House Building Finance Company Limited

The House Building Finance Company Limited (the Company) is an unlisted public company, incorporated in Pakistan on June 13, 2006 under the Companies Ordinance , 1984. The Registered office of the Company is situated at Finance and Trade Centre Shahrah-e-Faisal, Karachi. The Company has taken over all assets, running business, contracts, liabilities and proceedings of the House Building Finance Corporation (HBFC), established in 1952 under the House Building Finance Corporation Act 1952(XVIII OF 1952) by the Government of Pakistan from closing of the business on  December 31, 2006, the effective date, pursuant to a Vesting Order SRO.I/2007 dated July 25, 2007 issued by the Finance Division- Government of Pakistan. Accordingly, HBFCL is no longer a statutory institution.

To date, HBFCL has financed around 456,256 units for Rs.47.82 billion, successful recoveries of Rs.64 billion (inclusive of mark up) and has a housing portfolio of Rs.14.6 billion. At present the Company is handling over 77,666 operative accounts with a work force comprising of 951 officers and support staff. The Company operates throughout Pakistan including Azad Kashmir and Northern areas.

HBFCL Housing Finance Schemes

• Ghar Aasan Scheme – Product for on construction and purchase of houses based on diminishing Musharka, a Shariah compliant scheme.
• Shandar Ghar Scheme – Product for on repairs & renovation.
• Product for the small builder on construction and sale of small houses & apartment.
• Ghar Aasan Scheme (Flexi) for construction, purchase and renovation for houses & apartment.

Sharia Compliant Financing

HBFCL provides Sharia compliant financing to accommodate the low and middle income group providing financing for construction purchase of house or apartment, renovation of home loan transfer and Balance transfer fund.  As a result there are no hidden fees as in the case of non-Shariah complaint lending institutions.  Our fees are listed for your better understanding instead of being built into the cost of lending.

New Up-Coming Schemes

• Step-up-plan
• Savings and Loan Plan
• Equity Building Plan
• Construction Project Finance
• Residential Hostel Finance
• Home Finance for Overseas Pakistani
• Syndicated Finance for Large Construction Projects

Mega Housing Schemes

HBFCL is actively working in association with the Provincial Governments, Corporate Bodies, Industrial Estates, Development Authorities, and Public Sector Organizations to develop mega housing schemes comprising of small and medium housing units. NESPAK is working as HBFCL consultant for providing solutions for the housing shortage in the country, specifically for lower and middle income groups of the population. Along with Retail Housing Finance Products, HBFCL is focusing on bulk housing  as a part of the HBFCL mandate and in order to fulfill HBFCL’s social responsibility to the lower income strata of the population.

Overseas Pakistanis

HBFCL will be launching an online program for overseas Pakistanis in order to help overseas Pakistani’s purchase homes in Pakistan and so that overseas customers can earn reasonable returns on investment. Interested party can easily access information and apply online on HBFCL website.

HBFCL provides financing facilities and property related service, in locating suitable residential locations, evaluating the reliability of developer, perusal of the legal documentation, periodic visit to the project’s site, down payment booking details and completion of purchase transaction.

Other Housing Schemes

Housing  schemes are being introduced to rehabilitate the lower income socio economic strata . HBFCL is approaching Provincial Governments with a proposals to earmark land in suburbs of major cities starting with provincial capitals in order to achieve HBFCL’s mandate .

Payment of State Bank of Pakistan Credit Lines

Consequent to the direction of the Central Government to make the Company a self-sustained institution, all out efforts were directed towards achieving this objective. Despite of the fact that no fresh credit lines from SBP were available since 1992, HBFCL has been able to make following repayments to SBP by the due dates:

No payment after 15 January 2005 as in Treasures Department. 

The remaining amount of Rs. 1.243 billion is to be repaid over the next seven years with last payment is due in the year 2012. HBFCL expects itself to honor its obligation without much difficulty.

Credit Rating

JCR-VIS Credit Rating Company Limited has assigned initial medium to long-term entity rating of ‘A’ (single A) and short –term rating of ‘A-2’ (A-Two) to House Building Finance Company Limited (HBFCL)