Housing is one of the significant expenses for any low-income family to spend in one go, particularly for those living below the poverty line. People in poorer segments face high land prices, complicated or completely absent land titling processes, costly building materials, and low incomes or savings. Many turn to incremental building to manage this situation, whereby people build and expand their homes over time as surpluses or support funding becomes available. TMF offers 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, the construction of a new home, or basic infrastructure improvements, such as electricity or sanitation. Mortgages to purchase a home are less common but exist in some markets. Like other microloans, housing finance loans are typically not secured by collateral and are primarily based on a group guarantee or other social capital.

Objective

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

Housing Finance

TMF is committed to providing housing finance based on the above objective under the following products.

Types of Products

• Construction
• Extension
• Repair and Maintenance

Operational Methodology and Eligibility Criteria

Lending Methodology: Individual
Beneficiaries: Male & Female
Age Limit: 25 – 60 Years
Eligible individual: Self-Employed / Salaried Employed
In exceptional cases such as widows, divorcees, issue-less couples, and unmarried women aged 30 and above, the guarantees of other blood relatives who do not have an inheritance

Coverage Area: City Town & Village
Loan for Construction
Loan Size: PKR 100,000 to 250,000

Duration: 12 Months

Recovery Installment Frequency: Monthly

Requirements
1.  If on Landlord land, then NOC from that person
2.  Water connection from municipality / Town Committee
3. Land ownership document
4. Their vote should be registered in the same village, town, or city – Evidence
5. Source of income – Small business, salaried employee, pensioner
6. TMF civil engineer will certify stages of the constructed home
7. Waterproof
7. Will elevate the land dip to build a home so water should not come inside, which can be 1 foot above the ground level
8. Solar energy for newly built home
9. Two tree plantations for new home
10. Kitchen, washroom mandatory in home
11. Undertaking not to sell a home before clearing all TMF installments.
12. Monthly installment should not be more than 30% of their income
13. The TMF civil engineer will estimate the construction cost, and TMF will pay 70% of the total estimated amount to construct the home.
Collateral: Non-collateral (Social Guarantee & Cheques)

 

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, divorcees, issue-less couples, and unmarried women aged 30 and above, the guarantees of other blood relatives who do not have an inheritance

Coverage Area City Town & Village

Loan for Extension, Repair and Maintenance

Loan Size Extension – PKR 100,000 to 250,000

Repair and Maintenance – PKR 100,000 to 250,000

Duration Extension – 12 Months

Repair and Maintenance- 12 Months

Frequency

The financing facility will be provided in one installment

Recovery Installment

Frequency

Monthly

Criteria If on Landlord land, then NOC from that person

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

Bill of Electricity connection in borrower’s name

Land ownership document

Their vote should be registered in the same village, town, or city – Evidence.

Source of income – Small business, salaried employee, pensioner

Kitchen and washroom mandatory in home

The undertaking is not to sell a home before clearing all TMF installments.

Monthly installment should not be more than 30% of their income

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

Collateral Non-collateral (Social Guaranty & Cheque)

Terms and Conditions to Protect the Environment

If on Landlord land, then NOC from that person

Source of income – Small business, salaried employee, pensioner
Kitchen and washroom mandatory in home.
The undertaking is not to sell a home before clearing all TMF installments.
Monthly installment should be at most 30% of their income.
The borrower will provide TMF with a valuation report from a certified valuer, and TMF will pay 70% of the total evaluated amount to construct the home.
A disbursement cheque will be issued in the name of the seller’s party.
The borrower should have a clear and marketable title, and the house and apartment should be no more than 45 years old.

The borrower should maintain the house in their spouse’s name.