KARACHI, June 19: Pakistan Industrial Credit and Investment Corporation (PICIC) on Saturday launched a housing finance scheme "Apnay Ghar Ka Khawab".

Speaking at the launching of the scheme, PICIC Managing Director Muhammad Ali Khoja said that the corporation had earmarked Rs1 billion for the scheme for the remaining six months of 2004.

He pointed out that PICIC had so far disbursed Rs1 billion under housing finance since April 2003.

About the salient features of this scheme, he said that financing could be obtained for the purchase of constructed house and flat as well as renovation of house or flat.

The scheme also offers loan for refinance of house and flat, purchase of land and construction of house and flat.

He said that initially the scheme would be limited to five cities including Karachi, Lahore and Islamabad but extended to other cities and towns.

Khoja said that decision was in compliance with government's plan of home ownership for everyone through easy instalments designed to match customers needs.

He said the mark-up rate was very competitive compared to other housing finance schemes offered by other banks and financial institutions in the country.

Khoja said that the maximum limit for housing finance would be Rs10 million with easy monthly instalments spread up to 20 years. The term of repayment can be negotiated depending on the requirement of customers.

He said the debt-equity ratio would be 20:80 against the valuation of the property.

He claimed that processing of the loan application would be faster with no processing cost and no hidden cost.

The scheme has the added advantage of clubbing option between the applicant and co-applicant by giving a benefit of age and income.

Talking about the future strategy for the scheme, he said that marketing of the scheme would be conducted through a selective 1000 property dealers network on a nation-wide basis.-APP