BankIslami inks agreement with PMRC for Low-Income Housing Finance

KARACHI: BankIslami Pakistan Limited, one of the country’s leading Islamic banks with a strong network of 335+ branches in 114+ cities, has signed a Master Credit Guarantee agreement with Pakistan Mortgage Refinance Company (PMRC), to avail risk cover for low-income housing finance.

PMRC is setup as a mortgage liquidity facility that addresses the long term funding constraints in the banking sector, and ensures sound lending. With the agreement between the two leading institutions, both BankIslami and PMRC have affirmed their commitment to mutually improve housing finance in Pakistan.

Risk coverage will assist BankIslami and PMRC in providing affordable housing finance to fresh homeowners in Pakistan and will help the bank to alleviate the credit risk, while ensuring affordable mortgage facilities to the low-income segments of the population.

This 10 year credit guarantee scheme has been classified as liquid security by the State Bank of Pakistan, and will provide risk coverage for BankIslami over 40% of the eligible housing portfolio outstanding amount. This step has been taken in line with the Prime Minister and the SBP’s efforts to make housing affordable by making financing more accessible.

President and CEO, Syed Amir Ali said on the occasion, “BankIslami Pakistan Limited has facilitated Pakistani homeowners for the last 13 years and has established itself as a prominent player in the house financing industry. Now, with the PMRC on board, we can work together to promote Islamic housing finance to all demographics.”****