd

15. NBP (National Bank of Pakistan)

National Bank of Pakistan also provides home loans to its valuable customers on easy terms and conditions. NBP home loan provides the best home loan rates in Pakistan because of its variable annual return policy.

Under the NBP Saibaan program, the bank is providing construction loans and purchase loans to its customers. The maximum amount that you can get is around Rs. 35 million for a period of 3 to 20 years.

Requirements:

To avail of the loan, the person should be at least 22 years old with a net income of around Rs. 10,000 (if they are a government employee) and Rs. 15000 (if they are privately employed).

To apply for the loan, you need to have the following documents with you:

  • Two attested passport-size photographs.
  • Two attested copies of your CNIC.
  • Two attested copies of CNIC of references.
  • A cheque for the processing charges.
  • Cheque in favor of legal counsel for a legal opinion.
  • Cheque in favor of Valuator for valuation report.
  • Cheque in favor of income Estimation Company for income estimation report, if applicable.
  • Property Documents: an attested copy of title documents is available.
  • Bill of quantity (BOQ) in the case of HC and LPC.

Website: National Bank of Pakistan

 16. Faysal Bank

The home loan program of Faysal Bank operates under the diminishing Musharakah principle. In this program, the bank and the customer purchase the asset jointly. The bank then rents out its share of units to the customer.

When the customer is paying all the units, the asset gets shifted in the customer’s name, becoming the sole owner of that specific property.

Currently, the following types of loans are available:

  • Home purchase.
  • Homebuilder/ Plot + construction.
  • Home renovation.
  • Home re-finance (Transfer existing home finance facility).

To avail of the loan, the person should be a citizen of Pakistan. The salaried person should have a net income of Rs.100, 000 and the age limit for the loan is between 21 to 60 years of age.

Requirements:

The bank requires the following documents for the application process:

  • Copy of CNIC.
  • 2 passport-size photographs.
  • Last six months’ salary slips.
  • Salary certificate/employment certificate (Designation, date of Joining, permanent – status, salary Breakup).
  • Last 12 months bank statement (Original).
  • Copy of complete property documents.

Website: Faysal Bank

 17. Dubai Islamic Bank

If you are looking for a home loan without interest in Pakistan, then consider this bank. Dubai Islamic bank is also providing home loans for its customers, that too without any Riba (a concept in Islamic banking that refers to charged interest). So, all those who do not want to get involved with any kind of interest can opt for this bank as it provides loans up to Rs. 75 million.

Musharakah agreement will occur between the customer and the bank. The bank will purchase the asset for the customer, and then it will lease out that property to the customer. When the loan amount is paid in full, the bank will shift the complete ownership to the customer.

Following types of home loans are being provided by the bank:

  • Home purchase.
  • Home renovation.
  • Purchase of undivided share of the property mortgaged by other banks (Balance transfer).
  • Construction finance.

Requirements:

  • Age: 25 to 60 years old.
  • Monthly income: Rs. 40,000 for salaried employees and Rs. 50,000 for self-employed.

Website: Dubai Islamic bank

Document required:

  • Copy of primary applicant’s CNIC
  • Copy of co-partners CNIC
  • 2 passport size photographs
  • Tax returns
  • Copy of utility bill
  • Professional degree (for self-employed professionals only)
  • Salary certificate/proof of profession
  • Latest salary slip
  • Bank statement of the last 12 months & bank certificate

 18. Allied Bank Limited

Allied Bank Limited is one of the most famous banks in Pakistan that is providing home loans on easy terms. If you are a Pakistani citizen within the age bracket of 25 to 57 years and have a net income of 50,000 per month, you are eligible for the home loan.

You can get Rs. 40 million in loan and you can repay it within 3 to 25 years, depending upon your preference and budget.

However, unlike many banks, Allied bank requires you to have a prior relationship of around 6 months with a bank.

Following types of loans from the bank are available at the moment:

  • Home/apartment purchase
  • Home construction (Land already owned)
  • Home renovation
  • Buy land & construct home

Requirements:

  • Last six months’ bank statement (ABL / any other bank, as the case may be)
  • Copy of CNIC/ Smart NIC
  • Proof of income
  • Complete and duly signed “Application Form”

Website: Allied Bank Limited

 19. Khushhali Microfinance Bank Limited

Khushhali Microfinance Bank is providing home loans for renovation and repairs. If you want to renovate your house and are looking for finances, consider this bank. Khushhali Bank is providing home loans up to Rs. 1000,000. Your tenure for the month is between 6 to 120 months.

Requirements:

  • Age: 25 -60 years (65 years for pensioners)
  • The annual income of the applicant should be equal to or less than PKR 600,000 per year
  • Residing in the house/ ownership of the house (if the property has been given on rent) for at least 1 year
  • Salaried individuals must be working with the current employer for at least 2 years
  • 2 years of business experience
  • NADRA CNIC/ SNIC holder

Website: Khushhali Microfinance Bank

 20. Silk bank

Silk bank is also providing home loans to its customers in easy installments. It is considered to be one of the best banks for a home loan in Pakistan.

An eligible person can get a loan amount up to Rs. 2 million, and the tenure to return the money is between one to 5 years. You do not have to give security on loan as well.

Requirements:

  • Pakistani residents
  • Foreign nationals with an approved company guarantee
  • Salaried individuals
  • Age: 21-65 years
  • Income: minimum Rs.40,000 monthly

Website: Silk bank

Story originally published in Graana Blog

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