KARACHI, July 3: House Building Finance Corporation (HBFC) has announced a relief package 2004 for those borrowers, who, for various reasons, could not maintain regularity in housing loan repayments.

Managing director HBFC Sohail Usman Ali while explaining the package here on Saturday said that those borrowers obtained loans under old housing finance schemes launched between July 1, 1979 to June 30 2000, can benefit from these schemes.

He said that this package, which is in line with the announcement in the federal budget 2004-2005, has been divided into two parts, one dealing with time expired cases and the other with time remaining cases.

For time expired cases, the Corporation has frozen the outstanding amount as on June 30, 2004. Furthermore, HBFC would not recover additional profit on these frozen amount and the defaulted amount could be repaid in 36 equal monthly instalments from July 1, 2004 through post-dated cheques of equal amount.

Sohail said that no recovery action would be initiated during this period unless the customer again dishonour the new arrangements. In this case, the defaulter would have to face a usual recovery action, he said.

With respect to time remaining cases, HBFC has decided that the balance due as on June 30, 2004 would be paid in equal instalments over the remaining period of the loan.

The Corporation has also reduced mark up rate from 17 per cent to 10 per cent (effective from July 1, 2004) over the remaining period of loan.

He said that the amount was to be repaid by deposits of past-dated cheques and signing of a modification agreement with HBFC.

Similarly, no recovery action would be taken during this period unless the customer defaulted under the new agreements. In this case, he has to face usual recovery action.

Sohail expressed the hope that HBFC customers would avail this facility and ensure repayments at the due dates.-APP