KARACHI: House Building Finance Company Limited, HBFCL, (formerly known as House Building Finance Corporation Limited), has launched a new financing scheme called “HBFCL Renovation Loans” to especially facilitate lower and middle income groups.

The scheme aims at providing financial assistance for renovation, extension and improvement of self-owned properties, thereby lessening pressure on new housing.

“There is a shortage of 7.5 million housing units in the country and this figure is growing all the time. One effective way to address this shortage is to facilitate people to renovate and extend their existing homes, allowing growing families to live together in larger premises. Our new Renovation Loan scheme aims to do just this,” stated Azhar Jaffri, Managing Director and Chief Executive Officer of HBFCL. The public will be able to avail the Renovation Loan by mortgaging self-owned and self-occupied residential property, whether it is a house or an apartment. The loan will be advanced for a period of 2 to 10 years and the age limit for the applicant and co-applicant is minimum 18 years and maximum 60 years for salaried and up to 65 years for self-employed persons. One of the salient features of this scheme is that there are no hidden processing charges built in, which will make it easier for the customers to avail the opportunity.

Under HBFCL Renovation Loans, the company is offering loans for renovations, improvement or extension of their existing property at easy and affordable terms. The scheme is initially being launched in Karachi, Lahore, Islamabad and Peshawar and will soon be extended to Hyderabad, Multan, Faisalabad and Abbotabad. Areas within cantonment limits of Wah and Taxila will also be covered in the second phase.

HBFCL is now an unlisted Public Limited Company. Its vision is “to be the prime housing finance institution of the country, providing affordable housing solutions to low and middle income groups of population by encouraging new constructions in small and medium housing (SMH) sector.”