State Bank loosens rules to boost low-cost housing finance

SBP has unveiled 5 regulatory relaxations to incentivize banks in a bid to promote low-cost housing finance in the country. Specifically, in the SBP regulations, the value of housing unit has been increased from PKR 3Mn to PKR 3.5Mn with maximum loan size increased from PKR 2.7Mn to PKR 3.15Mn. In order to facilitate financing, SBP is also urging the banks to use alternate methods to identify income sources to assess the credit worthiness of the borrowers.