The National Bank Of Pakistan is one of the leading financial institutions in Pakistan that provides different loan schemes such as business loans, home loans, and personal loans. Choosing the NBP Home Loan for making your own sweet home is quite a good selection. Go through the whole article to know about the NBP Home Loan scheme.
What Is Home Loan
A home loan is a loan that is used to purchase a property. Home loans are available from banks, credit unions, and other lending institutions. The terms of a home loan can vary depending on the lender, but most home loans have a fixed interest rate and a repayment period of 3 to 30 years.
Home buyers typically make a down payment (According to lender policy) of the purchase price of the property, with the remaining amount being financed through the home loan.
Home buyers should compare interest rates and fees from multiple lenders before choosing a home loan.
Why Home Loan Is Important
A home loan is a loan that is specifically used to finance the purchase of a house. Home loans are usually taken out by people who are looking to buy their home or first home, as they can provide the funds necessary to cover the full cost of the property.
There are many different types of home loans available, and each one has its own set of terms and conditions.
However, all home loans share one key feature: they allow borrowers to spread the cost of the loan over a number of years, making it more affordable in the long run.
There are several reasons why taking out a home loan can be beneficial.
- It can help to make the process of buying a property more affordable. As most home loans are repaid over a number of years, borrowers can effectively spread the cost of the loan, making it more manageable.
- Home loans can provide borrowers with access to a larger amount of money than they would be able to raise themselves. This can be particularly useful for people who are looking to buy more expensive properties.
- Finally, taking out a home loan can often lead to lower interest rates than other types of borrowing, such as personal loans. This means that borrowers can save money in the long run by taking out a home loan.
What Are The Benefit Of Using A Home Loan
A home loan is a long-term investment that can have many benefits for borrowers.
- One of the most obvious advantages is that it can help buyers to purchase a property that they may not have been able to afford otherwise.
- Home loans can also offer tax benefits, as the interest paid on the loan is often tax-deductible.
- In addition, home loans can provide stability and security, as the monthly, quarterly, or annual payments are typically fixed for the life of the loan.
As a result, borrowers who are looking to purchase a property should consider taking out a home loan in order to take advantage of all the potential benefits.
NBP Home Loan
NBP is giving a home loan up to an amount of 35 million PKR which a borrower can pay within 3 to 20 years duration. A person can also apply for a home improvement loan which is up to 5 million PKR and the loan can be paid within a 3 to 15 years period.
For Salaried Person
- Applicant must be a resident of Pakistan
- He or she must have a national Id card
- He or she Must be over 21 years old and up to 60 plus
- The applicant has to clear all his or her credit history
- The minimum income for taking this facility is 35000 PKR
- Length of service must be above 1 year
- Markup is 2%
- The maximum DBR is 50% (DBR stands for Debt Burden Ratio)
For Self Employment
- A person who is taking this loan scheme must be a resident of Pakistan
- Applicant must have a national Id card
- He or she must be over 21 years old and up to 60 plus
- Applicant’s credit history must be cleared before applying for a loan
- The minimum income for taking this facility is 150000 PKR
- Length of service or business must be above 3 years
- Markup is 3%
- The maximum DBR ratio is 50%
Documents Required For Salaried Person
- Loan Application Form
- Valid NIC (Copy)
- 2 Passport size photos of the applicant
- Reference valid NIC (Copy)
- 3 months pay slip (Copy)
- 3 months bank statement (Copy)
- Property documents
- Employment certificate and employee account details
- Employment letter if employment certificate is not available
- Proof of income such as a pay slip or electronic pay slip with proper verification
Note: Other documents may be required
Documents Required For Self-Employed or Business Person
- Loan Application Form
- Valid NIC (Copy)
- 2 Passport size photos of the applicant
- Direct Debit Authority
- Property documents
- Proof of business such as Partnership Deeds, Bank Certificate of Sole Proprietorship or Partnership, Rent agreement of office or Professional degree
- Income Proof Documents such as an account maintenance letter and 6 months’ bank statement
Note: Other documents may be required
DBR Rate
- A person whose salary is up to 50k PKR can have 40% of DBR
- A person whose salary is 50k to 100k PKR can have 45% of DBR
- A person whose salary is above 100k PKR can have a maximum of 50% of DBR
General FAQS
Why should one choose the NBP Home Loan?
Choosing the NBP Home Loan is a good selection because this is one of the safest banks in Pakistan. Their representatives are available every time when a client needs their support. Except for all these, the interest rate of NBP is quite favorable as compared to other financial institutions in Pakistan.
How much amount one can get in the NBP Home Loan Scheme?
The maximum amount of 35 million PKR can be taken in the NBP Home Loan Scheme which is quite a good amount in Pakistan.
Note: Must read the policy and instructions from the official website of NBP and SBP before applying for an NBP home loan.