Housing is one of the most major expense for any poor family to spent in one go, particularly for those living below poverty line. People in poorer segment face high land prices, complicated or completely absent land titling processes, costly building materials, and low incomes or savings. To manage this situation, many turns to a process called incremental building whereby people build and expand their home over time as either surpluses or support funding becomes available. TMF offer housing finance loans to low-income people to help address this demand. Depending on the product, loans may cover the renovation or expansion of an existing home, construction of a new home, or basic infrastructure improvements, such as electricity or sanitation. Mortgages to purchase a home are less common but exists in some markets. As with other microloans, housing finance loans are typically not secured by collateral, and are largely based on either a group guarantee or other social capital.

Objective

Housing production and preservation result in an adequate supply of ownership that is safe, healthy and affordable to people of low-income levels, races, ages, and suitable for their various needs.
Housing helps to create safe, livable and sustainable neighborhoods.
Housing opportunities for all without discrimination.
TMF committed to preventing and ending homelessness.

Housing Finance

TMF is committed to provide housing finance based on above mentioned objective under following products.

Types of Products

• Construction
• Purchase
• Extension
• Repair and Maintenance

Operational Methodology and Eligibility Criteria

Lending Methodology: Individual
Beneficiaries: Male & Female
Age Limit: 18 – 60 Years
Eligible individual: Self Employed / Salaried Employed
In exceptional cases such as widows, divorcee, issue-less couples and unmarried women aged 30 and above, the guarantees of other blood relatives, who do not have inheritance

Coverage Area: City Town & Village
Loan for Construction
Loan Size: PKR 500,000 to 1,500,000
APR 38%
Duration: 60 Months
Disbursement Installment Frequency:

Financing facility will be provided in three installments at below defined construction stages;

First Installment – 30% at Plinth

Second Installment – 30% at Lenter

Third Installment – 40% at Roof

Recovery Installment Frequency: Monthly Criteria
If on Landlord land than NOC from that person
Water connection from municipality / Town Committee
Land ownership document
His / Her vote should be registered in same village, town or city – Evidence
Source of income – Small business, salaried employee, pensioner
TMF civil engineer will certify stages of constructed home
Waterproof
Will elevate the land dip to build home so water should not come inside which can be 1 foot above the ground level
Solar energy for new build home
Two tree plantations for new home
Kitchen, washroom mandatory in home
Undertaking of not to sell home before clearing all TMF installments.
Monthly installment should not be more than 30% of his / her income
TMF civil engineer will estimate construction cost and TMF will pay 70% of total estimated amount to construct home.
Collateral: Non-collateral (Social Guaranty & Cheque)

House Purchase:

Lending Methodology Individual

Beneficiaries: Male & Female

Age Limit: 18 – 60 Years

Eligible individual: Self Employed / Salaried Employed

In exceptional cases such as widows, divorcee, issue-less couples and unmarried women aged 30 and above, the guarantees of other

Blood relatives, who do not have inheritance

Coverage Area City Town & Village

Loan for Purchase

Loan Size PKR 500,000 to 1,500,000

APR 38%

Duration 60 Months

Disbursement Installment

Frequency

Financing facility will be provided in one go to the borrower

Recovery Installment Frequency Monthly

Criteria If on Landlord land than NOC from that person

Source of income – Small business, salaried employee, pensioner

Kitchen, washroom mandatory in home

Undertaking of not to sell home before clearing all TMF installments.

Monthly installment should not be more than 30% of his / her income

Borrower will provide valuation report from certified value to TMF and TMF will pay 70% of total valuated amount to construct home.

Disbursement Cheque will be issued on name of Seller party

The borrower should have clear and marketable title and the house & apartment should not be more than 45 years old.

Borrower should maintain house on his or spouse name.

Collateral Non-collateral (Social Guaranty & Cheque)

Home Extension and Repair and Maintenance

Lending Methodology: Individual

Beneficiaries: Male & Female

Age Limit 18 – 60 Years

Eligible individual Self Employed / Salaried Employed

In exceptional cases such as widows, divorcee, issue-less couples and unmarried women aged 30 and above, the guarantees of other blood relatives, who do not have inheritance

Coverage Area City Town & Village

Loan for Extension, Repair and Maintenance

Loan Size Extension – PKR 300,000 to 700,000

Repair and Maintenance – PKR 100,000 to 300,000

APR 38%

Duration Extension – Minimum 24 Months Maximum 36 months

Repair and Maintenance- Minimum 12 Months Maximum 24 months

Disbursement Installment

Frequency

Financing facility will be provided in one installment

Recovery Installment

Frequency

Monthly

Criteria If on Landlord land than NOC from that person

Bill of Water connection on borrower’s name from municipality / Town Committee

Bill of Electricity connection on borrower’s name

Land ownership document

His / Her vote should be registered in same village, town or city – Evidence

Source of income – Small business, salaried employee, pensioner

Kitchen, washroom mandatory in home

Undertaking of not to sell home before clearing all TMF installments.

Monthly installment should not be more than 30% of his / her income

TMF civil engineer will estimate construction cost and TMF will pay 70% of total estimated amount to construct home.

Collateral Non-collateral (Social Guaranty & Cheque)

Terms and Conditions to protect Environment

If on Landlord land than NOC from that person

Source of income – Small business, salaried employee, pensioner
Kitchen, washroom mandatory in home
Undertaking of not to sell home before clearing all TMF installments.
Monthly installment should not be more than 30% of his / her income
Borrower will provide valuation report from certified valuer to TMF and TMF will pay 70% of total valuated amount to construct home.
Disbursement Cheque will be issued on name of Seller party.
The borrower should have clear and marketable title and the house & apartment should not be more than 45 years old.

Borrower should maintain house on his or spouse name.