Meezan Easy House Loan In Pakistan is a pioneering solution in Pakistan that transforms your dream of owning a home into reality.
At Meezan Bank, our Shariah-compliant approach ensures transparency and fairness through our Diminishing Musharakah structure, fostering a sense of joint ownership between you and the bank.
Our array of financing products, including Easy Buyer, Easy Builder, Easy Renovate, Easy Replace, and Easy Enhancement, cater to diverse housing needs, be it purchasing, constructing, renovating, or enhancing your property.
Moreover, our flexible payment plans, like the UMI and Step-up models, offer convenience and affordability throughout your financing journey.
Recommended Reading: Interest-free Home Loan In Pakistan {1Million-30Million} | House Loan In Pakistan
Which Bank Is Best For House Loan In Pakistan (Get 5-50 Lakh Home Loan) [Sharia Compliant]
Table of Contents
- Which Bank Is Best For House Loan In Pakistan (Get 5-50 Lakh Home Loan) [Sharia Compliant]
- Easy Home Financing with Meezan Bank
- Key Features of Meezan House Loan In Pakistan
- Eligibility Criteria For House Loan In Pakistan
- Meezan Easy Home Financing Products
- Payment Plans for Meezan Easy Home Financing
- Profit Rate for Meezan Easy Home Financing
- Shariah Compliance of Meezan Easy Home Financing
- Application Process for Meezan Easy Home Financing
- Processing Charges for Meezan House Loan In Pakistan
- Contact Details of Meezan Bank
- FAQs | House Loan In Pakistan
Easy Home Financing with Meezan Bank
Meezan Easy Home Financing provides a Shariah-compliant, interest-free House Loan In Pakistan solution for home financing needs. The financing model is based on Diminishing Musharakah, fostering joint ownership between the customer and Meezan Bank.
Unlike conventional loans, Easy Home operates on co-ownership principles rather than a loan agreement, ensuring Shariah compliance. Meezan Bank shares the property cost, establishing joint ownership, and gradually transferring ownership to the customer.
Recommended Reading: Home Loan In Pakistan {1Million-30Million}
Key Features of Meezan House Loan In Pakistan
- Highest Financing Amounts: Meezan Bank House Loan In Pakistan offers generous financing amounts, ensuring customers can secure the necessary funds for their dream home.
- Maximum Finance against Property Value: Customers can finance a significant portion of the property value, making it easier to purchase the home they desire.
- Flexibility to Make Partial Pre-payments: The financing solution allows for partial pre-payments, offering flexibility to reduce outstanding balances and overall financing costs.
- Shariah-Compliant Life Takaful Facility: Meezan Bank provides a Shariah-compliant life Takaful facility, giving customers insurance coverage that adheres to Islamic principles.
- Affordable Installments and Regularly Reducing Monthly Rental: The financing plan features affordable monthly installments, with the rental portion decreasing regularly as the customer’s equity in the property grows.
Eligibility Criteria For House Loan In Pakistan
- Citizenship: Meezan Bank’s House Loan In Pakistan is available to Pakistani nationals, both residents and non-residents, as per the bank’s policy.
- Age Criteria: Applicants and co-applicants must be within specific age ranges, with variations based on income clubbing and employment status. For example, the applicant and co-applicant (with income clubbing) must be between 25 and 65 years old, while a co-applicant without income clubbing must be between 21 and 70 years old. The applicant’s age should not exceed 65 years or the retirement age, typically considered as 60 years if not specified otherwise, for salaried individuals.
- Customer/Applicant: The financing allows for both primary (or single) and co-applicants, with the co-applicant being limited to immediate family members, including spouses, parents, adult children, brothers, and sisters.
- Income Criteria: Salaried individuals and self-employed professionals (SEPs) must meet specific minimum gross income requirements. For salaried individuals, the minimum is PKR 50,000 per month, with 100% of a co-applicant’s income allowed to be clubbed in the case of a spouse only. Self-employed individuals or businesspersons must have a minimum gross income of PKR 100,000 per month. Self-employed professionals include doctors, engineers, auditors, and architects. Contractual employees must earn a minimum of PKR 100,000 per month.
- Employment Tenure: Salaried individuals must have a permanent job with a minimum of 2 years of continuous work history in the same industry/field. Contractual employees must also have a minimum of 2 years of continuous work history in the same industry/field, along with a total experience of 4 years. Self-employed individuals or businesspersons must have a minimum of 3 years in the current business/industry.
Recommended Reading: House Loan In Pakistan {1Million-30Million}
Meezan Easy Home Financing Products
- Easy Buyer: Opt for Easy Buyer for a hassle-free, ready-to-move-in home financing solution.
- Easy Builder: Build your dream home with ease using Easy Builder, the perfect financing option for construction projects.
- Easy Renovate: Upgrade or repair your home effortlessly with Easy Renovate, designed for renovation financing.
- Easy Replace: Transfer your current mortgage to Meezan Bank with Easy Replace, simplifying your financing arrangements.
- Easy Enhancement: Modify and improve your existing facility with Easy Enhancement, tailored to accommodate your changing needs.
Payment Plans for Meezan Easy Home Financing
UMI Model:
Based on the concept of Diminishing Musharakah, where the bank and customer enter into a Musharakah Agreement and both provide investments for property purchase/construction/renovation.
Joint ownership is established in the property between the bank and the customer. The bank’s share is divided into units given to the customer on rent, and the customer purchases the bank’s share (units) over the transaction tenure.
Step-up Model:
Designed for customers seeking maximum financing with lower initial installments, based on a Shariah-compliant Diminishing Musharakah structure.
The monthly installment in the initial years is lower, making it more affordable. It provides a Shariah-compliant option for customers seeking maximum financing from the bank.
Profit Rate for Meezan Easy Home Financing
Meezan Bank’s profit margin is determined by market trends to offer competitive rates, aligning with Shariah principles that allow the use of conventional market factors as benchmarks for profit rate determination.
- For Salaried Customers:
- Variable Pricing Rate:
- Fixed for 1st Year: KIBOR (Karachi Inter Bank Offer Rate) + 3.00% p.a.
- Annual Re-pricing: KIBOR + 3.00% p.a. (Floor 8.00% p.a. and Cap 30% p.a.)
- ‘K’ denotes KIBOR, announced on the 1st working day of each calendar month, for the first-year Fixed Rate.
- Applicable KIBOR will be the 12-month KIBOR announced on the first working day of the month of profit rate revision.
- For Businessmen Customers:
- Variable Pricing Rate:
- Fixed for 1st Year: KIBOR + 4.00% p.a.
- Annual Re-pricing: KIBOR + 4.00% p.a. (Floor 8.00% p.a. and Cap 30% p.a.)
- ‘K’ denotes KIBOR, announced on the 1st working day of each calendar month, for the first-year Fixed Rate.
- Applicable KIBOR will be the 12-month KIBOR announced on the first working day of the month of profit rate revision.
Shariah Compliance of Meezan Easy Home Financing
- Diminishing Musharakah Structure: Easy Home operates under the Diminishing Musharakah, adhering to Shariah laws concerning financing, ownership, and trade.
- Joint Ownership and Transfer of Ownership: Joint ownership is established, and ownership gradually transitions to the customer, ensuring compliance with Shariah principles rather than just lending money.
- Financing Terms: Meezan Bank provides financing up to 65% and 75% of the property value for businessmen and salaried individuals, respectively.
- Monthly Payment Structure: Customers agree to a monthly payment to the bank, part of which is for using the house and part for purchasing the bank’s share in the house.
- Ownership Transition: Upon completing the agreed-upon payments, the customer becomes the sole owner with a clear title to the property.
- Profit as Payment for Use: The profit charged by the bank is considered payment for using its share of the house during the contract’s duration.
Application Process for Meezan Easy Home Financing
- Submit a filled and signed application form to Meezan Bank along with the required cheque for Processing Fees & External Agency costs.
- Attach the required documents with your application.
- Meezan Bank will verify your residential/office addresses.
- For Salaried Self-Employed professionals/businessmen, Meezan Bank will conduct necessary credit assessments and associated due diligence based on provided information.
- Meezan Bank will obtain a legal opinion on the property documents provided by you.
- Meezan Bank’s appointed valuation agency will evaluate the property to determine its market value.
- After fulfilling all credit requirements, Meezan Bank will issue a conditional offer letter.
- Upon approval, open an account at Meezan Bank.
- After approval and account opening, sign the Islamic House Finance Agreement and other legal documents at Meezan Bank.
- A Meezan Bank officer and authorized lawyer will accompany you and the seller of the property to the appropriate bank or registrar’s office for property transfer.
Recommended Reading: Interest-free Home Loan In Pakistan {1Million-30Million} | House Loan In Pakistan
Processing Charges for Meezan House Loan In Pakistan
- Type of Charges:
- Salaried: PKR 8,000
- Businessmen: PKR 8,000
- FED on Processing Charges @ 16%:
- Salaried: PKR 1,280
- Businessmen: PKR 1,280
- Legal Report Charges: Charged at actual cost.
- Property Valuation Charges: Charged at actual cost.
- Income Estimation Charges: Not applicable for salaried individuals; charged at actual cost for businessmen.
Contact Details of Meezan Bank
- Website: https://www.meezanbank.com/
- Phone: +92 (21) 38103500 & +92 (21) 37133500
- Email: info@meezanbank.com
- Address: Meezan Bank Limited, Meezan House, C-25 Estate Avenue, SITE, Karachi.
FAQs | House Loan In Pakistan
What is the financing structure offered by Meezan Bank House Loan In Pakistan?
Meezan Bank offers a House Loan In Pakistan through the Diminishing Musharakah structure, ensuring compliance with Shariah laws related to financing, ownership, and trade.
How does joint ownership work in the Easy Home financing program?
Joint ownership is created between the bank and the customer, with ownership gradually transferred to the customer instead of just lending money, ensuring Shariah compliance.
What are the financing terms for House loans in Pakistan?
Meezan Bank finances up to 65% and 75% of the property value for businessmen and salaried individuals, respectively.
How is the monthly payment structured for House loans in Pakistan?
Customers agree to a monthly payment to the bank, part of which is for using the house and part for purchasing the bank’s share in the house.
What happens upon completing the agreed-upon payments for Easy Home?
Upon completing the payments, the customer becomes the sole owner with a free and clear title to the property.
How is profit charged for House loans in Pakistan?
Profit charged for House loan in Pakistan: The profit charged by the bank is considered payment for using its share of the house during the contract’s life.
What are the charges associated with applying for House Loan In Pakistan?
Charges associated with applying for a House Loan In Pakistan:
Salaried: PKR 8,000
Businessmen: PKR 8,000
Is there any additional charge on the processing fee for Easy Home financing?
Yes, Federal Excise Duty (FED) on Processing Charges is applicable at 16%:
Salaried: PKR 1,280
Businessmen: PKR 1,280
Are there any charges for income estimation for House loans in Pakistan?
Not applicable for salaried individuals; charged at actual cost for businessmen.
Recommended Reading: Interest-free Home Loan In Pakistan {1Million-30Million} | House Loan In Pakistan
If you like this article, please comment and share this article with others on Facebook, WhatsApp, or any other platform.
Have any questions or need further details? Please don’t hesitate to reach out to us at Info@governmentschemes.pk!
Add a Comment