KARACHI: Banks gave conditional approvals on the spot for property finance loans of Rs 7.4 billion during the first Mera Pakistan Mera Ghar Mela held in Faisalabad. Banks received an overwhelming response at the first ever Mera Pakistan Mera Ghar (MPMG) Mela hosted by State Bank in Faisalabad. During the event, banks registered applications for Rs 18 billion from candidates.
During the two-day Mela, held on March 19 and 20, 2022, more than 30,000 people visited to get information about the MPMG and apply for loans through the banks’ one-stop shop. For registered applications, banks provided conditional approvals of around Rs 7.4 billion.
During the Mela, 25 banks and 28 builders/developers set up booths and made arrangements to receive applications, process applications after eCIB clearance, calculate installment amounts and issue conditional approval letters to applicants. Despite the scorching heat, long queues of interested candidates were seen on bank stalls.
In order to create healthy competition between the banks, their performance during the Mela was measured in five categories and made public to recognize their efforts. Meezan Bank is recognized for having the most innovative booth.
Meezan Bank also got the highest app connections. BoP and NBP were declared the fastest banks to offer the first letter of conditional approval to an applicant. ABL provided the most conditional approval letters to applicants. While Bank Al-Habib was recognized as the best quality of service according to visitors’ votes.
Throughout the Mela, senior SBP officials visited bank and developer stalls to oversee progress. Complaints from interested candidates were handled on the spot. Senior officials, including presidents and regional heads of banks, frequented the Mela and mentored candidates. All of this resonated well with the key objective of the Mela, emphasized by the Governor of the State Bank during the inauguration session, that the general public must witness and believe that they obtain financing within the framework of the flagship program MPMG.
During the inauguration ceremony of the Mela, Dr. Reza Baqir, Governor of the State Bank, in his opening speech, introduced the public to the journey of the MPMG. He mentioned that due to the continuous efforts of SBP, Government, NAPHDA and banks, the number of finance applications and their approvals are steadily increasing with banks approving over Rs 4.5 billion and disbursing approximately 2.3 billion rupees per week. As a result of the MPMG scheme, applications for affordable housing finance which were almost non-existent about 15 months ago reached Rs 357 billion of which 157 billion applications were
approved and Rs56 billion disbursed so far. The inauguration ceremony was also delivered by Faiz Ullah Kamoka, Chairman of the National Assembly Standing Finance Committee and Mr. Farrukh Habib, Minister of State for Information.
Both speakers underlined the government’s particular emphasis on promoting housing and construction finance, especially for low and affordable housing. MPMG recipients get funding at fixed, subsidized rates as the government provides subsidies to this underserved sector. The inauguration ceremony was attended by CEOs of banks, dignitaries from Faisalabad including leading businessmen, VCs of universities and media.
Copyright Business Recorder, 2022