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MPMG: Banks receive Rs245bn mortgage finance applications

MPMG: Banks receive Rs245bn mortgage finance applications

Latest data by the State Bank of Pakistan (SBP) has revealed that loan approvals and disbursements under the government’s flagship markup subsidy scheme, commonly known as Mera Pakistan Mera Ghar (MPMG) scheme by banks is getting traction.

Loan approvals per week reached Rs4 billion and disbursements per week stood at Rs1.6 billion in November.

Since the launch of the scheme, applications of Rs 245 billion under MPMG have been received and banks have approved housing finance of about Rs 100 billion up till November 30, 2021.

Similarly, pace of disbursement under MPMG that was initially slow, has also picked up. By November 30, 2021, disbursement under the scheme reached Rs28.7 billion, while in the same month Rs6.5 billion worth of amount alone was disbursed.

MPMG scheme: Banks approve over Rs59bn financing till Aug 31st

On average, to date, banks have approved 41% of amount applied while 29% of approved amount has been disbursed.

These approval and disbursement ratios have similarly risen over the past few months as banks have put in place the needed upfront investment in procedures and technology to process applications for low-cost housing.

Since the announcement of MPMG scheme last year, the SBP has taken various enabling steps such as introducing standardized and simple application form; adopting informal income assessment model; providing relaxations in prudential regulations; establishing helpdesks at all the SBP field offices; and, designing a complaint portal supported by a network of focal persons of all banks across all geographical areas.

‘Mera Pakistan Mera Ghar’ SBP Governor inaugurates joint PBA Call Centre helpline

Back in October, MPMG – Helpline, a joint call centre of banks was launched for the convenience of low-cost housing borrowers across Pakistan.

The main purpose of this helpline is to provide a one-stop solution for product information on low-cost housing loan facility across banks, explain and guide borrowers on policy, procedures and documentation requirements for availing low-cost housing loans.

Source: Business Recorder

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