Building a home in today’s era can be difficult due to the increasing cost of raw materials, labor, and property tax. Before getting a loan for the home, you know precisely about the plot size conversion. Once you know the exact size of your land, then it is easy for you to get a loan with a proper plan.
Thankfully, some banks are providing home financing for Pakistani people. All you have to do is pay a certain amount of money monthly to the bank. This makes the whole construction process more accessible and more practical. A person from the middle and upper-middle classes can enjoy the perks of their own home, all thanks to home financing.
We have outlined a handy and thorough comparison among different banks so that you can see how the whole loan thing works. Before starting with the article, we would like to highlight that the costs and interest rates mentioned in the content are for Islamabad. The interest rates, terms, and conditions may differ in other cities.
Also, these figures are related to an average 5-marla house in Islamabad. The construction cost is Rs. 26 lac, and the payback period is 15 years. You can change the cost of construction, income bracket, and payback period according to your preference.
The primary objective of this article is to educate people about the interest rates, processing fees, and basic requirements of every bank.
List of Banks Providing Home Loans in Pakistan
|1. Alfalah Home Finance||3 years to 25 years.|
|2. Habib Bank Limited||5 years to 20 years.|
|3. Muslim Commercial Bank||Maximum loan tenure is 25 years|
|4. Askari Bank Limited||3 years to 25 years.|
|5. United Bank Limited||3 years – 20 years|
|6. Bank Al Habib||1 year to 25 years.|
|7. JS Bank||1 year to 20 years.|
|8. Meezan Bank||3 years to 25 years.|
|9. Standard Chartered Bank||1 year 5 years|
|10. Summit Bank||1 year to 20 years|
|11. Bank Islami||2 years to 25 years.|
|12. Bank of Punjab||3 years to 25 years.|
|13. Al Baraka Bank||2 years to 25 years.|
|14. MCB Islamic Bank Ltd||1 year to 20 years.|
|15. National Bank of Pakistan||3 years to 20 years.|
|16. Faysal Bank||1 year to 20 years|
|17. Dubai Islamic Bank||1 year to 20 years.|
|18. Allied Bank Limited||3 years to 25 years|
|19. Khushhali Microfinance Bank||1 year to 20 years.|
|20. Silk bank||1 year to 5 years|
Alfalah Home Finance gives home loans in Pakistan on easy terms and conditions. You can apply for a loan amount starting from Rs2 million to Rs. 50 million, payable in 36 to 240 monthly installments.
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, 12-month bank statements, and two years of employment under the current employer.
Website: Bank Alfalah
Through ‘HBL Home Loan,’ you can apply for a loan amount starting from Rs.2 million to Rs. 15 million, payable in 60 to 240 monthly installments. HBL also offers a loan calculator on their website that you can use to calculate the loan amount.
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, a 12-month bank statement, a minimum of 5 years experience, Pakistani nationality (Resident & nonresident Pakistani), and a letter from the employer.
You can apply for a loan of up to Rs. 25 million, payable in 12 to 240 monthly installments.
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, 12-month bank statement, and proof of Pakistani residency.
Askari bank offers loan amounts starting from Rs. 500,000 to Rs20 million, payable in 36 to 300 monthly installments.
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
You can apply for a loan starting from Rs. 1 million, payable in 36 to 240 monthly installments.
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 proof of 12 years of employment.
Bank Al Habib
Like other banks, Bank Al Habib also provides a loan from Rs. 300,000 to Rs. 20 million, payable in 240 monthly installments.
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
JS Bank offers home loans ranging from Rs. 500,000 to Rs. 100 million, payable in 12 to 240 monthly installments.
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 12-month bank statements with them.
Website: JS 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.
Meezan Bank gives loans to a person with 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, 12-month bank statement and 2-year employment proof. Get to know Meezan home loans.
Website: Meezan Bank
Saadiq Home Financing division of Standard Chartered is also giving loans. Like HBL, this bank also provides an online loan calculator for its customers. You can apply for a loan amount from Rs3 million to Rs30 million, payable in 12 to 240 monthly instalments.
Standard Chartered Bank offers financing for up to 75% of property value. The salary requirement and age requirements are Rs. 50,000 and 21-60 years, respectively. If you want a loan from SC, bring your CNIC, salary slips, a 12-month bank statement, and a letter from your employer.
Website: Standard Chartered
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.
The base pay for 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
Bank Islami also offers home financing from Rs. 200,000 to Rs. 50 million, payable in 24 to 300 monthly installments.
The minimum salary requirement is Rs. 51,000, and the age limit is 25-65 years. Bank Islami requires CNIC, salary slips, a 12-month bank statement, 6-month employment proof, and last 6 months’ utility bills for documentation.
Website: Bank Islami
Bank of Punjab
The BOP also offers home financing from Rs10 million and above, payable in 240 monthly installments.
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
Al-Baraka is giving out loans starting from Rs0.3 million to Rs. 35 million, payable in up to 240 monthly installments.
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 statement.
MCB Islamic Bank Ltd
MCB, one of Pakistan’s leading banks, is also giving a loan amount up to Rs. 30 million, payable in 24 to 240 monthly installments.
The minimum salary requirement is Rs. 60,000. Your age should be around 25-65 years. The documents needed are CNIC, salary slips, bank statements, and a minimum of five years in service.
Website: MCB Islamic Bank Ltd
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 provides construction and purchase loans to its customers. The maximum amount you can get is around Rs.35 million for 3 to 20 years.
To avail of the loan, the person should be at least 22 years old with a net income of around Rs.10, 000 (if he or she is a government employee) and Rs.15000 (if he or she is 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.
- 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: attested copy of title documents available.
- Bill of quantity (BOQ) in the case of HC and LPC.
Website: National Bank of Pakistan
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 all the units are being paid for by the customer, the asset gets shifted in the name of the customer and he becomes the sole owner of that specific property.
Currently, the following types of loans are available:
- Home purchase.
- Home builder/ 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.
The bank requires the following documents for the application process:
- Copy of CNIC.
- Two passport-size photographs.
- Last six months’ salary slips.
- Salary/employment certificate (Designation, date of Joining, permanent – status, salary Breakup).
- Last 12 months bank statement (Original).
- Copy of complete property documents.
Website: Faysal Bank
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 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 interest can opt for this bank as it provides loans up to Rs.75 million.
A Musharakah agreement will occur between the customer and the bank. The bank will purchase the asset for the customer and then 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.
The following types of home loans are being provided by the bank:
- Home purchase.
- Home renovation.
- Purchase of an undivided share of the property mortgaged by other banks (Balance transfer).
- Construction finance.
- 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
- 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
Allied Bank Limited
Allied Bank Limited is one of the most famous banks in Pakistan that provides 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, then you are eligible for a home loan.
You can get Rs.40 million in loan and repay it within 3 to 25 years, depending on your preference and budget. However, unlike many banks, Allied bank requires a prior relationship of around six months with a bank.
The 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 a home
- 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 sign “Application Form”
Website: Allied Bank Limited
Khushhali Microfinance Bank Limited
Khushhali Microfinance Bank provides home loans for renovation and repairs. Consider this bank if you want to renovate your house and are looking for finances. Khushhali Bank provides home loans up to Rs.1000 000. Your tenure for the month is between 6 to 120 months.
- Age: 25 -60 years (65 years for pensioners)
- Annual income of 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
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 of 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.
- Pakistani residents
- Foreign nationals with an approved company guarantee
- Salaried individuals
- Age: 21-65 years
- Income: minimum Rs.40,000 monthly
Website: Silk bank
All the content provided in this blog post is for educational purposes. The information provided in this article is should be considered for educational/ entertainment purposes only.
You get a loan for small businesses or startups as well. There are millions of business ideas in Pakistan out there, each catering to a different customer segment.
Pros of getting 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 when 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 that 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 that you face when you are 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 or personal loan, you pay it off within 2 to 3 years. But when you sign up for home loans, remember that returning your loan will take 10-20 years. 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 a home loan, remember that you will not become the 100% owner of that property. After making all the installments, you will only get full ownership of the property.
- If you will fail to make the required installments, the bank has the authority to take legal action against you. In the worst of cases, it can lead to you being evicted from the home and the bank taking possession.
Any action you take upon this website’s information is strictly at your own risk. For more information on home loans, visit the bank’s website. If you want to calculate and compare costs, then you can use Home Loan Calculator.
Currently, no bank is providing interest-free loans in Pakistan. However, the banks that we have mentioned above are offering loans on easy terms. If you meet all their requirements, you can easily get a loan against property in Pakistan.
Which bank gives loans on property in Pakistan?
Several banks in Pakistan provide home loans and mortgages to individuals who want to buy or build a property. Some popular banks that offer home loans in Pakistan are the National Bank of Pakistan, Habib Bank Limited (HBL), United Bank Limited (UBL), Meezan Bank, and Bank Al-Habib.
How to get a house loan from a bank in Pakistan?
To get a house loan from a bank in Pakistan, you can follow these steps:
- Determine the type and amount of loan you require based on your financial needs and repayment capacity.
- Check the eligibility criteria and documentation requirements for home loans from the banks.
- Submit the necessary documents, including proof of income, property documents, and identity verification.
- The bank will appraise the property to determine its value and your loan eligibility.
- Once the loan is approved, the bank will disburse the loan amount to the seller or builder of the property.
- You will then have to repay the loan in installments over the agreed-upon term of 20-25 years.
Which is the most accessible bank to get a home loan?
Determining which bank is the easiest to get a home loan from is challenging, as it ultimately depends on your creditworthiness and financial history. However, Habib Bank Limited (HBL) is one of the popular banks in Pakistan that offers home loans and has a relatively straightforward application process.
How to get a home loan from HBL Bank?
To get a home loan from HBL Bank, you can follow the abovementioned steps and visit the nearest HBL branch or apply online through their website. You must submit the necessary documents, such as proof of income, property documents, and identity verification.
HBL Bank will appraise the property and your eligibility for the loan. If the loan is approved, the bank will disburse the loan amount to the seller or builder of the property, and you will have to repay the loan in installments over the agreed-upon term.