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Home Construction Loan: Financial assistance being acquired under the NBP Mortgage Financing by mortgaging self owned residential land, which may be open or partially constructed upon, for construction purposes leading to self-occupancy Max. Loan amount: Tenure: Debt to equity Rs.35 Million 3 to 20 years 85:15
Balance Transfer Facility : Provide facility to those customers who have already availed housing finance from some other banks and they intend to switch their loans to NBP.
ELIGIBILITY
All applicants must be Pakistani resident nationals ,CNIC holder, having clean CIB/Data Check report and maintaining salary/current A/c (if not, then A/c to be opened at NBP branch before finance disbursement).
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SelfEmployed Professional Doctor, Engineer, Designer (Minimum Income:Net Take Home Architect, Chartered Accountant >=Rs 15,000) Cost & Management Accountant
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Lawyer Fee:** Agency Name: M/s Mandviwalla & Zafar Ahmed & Qazi
First Stage(Document Fees* Review)Second Rs. 1,500/= Stage(Charge Registration, Rs. 3,500 etc Fees*Rs. 3,000/= Rs. 5,000/= Rs. 1,500/= (cost per visit)
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Valuators Fee:** Purchase/Improvement Agency Name:M/s Joseph Construction:(Initial fee)For any further visits Lobo (Pvt) Ltd
*Above fees are market based and subject to change from time to time. **External Agencies Fee is only refundable if not utilized at any stage of the process.
Businessperson / 21 yrs to 62 yrs at 65 yrs at the time Self-Employed the time of of loan Professional applying. maturity. 14
National Bank of Pakistan Major Terms & Conditions Maximum Loan Amount / Tenor
Home Purchase Rs. 35 m Home Home Construction Improvement Rs. 35m Rs. 15m
3 20 Years
3 20 Years
3 15 Years
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National Bank of Pakistan Major Terms & Conditions Debt Burden Ratio
Debt burden is defined as the sum total of external debt repayments divided by the net income: Debt Repayment Debt Burden = -------------------------------Net take home salary (or Net Income) Type A 1st Category: Monthly instalment of all the loans deductible from the salary credited to account at NBP not to exceed 50% of the net take home salary*. nd Type A 2nd Category: Monthly instalment shall not exceed 50% of the net take home salary*. Type B: Debts repayment (under the subject loan) not to exceed 50% of the net Income. 16
The customer should have service age remaining equal to the tenure of the loan and a cushion period of six months (that is, 6 months beyond maturity of the loan).
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LAWYER FEE
M/s Mandviwalla & Zafar / M/s Hashmat Law Associates / M/S Sardar Law Associates / Noor Muhammad Chandia First Stage (Document Review) Second Stage(Charge Registration, etc) Rs. 1,500/= Rs. 3,500/=
*Above fees are market based and subject to change from time to time
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Note:- If Finance amount is more than 15 M both income estimation companies will appraise the income.
*Above fees are market based and subject to change from time to time
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VALUATORS FEE
M/s Surval / NPM / Projects Service Purchase/Improvement Construction (Initial fee) For any further visit Fees* Rs. 3,000/= Rs. 2,000/= Rs. 1,000/=
*Above fees are market based and subject to change from time to time
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EARLY REPAYMENT
The customer, at any point of time, may use the right to fully or partially pay the finance Customer will provide a written request for early repayment to the concerned Hub Branch that will be sent to the HO, subject to early repayment penalty in line with a)Partial Redemption (Balloon Payment) / Full Redemption within 5 years - 2% of the amount being prepaid b)Full/Partial Redemption beyond 5 years - 0%
A balloon payment case will be directed to the HO for amendments that may be required in the repayment schedules. The HO will approve a revised system generated repayment schedule and send to the concerned Retail Officer/Branch Manager at the Hub Branch, who will obtain signed customer acceptance 25
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Concept of Hub & Referral Branches: All NBP branches throughout Pakistan will act as referral branches and can refer their NBP-Saibaan cases to Hub branches however, the property has to be located in the cities where NBP-Saibaan is being offered through Hub branches.
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A letter (Annexure B) has been developed to safeguard and indemnify NBP from any future claims by the applicant for refund of fees of the External Agency, if his/her application is declined due to the following and he/she still insist to forward the case to Head Office for special consideration:
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To be submitted in case the Loan is declined and the applicant still insists to process the case.
Data Check is negative. CIB (SBP) is negative. Medical Report is not satisfactory. Legal Opinion states that the property is not mortgagable or other reasons etc. Valuation is negative. Income Estimation states that the applicant is unable to come up with the required installments. >>>In such scenarios and circumstances Loan approval will be subject to Competent Authoritys 33 decision on the case.
Currently, NBP is offering financing for purchase, construction and renovation of homes. Many banks in Pakistan have also started financing for both purchase of land and construction on it. In order to stay competitive, it has been decided that NBP will now offer financing for this with maximum Debt/Equity ratio of 70:30.
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In this connection, the sanctioned loan limit, assessed on the basis of repayment capacity of the borrower, value of land / plot and cost of construction on it etc., should be disbursed in tranches, with up to a maximum of 50% of the loan limit can be disbursed for the purchase of land / plot, and the remaining amount be disbursed for construction there-upon.
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As noted above, 50% of the approved finance amount will be disbursed initially for the purchase of the land with the banks charge on the property to be created immediately. The remaining balance for construction on the same plot will be disbursed in 4 (four) tranches as currently being followed in Home Construction cases:
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Construction should start within 6 months after disbursement of first 50% of the approved finance amount. The total construction period should not exceed 15 months inclusive of the initial 6 months. During this period i.e. 15 months, customer will only be paying mark-up on the amount disbursed.
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Full installment payment complete of Principle payment will start from the 16th month or completion of construction, whichever is earlier. In order to assess the value of construction, which will form an integral part of loan assessment, customer will be required to submit a realistic Bills of Quantity (BOQ) on the Banks approved format, at the time of applying for the finance which will be duly approved by the Banks Valuator. Each subsequent tranche will be disbursed only after receiving satisfactory valuation report (Example).
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Additionally, the bank will also finance partially constructed structures with maximum Debt/Equity ratio of 70 : 30. Loan assessment in these cases will include value of land, cost of current partial structure and the further cost required to complete the property. BoQ submission is also required here to project remaining construction cost.
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It has been decided that apart from already assigned functions as per above mentioned circulars, Hub Branch will also do some of the functions of Regional EAMU Office which are outlined below:
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1. Generate request for Data Check and e-CIB to Head Office. 2. Initiation of Life & Disability Insurance request. 3. Generate letters to Regional EAMU Office for Physical & Telephonic Verifications. 4. Generate request for Legal Opinion from the authorized BLA for NBP-Saibaan. 5. Generate request for Property Valuation from the authorized valuator for NBP-Saibaan. 6. Generate request for Income Estimation from the authorized income estimator (where applicable).
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Copies of all above letters / correspondence are also to be provided to Regional EAMU office. The Regional EAMU office will enter the triggering dates of these tasks into the CAMS. Both the Hub Branch and the Regional EAMU office will follow-up with the agencies for the timely receipt of reports.
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The external agencies are to send the original reports to concerned Hub Branch with a copy to the EAMUHead, National Bank of Pakistan, Retail Banking Group, 11th Floor, Head Office, I.I. Chundrigar Road, Karachi. In this regard it is the responsibility of each RHQ and the Hub Branch to inform its external agencies about the change in the process as mentioned above. 44
Upon receipt of external agency reports, Hub Branch will forward the same along with the complete case file to its respective Regional EAMU office, where these reports will be entered into the CAMS and the case will be processed further. Regional EAMU office will also sign off on these reports along with the Hub Branch. The TAT of external agencies will need to be monitored by both the Hub Branch and the Regional EAMU office, ensuring that the time frame provided in the instruction 45 circulars is not hindered.
The function of Physical and Telephonic Verification will remain the responsibility of the Regional EAMU Office. Similarly, the Data Check and CIB will still be the responsibility of Head Office; however, the request will be generated by the concerned HUB Branch. In this regard, the Hub Branch will send a request to its Regional EAMU office for initiating these verifications. Hub Branch will generate these requests on the same day or before it initiates the 46 case for external agencies.
With immediate effect it has been decided that in Karachi, Lahore, Islamabad & Rawalpindi for security purposes, property is to be 1% token registered (of finance amount) and balance as equitable mortgage. However, RHQs at these cities will have concern to have the property on 100% equitable mortgage subject to approval by Head Office.
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