Karachi: Commercial banks were urged by the State Bank of Pakistan (SBP) to develop their income estimating formulae to help a significant number of people earn by informally obtaining money, said news sources.

The Central Bank has reportedly decided because the loan for housing units is, according to government estimates, still weaker.

Read more: Banks want to lower cost of processing housing loans

The model seeks to analyze the reimbursement capacity of informal income applicants, which can be calculated based on household spending, including educational and energy costs. It will enhance people’s participation in Mera Pakistan Mera Ghar, the government’s G-MSS.

The banks have also emphasized land leasing as a significant obstacle to people’s construction of low-cost dwellings. The land lease process is confusing and resourceful and leads people to build residences on freed land to save time and money.

As of June 15, 2021, according to estimates, banks had granted PKR 30 billion in domestic loans against PKR 90 billion in demand. The central bank has allocated a month to construct a realistic income estimation model based on a baseline income estimation model (previously developed by the Association of Pakistani Banks) or indigenous.

Stay tuned with Tajarat Property for more updates or information about the top-notch real estate projects like Blue World City.