KARACHI, Feb 22: The House Building Finance Corporation (HBFC) has started its new investment scheme — Ghar Aasan — based on ‘Diminishing Musharaka or partnership,’ and initially it will remain confined to Karachi, Lahore, Islamabad and Rawalpindi.

The new scheme is a Shariah-compliant investment scheme and is being launched in the wake of promulgation of HBFC (amendment) Ordinance-2001, announced on Nov 23, 2001.

Under this mode of financing the corporation will enter into an agreement with a partner for construction or purchase of a house on the basis of joint ownership and will share in the rent of the house in proportion to its investment and in the appreciation of value of the house.

The final valuation of the house will, however, be made for final sharing of profit and loss at the time of termination of partnership.

The HBFC’s investment will be divided into equal yearly units. Each unit will be purchased by the partner at pre-agreed price every year until all units held by the corporation are purchased or transferred to the partner and the house is fully owned by him.

Under this scheme, any transaction of sale or transfer through general power of attorney or any other instrument, which has not been permitted by the corporation in writing will be void.

In case partner fails to pay the share in the rental income, he will undertake to pay to the corporation an amount at two per cent per month or part thereof worked out on monthly basis for each payment delayed beyond 15 days. The amount so realized will be used for charitable and other purposes permissible under Shariah and will not be booked in income account of the corporation.

The HBFC will share with partner the losses caused by the natural calamities, war or civil commotion. The liability of HBFC will be determined on the basis of its share of investment at the time the loss occurs and will not exceed the outstanding amount of investment.

The partner will be given in advance a printed schedule of monthly repayments indicating rent payable during moratorium period and monthly quantum of instalment which would be inclusive of rent, unit purchase price and insurance premium. This will facilitate him to know in advance as to how much total amount he will have to repay to the corporation during entire repayment period allowed to him.

The HBFC has also launched an in-house designed website (www.hbfc.com.pk). The site contains frequently asked questions in English or Urdu and specimen of loan application forms in both the languages. The facility will also be available to partners to access their account information through the internet using secure access code.