Saibaan Comprehensive Presentation

7/31/2019 Saibaan Comprehensive Presentation

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NNationalationalBBank ofank ofPPakistanakistan

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Product Policy &Product Policy &

ParametersParameters


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Home Purchase Loan : Financial assistance being acquiredunder the NBP Mortgage Financing for the purchase ofready residential property House or Apartment.

Max. Loan amount: Rs. 35 Million

Tenure : 3 to 20 years

Debt to equity 85:15

Home Construction Loan: Financial assistance beingacquired under the NBP Mortgage Financing by mortgagingself owned residential land, which may be open or partially

constructed upon, for construction purposes leading toself-occupancy

Max. Loan amount: Rs.35 Million

Tenure: 3 to 20 years



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Home Improvement Loan: Financial assistance beingacquired under the NBP Mortgage Financing by mortgagingself owned & self occupied ready residential property -House or Apartment, for renovation purposes

Max. Loan amount: Rs. 15 million

Tenure : 3 to 15 years


Balance Transfer Facility : Provide facility to those

customers who have already availed housing finance fromsome other banks and they intend to switch their loans toNBP.


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PRICINGPRICING

VARIABLE RATE (WITH INSU) 12.50%

VARIABLE RATE (WITHOUT INSU.) 14.50%

All applicants must be Pakistani resident nationals ,CNICAll applicants must be Pakistani resident nationals ,CNIC

holder, having clean CIB/Data Check report andholder, having clean CIB/Data Check report and

maintaining salary/current A/c (if not, then A/c to bemaintaining salary/current A/c (if not, then A/c to be

opened at NBP branch before finance disbursement).opened at NBP branch before finance disbursement).

ELIGIBILITYELIGIBILITY


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Type A:Ty

pe A: Salaried Class (Further divided into Two Categories)Salaried Class (Further divided into Two Categories)

First Category A1:First Categ

ory A1:

All permanent and confirmed employees of Federal, ProvincialAll permanent and confirmed employees of Federal, Provincial

Govt., Semi-Govt., Autonomous, Semi-autonomous, Local andGovt., Semi-Govt., Autonomous, Semi-autonomous, Local and

other bodies, whose salaries are/or shall be disbursed throughother bodies, whose salaries are/or shall be disbursed through

NBP branches and whose employers are willing to giveNBP branches and whose employers are willing to give

undertaking on NBPs prescribed format. These will also includeundertaking on NBPs prescribed format. These will also include

permanent employees of NBP.permanent employees of NBP.

TARGET MARKETTARGET MARKET


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Second Category A2:Second Categ

ory A2:

All other salaried class employees, including:All other salaried class employees, including:

Permanent Employees of Multinational Companies,Permanent Employees of Multinational Companies,

scheduled banks and reputed companies that have beenscheduled banks and reputed companies that have been

approved by NBP for Saibaan.approved by NBP for Saibaan.Permanent employees of organizations other than thePermanent employees of organizations other than the

approved list.approved list.

Contractual employees of the above categories includingContractual employees of the above categories including

NBP employees.NBP employees.Employees defined in category A1 but fail to qualifyEmployees defined in category A1 but fail to qualify

because their employer is not willing to give the requiredbecause their employer is not willing to give the required

undertaking or whose salary is or will not be disbursedundertaking or whose salary is or will not be disbursed

through NBP branches or is requesting for mode ofthrough NBP branches or is requesting for mode of

repayment other than deduction from salaryrepayment other than deduction from salary



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Applicants employment/business/profession shall not be partApplicants employment/business/profession shall not be part

of Negative professions. Here profession means that theof Negative professions. Here profession means that the

applicants main source of income is from these professions.applicants main source of income is from these professions.

Approved organizations, corporate arrangements approved byApproved organizations, corporate arrangements approved by

H.O., and where employer undertaking of Govt. and relatedH.O., and where employer undertaking of Govt. and related

organizations (on NBP format for A-1 Category) is availableorganizations (on NBP format for A-1 Category) is available

are exempt from the negative professions list.are exempt from the negative professions list.

Secondly, relevant RBC can also recommend a customerSecondly, relevant RBC can also recommend a customer

classified as employed in negative profession for the reviewclassified as employed in negative profession for the review

and approval of the competent authorityand approval of the competent authority



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Type BType B

Business PersonsBusiness Persons

(Minimum Income:Net Take Home>=Rs 15,000)

SelfEmployed ProfessionalSelfEmployed Professional

(Minimum Income:Net Take Home>=Rs 15,000)

1.1. Sole ProprietorSole Proprietor

2.2. PartnerPartner

3.3. Director of a reputedDirector of a reputedbusiness/companybusiness/company

Doctor, Engineer, DesignerDoctor, Engineer, Designer

Architect, Chartered AccountantArchitect, Chartered Accountant

Cost & Management AccountantCost & Management Accountant



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Co-Applicants:Co-Applicants:

Only spouse, parents & adult male children can beOnly spouse, parents & adult male children can beco-applicant. The co-applicants income may beco-applicant. The co-applicants income may be

clubbed. In case where co-applicants income is beingclubbed. In case where co-applicants income is beingclubbed, then he / she should also fall in theclubbed, then he / she should also fall in the

prescribed age bracket for his / her category. Theprescribed age bracket for his / her category. The

upper age for co-applicant to be 65 years, at the timeupper age for co-applicant to be 65 years, at the time

of the maturity of the finance, where co-applicant is aof the maturity of the finance, where co-applicant is a

non-earning member.non-earning member.


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For Type A1 Salaried class category (Govt.For Type A1 Salaried class category (Govt.

employees) minimum net take home income ofemployees) minimum net take home income of

Rs.5,000. (Employer will ensure mode of repayment ofRs.5,000. (Employer will ensure mode of repayment of

salary/installment transfer).salary/installment transfer). For rest of the salariedFor rest of the salaried

class, minimum net take home income of Rs.10,000 willclass, minimum net take home income of Rs.10,000 will

be required.be required. For Type B (Business Persons and Self-For Type B (Business Persons and Self-

Employed) minimum net take home income required isEmployed) minimum net take home income required isRs.15,000Rs.15,000

INCOME:INCOME:


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Application Processing Fee*Application Processing Fee*

CategoryCategory FeesFees

Government employeesGovernment employees Rs. 500/=*Rs. 500/=*

For others, amount up toFor others, amount up toRs. 1 MillionRs. 1 Million

Rs. 1,000/=*Rs. 1,000/=*

For others, amountFor others, amountBetween Rs. 1 Million toBetween Rs. 1 Million to

4 Million4 Million

Rs. 3,000/=*Rs. 3,000/=*

For others, amount moreFor others, amount morethan Rs. 4 Millionthan Rs. 4 Million

Rs. 6,000/=*Rs. 6,000/=*

*Above fees are market based and subject to change from time to time*Above fees are market based and subject to change from time to time*Above fees are market based and subject to change from time to time*Above fees are market based and subject to change from time to time


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External Agencies Fee*External Agencies Fee*

*Above fees are market based and subject to change from time to time.*Above fees are market based and subject to change from time to time.**External Agencies Fee is only refundable if not utilized at any stage of the process.**External Agencies Fee is only refundable if not utilized at any stage of the process.

Income Estimation Fee:**Income Estimation Fee:**

Agency Name:M/s AnjumAgency Name:M/s AnjumAsim Shahid RehmanAsim Shahid Rehman

Intl Credit Information LtdIntl Credit Information Ltd(ICIL)(ICIL)

Loan AmountLoan AmountUptoUpto

3 Lac to 15 M3 Lac to 15 M

Fees*Fees*

Rs. 2,500/=Rs. 2,500/=

Lawyer Fee:**Lawyer Fee:**

Agency Name: M/sAgency Name: M/sMandviwalla & ZafarMandviwalla & Zafar

Ahmed & QaziAhmed & Qazi

First Stage(DocumentFirst Stage(DocumentReview)SecondReview)SecondStage(Charge Registration,Stage(Charge Registration,etcetc

Fees*Fees*

Rs. 1,500/=Rs. 1,500/=

Rs. 3,500Rs. 3,500

Valuators Fee:**Valuators Fee:**

Agency Name:M/s JosephAgency Name:M/s JosephLobo (Pvt) LtdLobo (Pvt) Ltd

Purchase/ImprovementPurchase/ImprovementConstruction:(Initial fee)ForConstruction:(Initial fee)Forany further visitsany further visits

Fees*Fees*Rs. 3,000/=Rs. 3,000/=

Rs. 5,000/=Rs. 5,000/=

Rs. 1,500/= (cost perRs. 1,500/= (cost pervisit)visit)


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LIST OF NEGATIVE PROFESSIONSLIST OF NEGATIVE PROFESSIONS LawyersLawyers Journalists (Publishers & Editors can be looked on case to case basis).Journalists (Publishers & Editors can be looked on case to case basis). Agriculturists unless where agriculture income is the main source of incomeAgriculturists unless where agriculture income is the main source of income Law enforcement personnelLaw enforcement personnel

Commission based business e.g. stockbrokers, real estate agents,Commission based business e.g. stockbrokers, real estate agents,commodity brokers.commodity brokers.

Business involved in rental business.Business involved in rental business. Business involved in giving away goods on loans or installments.Business involved in giving away goods on loans or installments. Speculative business i.e. property buying & selling, stock purchase andSpeculative business i.e. property buying & selling, stock purchase and

selling.selling.

Government contractors / suppliers dealing with or owing money to GoP.Government contractors / suppliers dealing with or owing money to GoP. Construction related business where there is no permanent office.Construction related business where there is no permanent office. Auto dealers / auto rentals.Auto dealers / auto rentals. Transporters.Transporters. People related to entertainment business.People related to entertainment business.

Jewelers (smaller ones only)Jewelers (smaller ones only) Politicians or politically connected peoplePoliticians or politically connected people.


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Major Terms & ConditionsMajor Terms & Conditions

AgeAge

65 yrs at the time65 yrs at the time

of loanof loan

maturity.maturity.

21 yrs to 62 yrs at21 yrs to 62 yrs at

the time ofthe time of

applying.applying.

Businessperson /Businessperson /

Self-EmployedSelf-Employed

ProfessionalProfessional

59 yrs and 6 mths59 yrs and 6 mths

at the time ofat the time of

loan maturity.loan maturity.

22 yrs 56 yrs and22 yrs 56 yrs and

6 mths at the6 mths at the

time oftime of

applying.applying.

SalariedSalaried

MaximumMaximumMinimumMinimum


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Maximum Loan Amount / TenorMaximum Loan Amount / Tenor

Loan TenorLoan Tenor

MaximumMaximum

LoanLoan

AmountAmount

Rs. 15mRs. 15mRs. 35mRs. 35mRs. 35 mRs. 35 m

3 15 Years3 15 Years3 20 Years3 20 Years3 203 20

YearsYears

HomeHome

ImprovementImprovement

HomeHome

ConstructionConstruction

HomeHome

PurchasePurchase


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Debt Burden RatioDebt Burden Ratio

Debt burden is defined as the sum total of external debt repaymentsDebt burden is defined as the sum total of external debt repayments

divided by the net income:divided by the net income:

Debt RepaymentDebt RepaymentDebt Burden = --------------------------------Debt Burden = --------------------------------

Net take home salary (or NetNet take home salary (or Net

Income)Income)

Type A 1st Category:Type A 1st Category: Monthly instalment of all the loans deductibleMonthly instalment of all the loans deductible

from the salary credited to account at NBP not to exceed 50% of thefrom the salary credited to account at NBP not to exceed 50% of thenet take home salary*.net take home salary*.

Type A 2Type A 2ndnd Category:Category: Monthly instalment shall not exceed 50% of theMonthly instalment shall not exceed 50% of the

net take home salary*.net take home salary*.

Type B:Type B: Debts repayment (under the subject loan) not to exceedDebts repayment (under the subject loan) not to exceed

50% of the net Income.50% of the net Income.

Debt burden is defined as the sum total of external debt repaymentsDebt burden is defined as the sum total of external debt repayments

divided by the net income:divided by the net income:

Debt RepaymentDebt RepaymentDebt Burden = --------------------------------Debt Burden = --------------------------------

Net take home salary (or NetNet take home salary (or Net

Income)Income)

Type A 1st Category:Type A 1st Category: Monthly instalment of all the loans deductibleMonthly instalment of all the loans deductible

from the salary credited to account at NBP not to exceed 50% of thefrom the salary credited to account at NBP not to exceed 50% of thenet take home salary*.net take home salary*.

Type A 2Type A 2ndnd Category:Category: Monthly instalment shall not exceed 50% of theMonthly instalment shall not exceed 50% of the

net take home salary*.net take home salary*.

Type B:Type B: Debts repayment (under the subject loan) not to exceedDebts repayment (under the subject loan) not to exceed

50% of the net Income.50% of the net Income.


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Length of EmploymentLength of Employment

Type A:Type A: Minimum 2 years with the same employer for all applicantsMinimum 2 years with the same employer for all applicantsof salaried classof salaried class

If it is less than 2 years, then a past record of collective andIf it is less than 2 years, then a past record of collective andcontinuous employment of three (3) years should be made available.continuous employment of three (3) years should be made available.

Type B:Type B: Length of occupation to be minimum three (3) year.Length of occupation to be minimum three (3) year.

The customer should have service age remaining equal to the tenure of the loan and aThe customer should have service age remaining equal to the tenure of the loan and acushion period of six months (that is, 6 months beyond maturity of the loan).cushion period of six months (that is, 6 months beyond maturity of the loan).


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Property EligibilityProperty Eligibility

Property should be an already constructed House or Apartment.

Should be having a separate title document and a leased one.

Title document must be clear and chain of documents complete.Property can be co-owned by family members (spouse, parents,and adult male children).

The property should be purely residential and self occupied.

Purchase of property from parents, siblings and spouse is notallowed.Special Conditions Related To Home Construction Finance:

In order to be eligible for this product, the customer must be the owner of the land onwhich construction or/and extension is to take place.


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SecuritySecurity For security purposes, the property for the purchase / construction/

renovation of which the financing is being provided, will be mortgaged.

Mortgage will be created jointly in case of co owners. Joint ownership with

other than spouse/ parent / adult male children not allowed.

1 % token Registered of the finance amount and balance, as Equitable

(reasonable) Mortgage will be created on the property. However, onlyEquitable Mortgage will be created on the properties financed at Karachi,

Lahore, Islamabad & Rawalpindi.

All the original property documents are to be reserved by the bank and

charge to be created and registered with the Registrar of

Documents/Assurance.

The bank will also give three undated cheques in favour of NBP. Each check

will amount to one finance instalment

There should be no previous lien / claim on the property and Search

Certificate to be obtained.

No Certified True Copies of Title documentsNo Certified True Copies of Title documents


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Turnaround Time (TAT)

Solicitation {Documentation} Not Applicable

Submission and Processing 2 days (Pre-approval)

Processing and Region(EAMU) 10 days

Credit Review & Approval at HO 7 days

Disbursal Processing 3 days


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LAWYER FEE

M/s Mandviwalla & Zafar / M/s Hashmat Law Associates /

M/S Sardar Law Associates / Noor Muhammad Chandia

First Stage (Document Review) Rs. 1,500/=

Second Stage(Charge Registration, etc) Rs. 3,500/=

*Above fees are market based and subject to change from time to time


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INCOME ESTIMATORS FEE

M/s Anjum Asim Shahid Rehman

Fees*

Rs. 2,500/=

M/s International Credit Information Ltd.

Fees*

Rs. 2,500/=

Note:- If Finance amount is more than 15 M both income estimation

companies will appraise the income.



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VALUATORS FEE

M/s Surval / NPM / Projects

Service Fees*

Purchase/Improvement Rs. 3,000/=

Construction (Initial fee) Rs. 2,000/=

For any further visit Rs. 1,000/=



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Insurance Companys Fee

EFU Insurance Company (Property Insurance)

0.055% of the Loan Amount

ALICO

0.525% of the outstanding loan amount.


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EARLY REPAYMENTThe customer, at any point of time, may use the right to fully or partially

pay the finance

Customer will provide a written request for early repayment to the

concerned Hub Branch that will be sent to the HO, subject to early

repayment penalty in line with

a)Partial Redemption (Balloon Payment) / Full Redemption within

5 years - 2% of the amount being prepaid

b)Full/Partial Redemption beyond 5 years - 0%

A balloon payment case will be directed to the HO for amendmentsthat may be required in the repayment schedules. The HO will

approve a revised system generated repayment schedule and send to

the concerned Retail Officer/Branch Manager at the Hub Branch, who

will obtain signed customer acceptance


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E. POLICY DEVIATION:

Hub Branches and Regions are required to forward,

along with their recommendations, all those cases which

have issues relating to policy deviation. If Hub Branch or

Region does not favor recommendation, they still have to

send these cases to Head Office along with the reasons for

not recommending the case. Only Head Office has the

authority to approve or disapprove any case with policy

deviations.


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Forwarding of Cases to Head OfficeForwarding of Cases to Head Office

In those cases where the legal, valuation and physicalIn those cases where the legal, valuation and physical

verification reports are satisfactory, the Hubverification reports are satisfactory, the Hub

branches/Regional EAMUs are required to send thosebranches/Regional EAMUs are required to send thosecases immediately to Head Office even some othercases immediately to Head Office even some other

formalities such asformalities such as NIC, Utility Bills, Credit Card BillsNIC, Utility Bills, Credit Card Bills

etc have not been fulfilled by the customer. However,etc have not been fulfilled by the customer. However,

these formalities and including others should bethese formalities and including others should becompleted before the disbursement of the loan.completed before the disbursement of the loan.


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Concept of Hub & Referral Branches:

All NBP branches throughout Pakistan will act as referralbranches and can refer their NBP-Saibaan cases to Hub

branches however, the property has to be located in the

cities where NBP-Saibaan is being offered through Hub

branches.


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2. Employer Undertaking:2. Employer Undertaking:As per IC # 11/2004 dated 20-01-2004 employer undertakingAs per IC # 11/2004 dated 20-01-2004 employer undertaking

is must for A-1 category and those applicants of A-2is must for A-1 category and those applicants of A-2

category who are employed with Multi-national andcategory who are employed with Multi-national and

approved companies.approved companies.

Now this requirement of undertaking is being relaxed.Now this requirement of undertaking is being relaxed. ThatThat

is, those applicants of A-1 category who are unable tois, those applicants of A-1 category who are unable to

provide their employer undertaking will be treated in A-2provide their employer undertaking will be treated in A-2

category as mentioned above in the Target Market.category as mentioned above in the Target Market.However, salaries of A-1 category should be disbursedHowever, salaries of A-1 category should be disbursed

through NBPthrough NBP, if not, then they will be treated in A-2 as, if not, then they will be treated in A-2 as

mentioned above in Target Market.mentioned above in Target Market.


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PROPERTY LOCATION:

The property being financed has to be located in the city where

the Hub Branch is located this must be strictly ensured.

However, release is allowed only between following Regions:

1.Between Karachi South & Karachi West2.Between Lahore Central & Lahore East

For example, a salary account holder of Margalla Road

Branch, Islamabad is purchasing a house in Rawalpindi, in this

case, although the property is located in Rawalpindi, but theloan can be booked at any Hub Branch of Islamabad Region

i.e. at the customers option.


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9. Execution of Sales Deed:

In case of Home Purchase the Sale Deed to be

executed should not be less than the official

property value of that area as prescribed by thegovernment. Same is applicable for Home

Construction cases where land / partial structures

for construction is being purchased.


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Customer Request LetterCustomer Request Letter

To be submitted in case the Loan is declined and the applicant stillTo be submitted in case the Loan is declined and the applicant still

insists to process the case.insists to process the case.

A letter (A letter (Annexure BAnnexure B) has been developed to) has been developed tosafeguard and indemnify NBP from any futuresafeguard and indemnify NBP from any future

claims by the applicant for refund of fees of theclaims by the applicant for refund of fees of the

External Agency, if his/her application is declinedExternal Agency, if his/her application is declined

due to the following and he/she still insist to forwarddue to the following and he/she still insist to forwardthe case to Head Office for special consideration:the case to Head Office for special consideration:
http://var/www/apps/conversion/current/Farhad/Office/SALARY%20FACTORING/Presentations%20for%207%20to%2017%20September%202005/Annexure-B.dochttp://var/www/apps/conversion/current/Farhad/Office/SALARY%20FACTORING/Presentations%20for%207%20to%2017%20September%202005/Annexure-B.dochttp://var/www/apps/conversion/current/Farhad/Office/SALARY%20FACTORING/Presentations%20for%207%20to%2017%20September%202005/Annexure-B.doc


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Data Check is negative.Data Check is negative.CIB (SBP) is negative.CIB (SBP) is negative.

Medical Report is not satisfactory.Medical Report is not satisfactory.Legal Opinion states that the property is notLegal Opinion states that the property is not

mortgagable or other reasons etc.mortgagable or other reasons etc.

Valuation is negative.Valuation is negative.

Income Estimation states that the applicant isIncome Estimation states that the applicant isunable to come up with the required installments.unable to come up with the required installments.

>>>In such scenarios and circumstances Loan>>>In such scenarios and circumstances Loan

approval will be subject to Competent Authoritysapproval will be subject to Competent Authoritys

decision on the case.decision on the case.

Customer Request LetterCustomer Request Letter

To be submitted in case the Loan is declined and the applicant stillTo be submitted in case the Loan is declined and the applicant stillinsists to process the case.insists to process the case.


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Purchase of Land for ConstructionPurchase of Land for Construction

Financing for both, Purchase of land or partially constructed houseFinancing for both, Purchase of land or partially constructed house

as well as Construction on it.as well as Construction on it.

Currently, NBP is offering financing for purchase,Currently, NBP is offering financing for purchase,construction and renovation of homes. Many banksconstruction and renovation of homes. Many banks

in Pakistan have also started financing for bothin Pakistan have also started financing for both

purchase of land and construction on it. In order topurchase of land and construction on it. In order to

stay competitive, it has been decided thatstay competitive, it has been decided that NBP willNBP will

now offer financing for this with maximumnow offer financing for this with maximum

Debt/Equity ratio of 70:30.Debt/Equity ratio of 70:30.


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In this connection,In this connection, the sanctioned loan limit,the sanctioned loan limit,

assessed on the basis of repayment capacity of theassessed on the basis of repayment capacity of the

borrower, value of land / plot and cost ofborrower, value of land / plot and cost of

construction on it etc.,construction on it etc., should be disbursed inshould be disbursed in

tranches, with up to a maximum of 50% of the loantranches, with up to a maximum of 50% of the loan

limit can be disbursed for the purchase of land /limit can be disbursed for the purchase of land /

plot, and the remaining amount be disbursed forplot, and the remaining amount be disbursed for

construction there-upon.construction there-upon.





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As noted above, 50% of the approved financeAs noted above, 50% of the approved finance

amount will be disbursed initially for the purchaseamount will be disbursed initially for the purchase

of the land with the banks charge on the propertyof the land with the banks charge on the property

to be created immediately.to be created immediately. The remaining balanceThe remaining balance

for construction on the same plot will be disbursedfor construction on the same plot will be disbursedin 4 (four) tranches as currently being followed inin 4 (four) tranches as currently being followed in

Home Construction cases:Home Construction cases:


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StageStage Construction StatusConstruction Status Finance DisbursementFinance Disbursement

ScheduleSchedule

11 FoundationFoundation 20% (of remaining 50%)20% (of remaining 50%)

22 Ground & Upper FloorGround & Upper Floor

ConstructionConstruction40% (of remaining 50%)40% (of remaining 50%)

33 Electric, Plumbing &Electric, Plumbing &

Wood WorkWood Work20% (of remaining 50%)20% (of remaining 50%)

44 FinishingFinishing 20% (of remaining 50%)20% (of remaining 50%)





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Construction should start within 6 months afterdisbursement of first 50% of the approved finance

amount. The total construction period should not

exceed 15 months inclusive of the initial 6 months.

During this period i.e. 15 months, customer will onlybe paying mark-up on the amount disbursed.


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Full installment payment complete of Principle payment will

start from the 16th month or completion of construction,whichever is earlier. In order to assess the value of

construction, which will form an integral part of loan

assessment, customer will be required to submit a realistic

Bills of Quantity (BOQ) on the Banks approved format, at

the time of applying for the finance which will be duly

approved by the Banks Valuator. Each subsequent tranche

will be disbursed only after receiving satisfactory valuation

report (Example).


Financing for both, Purchase of land or partially constructed house as well asFinancingfor both, Purchase of land or partially constructed house as well as

Construction on it.Construction on it.
http://var/www/apps/conversion/current/Farhad/Office/SALARY%20FACTORING/Presentations%20for%207%20to%2017%20September%202005/Example.dochttp://var/www/apps/conversion/current/Farhad/Office/SALARY%20FACTORING/Presentations%20for%207%20to%2017%20September%202005/Example.doc


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Financing for both, Purchase of land or partially constructed house as well asFinancingfor both, Purchase of land or partially constructed house as well as

Construction on it.Construction on it.

Additionally, the bank will also finance partially constructed

structures with maximum Debt/Equity ratio of 70 : 30. Loanassessment in these cases will include value of land, cost of

current partial structure and the further cost required to

complete the property. BoQ submission is also required here

to project remaining construction cost.


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Initiating for Legal Opinion, Property ValuationInitiating for Legal Opinion, Property Valuation

and Income Estimationand Income EstimationHub Branch to perform some of the functions of Regional EAMU Office.Hub Branch to perform some of the functions of Regional EAMU Office.

It has been decided thatIt has been decided that apart from already assignedapart from already assigned

functions as per above mentioned circulars, Hub Branchfunctions as per above mentioned circulars, Hub Branch

will also do some of the functions of Regional EAMUwill also do some of the functions of Regional EAMU

Office which are outlined below:Office which are outlined below:


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1.1. Generate request for Data Check and e-CIB to Head Office.Generate request for Data Check and e-CIB to Head Office.

2.2. Initiation of Life & Disability Insurance request.Initiation of Life & Disability Insurance request.

3.3. Generate letters to Regional EAMU Office for Physical &Generate letters to Regional EAMU Office for Physical &Telephonic Verifications.Telephonic Verifications.

4.4. Generate request for Legal Opinion from the authorizedGenerate request for Legal Opinion from the authorized

BLA for NBP-Saibaan.BLA for NBP-Saibaan.

5.5. Generate request for Property Valuation from theGenerate request for Property Valuation from the

authorized valuator for NBP-Saibaan.authorized valuator for NBP-Saibaan.6.6. Generate request for Income Estimation from theGenerate request for Income Estimation from the

authorized income estimator (where applicable).authorized income estimator (where applicable).

Initiating for Legal Opinion, Property Valuation andInitiating for Legal Opinion, Property Valuation and

Income EstimationIncome EstimationHub Branch to perform some of the functions of Regional EAMU Office.Hub Branch to perform some of the functions of Regional EAMU Office.


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Initiating for Legal Opinion, Property Valuation

and Income Estimation

Hub Branch to perform some of the functions of Regional EAMU

Office.

Copies of all above letters / correspondence are also to

be provided to Regional EAMU office. The Regional

EAMU office will enter the triggering dates of these

tasks into the CAMS. Both the Hub Branch and theRegional EAMU office will follow-up with the agencies

for the timely receipt of reports.

N B P


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The external agencies are to send the original reportsto concerned Hub Branch with a copy to the EAMU-

Head, National Bank of Pakistan, Retail Banking

Group, 11th Floor, Head Office, I.I. Chundrigar

Road, Karachi. In this regard it is the responsibilityof each RHQ and the Hub Branch to inform its

external agencies about the change in the process as

mentioned above.

Initiating for Legal Opinion, Property Valuation

and Income Estimation

Hub Branch to perform some of the functions of Regional EAMU

Office.

N B P


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Income EstimationIncome Estimation

Hub Branch to perform some of the functions of Regional EAMU Office.Hub Branch to perform some of the functions of Regional EAMU Office.

Upon receipt of external agency reports, Hub BranchUpon receipt of external agency reports, Hub Branch

will forward the same along with the complete case filewill forward the same along with the complete case fileto its respective Regional EAMU office,to its respective Regional EAMU office, where thesewhere these

reports will be entered into the CAMS and the case willreports will be entered into the CAMS and the case will

be processed further.be processed further. Regional EAMU office will alsoRegional EAMU office will also

sign off on these reports along with the Hub Branch.sign off on these reports along with the Hub Branch.The TAT of external agencies will need to be monitoredThe TAT of external agencies will need to be monitored

by both the Hub Branch and the Regional EAMU office,by both the Hub Branch and the Regional EAMU office,

ensuring that the time frame provided in the instructionensuring that the time frame provided in the instruction

circulars is not hindered.circulars is not hindered.

N B P


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The function of Physical and Telephonic VerificationThe function of Physical and Telephonic Verification

will remain the responsibility of the Regional EAMUwill remain the responsibility of the Regional EAMUOffice.Office. Similarly, the Data Check and CIB will stillSimilarly, the Data Check and CIB will still

be the responsibility of Head Officebe the responsibility of Head Office; however, the; however, the

request will be generated by the concernedrequest will be generated by the concerned HUBHUB

BranchBranch. In this regard, the Hub Branch will send a. In this regard, the Hub Branch will send arequest to its Regional EAMU office for initiatingrequest to its Regional EAMU office for initiating

these verifications. Hub Branch will generate thesethese verifications. Hub Branch will generate these

requests on the same day or before it initiates therequests on the same day or before it initiates the

case for external agencies.case for external agencies.


Income EstimationIncome Estimation

Hub Branch to perform some of the functions of Regional EAMU Office.Hub Branch to perform some of the functions of Regional EAMU Office.

NN BB PP


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Charge on the PropertyCharge on the Property

1% Registered Mortgage of the Finance amount and remaining1% Registered Mortgage of the Finance amount and remaining

balance as Equitable Mortgagebalance as Equitable Mortgage.

With immediate effect it has been decided that inWith immediate effect it has been decided that inKarachi, Lahore, Islamabad & Rawalpindi for securityKarachi, Lahore, Islamabad & Rawalpindi for security

purposes, property is to be 1% token registered (ofpurposes, property is to be 1% token registered (of

finance amount) and balance as equitable mortgage.finance amount) and balance as equitable mortgage.

However, RHQs at these cities will have concern toHowever, RHQs at these cities will have concern tohave the property on 100% equitable mortgage subjecthave the property on 100% equitable mortgage subject

to approval by Head Office.to approval by Head Office.

NN BB PP


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Recently,Recently, SBP has removed the maximum perSBP has removed the maximum per

party limit of Rs. 10 millionparty limit of Rs. 10 million in respect of housingin respect of housing

finance. Therefore, it is decided that the maximumfinance. Therefore, it is decided that the maximum

per party limit of Rs. 10 million under NBP per party limit of Rs. 10 million under NBP Saibaan to be removed with immediate effect andSaibaan to be removed with immediate effect and

be capped at Rbe capped at Rs. 35.00 million EXCEPT for Homes. 35.00 million EXCEPT for Home

Improvement which is to be capped at 15 M.Improvement which is to be capped at 15 M.

However, all home financing facilities above Rs. 10However, all home financing facilities above Rs. 10

M will be subject to a maximum of debt to equityM will be subject to a maximum of debt to equity

ratio of 80 : 20ratio of 80 : 20

Removal of Per Party Limit: -Removal of Per Party Limit: -

NN BB PP


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Government Employees Minimum Net TakeGovernment Employees Minimum Net TakeHome Salary to be Rs. 5,000/=: -Home Salary to be Rs. 5,000/=: -

In order to facilitate all government employees,In order to facilitate all government employees,

it has been decided that minimum net take homeit has been decided that minimum net take home

salary requirement be made Rs. 5,000/-salary requirement be made Rs. 5,000/-

irrespective of whether they are willing toirrespective of whether they are willing to

provide required employer undertaking or not.provide required employer undertaking or not.However, their salary A/c has to be maintainedHowever, their salary A/c has to be maintained

with NBP and their salary to be directlywith NBP and their salary to be directly

credited to their salary A/c.credited to their salary A/c.

NN BB PP


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It is decided that life & disability insurance be made

an optional feature instead of the current status of

being compulsory. However, in cases where theapplicant does not opt for life & disability insurance: -

The debt to equity ratio to be 80:20 instead of 85:15

Markup rate to be raised by 2%.

Making Life & Disability Insurance Optional:Making Life & Disability Insurance Optional:

NN i l BB k f PP ki


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All financing facilities of Rs. 15 Million and above will

be required to have two income estimation reports

from two different agencies and the cost will be borne

by the customer.

2 Income Estimation for facilities above 15.00M2 Income Estimation for facilities above 15.00M

NN i l BB k f PP ki


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NN i li l BB k fk f PP kiki


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As per current policy at the time ofAs per current policy at the time of

disbursement (handing of payment order)disbursement (handing of payment order)

Bank/BLA has to take the original propertyBank/BLA has to take the original property

documents in its custody.documents in its custody. This works fine in aThis works fine in a

normal case of housing finance, however, thenormal case of housing finance, however, the

said practice does not hold true in cases ofsaid practice does not hold true in cases ofBalance Transfer Facility (BTF).Balance Transfer Facility (BTF).

Background: -Background: -



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The reason for this is that in BTF cases theThe reason for this is that in BTF cases the

original property documents are already in theoriginal property documents are already in the

possession of a Bank for which BTF has beenpossession of a Bank for which BTF has been

approved and the concernedapproved and the concerned Bank takes someBank takes some

time (due to internal process) intime (due to internal process) in

releasing/delivery of the original documentsreleasing/delivery of the original documents

after receiving the pay order on behalf of theafter receiving the pay order on behalf of the

borrowerborrower

Background: -Background: -



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To streamline the process of BTF, theTo streamline the process of BTF, the

following four steps are to be followed : -following four steps are to be followed : -

1)1) Documents requirements from theDocuments requirements from the

customers.customers.

2)2) Inspection of Original title documents.Inspection of Original title documents.

3)3) Letter from the institutions.Letter from the institutions.

4)4) Handing over the Payorder to theHanding over the Payorder to the

concernedconcerned institution.institution.

Procedure: -Procedure: -

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1. Documents requirements from the customers1. Documents requirements from the customers

While processing the BTF cases NBP mustWhile processing the BTF cases NBP must

require following from the customer/borrower:require following from the customer/borrower:

Duly attested copy(ies) of title document(s)Duly attested copy(ies) of title document(s)

from the bank that is holding such documents.from the bank that is holding such documents.

A copy of acknowledgement of receiving theA copy of acknowledgement of receiving the

title documents from the customertitle documents from the customer

that he/shethat he/she

would have obtained from the bank whilewould have obtained from the bank while

depositing title documents with that bank.depositing title documents with that bank.

A copy of Letter to Releasing BankA copy of Letter to Releasing Bank

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2) Inspection of Original title documents.2) Inspection of Original title documents.

The risk for not inspecting the original titleThe risk for not inspecting the original title

documents previous to disbursement must bedocuments previous to disbursement must be

moderate by having the genuineness ofmoderate by having the genuineness of thethephotocopies of the title documents that the customerphotocopies of the title documents that the customer

would have submitted to NBP, independentlywould have submitted to NBP, independently

confirmed from the relevant offices.confirmed from the relevant offices.

Regions will be responsible for getting theRegions will be responsible for getting the

genuineness of the documents verified from thegenuineness of the documents verified from the

BLA through relevant offices.BLA through relevant offices.

NN ti lti l BB k fk f PP ki tki t


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Kindly note that acceptance of the said pay orderKindly note that acceptance of the said pay order

by you will be treated by us as confirmation thatby you will be treated by us as confirmation that

photocopy(ies) of title documents(s) that werephotocopy(ies) of title documents(s) that wereprovided to us by our customer (and copies ofprovided to us by our customer (and copies of

which are attached with this letter) is/are truewhich are attached with this letter) is/are true

copy(ies) of the original document(s) that is/arecopy(ies) of the original document(s) that is/are

in your possession.in your possession.

Letter Format:Letter Format:



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If NOT, you must return the pay orderIf NOT, you must return the pay order

immediately inform us to enable us to protectimmediately inform us to enable us to protect

our bank from any potential fraud.our bank from any potential fraud.

Yours truly,Yours truly,

____________________________

Authorized SignerAuthorized Signer

Letter Format:Letter Format:



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Additionally, it may also beAdditionally, it may also beensured that BTF cases of onlyensured that BTF cases of only

reputable commercial banks willreputable commercial banks will

be accepted.be accepted.

NOTE: -NOTE: -



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COMPETITIVE ADVANTAGESCOMPETITIVE ADVANTAGES

LOWEST MARKUP RATE.LOWEST MARKUP RATE.

LOWEST PROCESSING FEE.LOWEST PROCESSING FEE.

HIGHEST DEBT EQUITY RATIO.HIGHEST DEBT EQUITY RATIO.

LOWEST MINIMUM REQUIREMENT.LOWEST MINIMUM REQUIREMENT.

HIGHEST NUMBER OF POSITIVE AREASHIGHEST NUMBER OF POSITIVE AREAS