Renting property and living as a tenant, is very much frustrating and annoying. Everyone wants to own a space they call HOME. Renting property doesn’t only drain your pockets in the very beginning of the month, but it also doesn’t let you get the peace of mind that you require. We know that buying a piece of land, and constructing your own home is not easier these days. The prices of land, construction costs, labor costs, raw material are so hefty in these times of inflation. However, there are certain companies, mostly banks, who are making this process of owning a house way more convenient and hassle free.
Thanks to the facility of house finance, offered by different banks, the whole process of building and owning a home has become way more easier. All you have to do is pay your bank installments like you pay rent and within few years your home will be totally yours, that too with easy return plan and lowest interest rates.
In this article we are going to tell you about the whole process including requirements, interest rates and processing fee of the best house financing companies. For now you need to remember two things. Firstly, the amount taken from bank has to be returned with additional charges and banks term it as Annual Percentage Rate (APR). Secondly, the repaid amount is equal to the principal amount that you have taken from bank, plus the interest amount.
Now, let’s talk about your part that you have to play! All you have to do is estimate the cost of buying land and construction on your own and then fill up a bank form, attaching all the necessary documents. We also have linked bank’s own loan calculator for your ease to know what companies are giving lowest interest house finances in Pakistan. If you are confused in costing thing, never mind! We have your back. You can check the complete cost breakdown of construction of a house, including grey structure and finishing HERE.
10 low-interest Rate Banks Providing Home Loan in Pakistan
We have sorted a list of 10 banks that have comparatively lower interest rates than the market, with a streamlined process.
| Bank Name | Period of Repayment |
| Bank Alfalah Home Finance | 3-25 years |
| Habib Bank Limited | 5-20 years |
| Askari Bank | 3-25 years |
| United Bank Ltd. | 3-20 years |
| Meezan Bank | 3-25 years |
| National Bank | 3-20 years |
| Dubai Islamic Bank | 1-20 years |
| Allied Bank | 3-25 years |
| Khushhali Microfinance Bank | 1-20 years |
| Al Baraka Bank | 2-25 years |
Bank Al-falah Home Finance
Bank alfalah home finance is providing home loans on easy terms. The amount you can get is from 20 lacs to 5 crore, depending on your income. You can pay this amount back in 3-25 years.
Requirements
- Must be a filer
- Salary requirement: 70,000 min.
- Age limit: 23-60 years
- CNIC
- Salary slips
- 12-months bank statement
- 2 year of employment certificate
Habib Bank Ltd.
Who doesn’t know Habib Bank Ltd., with a branch almost everywhere? “HBL Home Loan” is also giving away house loans on easy installment plans. The amount you can get is from 20 lacs to 1.5 crore, depending on your income. You can pay this amount back in 5-20 years.
Requirements
- Salary requirement: 100,000 min.
- Age limit: 22-60 years
- CNIC
- Salary slips
- 12-months bank statement
- 5 year of employment certificate
- Pakistani nationality, whether residing or not
- Employer’s recommendation letter
Askari bank
Askari bank is also a well-known commercial banking company administered by military. So there shouldn’t be any doubts regarding the authenticity of them. Askari Bank is also providing home loan under “Mera Pakistan, Mera ghar” scheme. The amount you can get is from 5 lacs to 2 crore, depending on your income. You can pay this amount back in 3-25 years.
Requirements
- Salary requirement: 50,000 min.
- Age limit: 22-60 years
- CNIC
- Salary slips
- 12-months bank statement
United Bank Ltd.
United bank is also one of the Pakistan’s leading banks. They are also providing flexible home loans. The amount you can get is from 10 lacs, depending on your income. You can pay this amount back in 3-20 years.
Requirements
- Salary requirement: 50,000 min.
- Age limit: 23-65 years
- CNIC
- Salary slips
- 12-months bank statement
- 12 year of employment certificate
- Pakistani nationality, whether residing or not
Meezan Bank
Meezan bank is an “asianmoney” certified Islamic bank, and are currently providing riba-free loans. The amount you can get is from 5 lacs to 5 crore, depending on your income. You can pay this amount back in 2-20 years.
Requirements
- Salary requirement: 40,000 min.
- Age limit: 25-65 years
- CNIC
- Salary slips
- 12-months bank statement
- 2 year of employment certificate
National Bank
NBP is Pakistan’s government shared bank, and has an immensely authentic reputation. NBP is also providing home loans under “NBP Saibaan” programme. The amount you can get is upto 3.5 crore, depending on your income. You can pay this amount back in 3-20 years.
Requirements
- Salary requirement (Govt. employee): 10,000 min.
- Salary requirement (private employee): 15,000 min.
- Age limit: 23-65 years
- CNIC
- Salary slips
- 12-months bank statement
- 12 year of employment certificate
- Pakistani nationality, whether residing or not
- 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.
Dubai Islamic Bank
Dubai Islamic Bank is providing home loans according to Islamic principles. If someone doesn’t want to get involved in interest, then they should definitely look towards Dubai Islamic Bank. The amount you can get is up to 7.5 crore, depending on your income. You can pay this amount back in 1-20 years.
Requirements
- Salary requirement (employees): 40,000 min.
- Salary requirement (self-employed): 50,000 min.
- Age limit: 25-60 years
- CNIC
- Salary slips
- 12 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
Allied bank is also a renowned Pakistani bank for provision of home loans on easy terms. The amount you can get is up to 4 crore, depending on your income. You can pay this amount back in 3-25 years.
Requirements
- Salary requirement: 50,000 min.
- Age limit: 23-65 years
- CNIC
- Salary slips
- 12-months bank statement
- 5 year of employment certificate
- Pakistani nationality, whether residing or not
Khushhali Microfinance Bank
Khushali Microfinance bank is financing on micro level, and they have teamed up in the market lately. Currently they are providing loans for renovation and refix. You can get up to 10 lacs for this purpose, and have to return it in 6 months to 10 years.
Requirements
- Salary requirement: 50,000 min.
- Age limit: 25-60 years
- CNIC
- Salary slips
- 12-months bank statement
- 2 year of employment certificate / business experience
Al Baraka Bank
Al Baraka is also a well-known startup and are providing small loans from 3 lacs to 3.5 crore, payable in up to 20 years.
Requirements
- Salary requirement: 50,000 min.
- Age limit: 21-60 years
- CNIC
- Salary slips
- 12-months bank statement
