Askari Bank Limited - HOME LOANS

Askari Bank

Headoffice: AWT Plaza, The Mall, P.O.Box 1084, Rawalpindi.  Contact Person: N/A Mobile: N/A  UAN: 0800-00078 Phone: +92(051) 9063000  Email Address: info@askaribank.com.pk Web URL: http://www.askaribank.com.pk

PRODUCTS' SPECIFICATION
Ever since the inception of life, shelter has been rated among the primary needs of mankind. Owning a home for oneself still remains an exclusive dream for many. Askari Bank has made the realization of your dream to have a house of your very own possible. Whether you plan to build a house, tailor made to your requirements or buy a constructed house, Askari mortgage finance enables you to pursue your goal without any problems. Mortgage is a premium home financing product for customers aged between 23 – 65 years belonging to the upper, upper middle and middle income groups, residing in the urban areas of Pakistan.
Askari Mortgage Finance offers you to get Home Loan Financing with five variations:

i.	Build a Home (Tranche Loans)
ii.	Buy a Home
iii.	Buy a plot and Construct
iv.	Renovation
v.	Balance Transfer Facility

Build a Home: This type of loan is extended to customers who already own a piece of land and need funds to meet cost of constructing property on that land. The disbursement of this loan is made in four or less tranches during the construction phase depending upon the bills of quantity (BOQ) submitted by the customer and the quantity and quality of construction done.
Buy a Home: As the name suggests, this type of loan is meant for the purchase of an already constructed property.
Buy a Plot and Construct: This loan type is extended for the customers who want to buy a plot and construct a property on that plot. The disbursement of this loan is made in lump sum for the purchase of plot and then in four or less tranches during the construction phase depending upon the bills of quantity (BOQ) submitted by the customer and the quantity and quality of construction done. The bifurcation of limit for purchase of plot and construction will be applicable as per prevailing SBP prudential regulations.
Renovation: This loan is offered to customers who already posses a house and require funds for renovation/ improvement. Disbursal will be made only after customer has provided BOQ and an undertaking for utilization of this facility for the purpose of renovation/ improvement.
Balance transfer facility: This kind of loan is offered to existing borrowers of other institutions, who may want to switch over to Askari Bank Limited because of service, pricing or relationship reasons. The loan with the other financial institute should have been paid in accordance with bank’s credit history and debt burden requirements. Balance transfer facility is strictly not allowed for the properties that are still under construction.
Branches Offering Housing Finance:
All Branches in the following cities can be contacted for Askari Mortgage Finance:
Karachi, Lahore, Islamabad, Rawalpindi, Gujranwala & Sialkot.
General Terms and Conditions:
An Individual must fulfil the following requirements to be eligible for applying Home Loan:

1. Must be a Tax Payer.
2. Must have a Valid Computerized National Identity Card (CNIC).
3. Mobile is mandatory. In case of Buy / Build a Home cases, we do not require land line at current or potential residence, in case of Home Renovation cases in absence of PTCL Land line, any mobile or Wireless connection at residence is acceptable.

Extracts of relevant SBP regulations and Bank's policy on mortgage financing:
Regulation R-15: Banks / DFIs shall determine the housing finance limit, both in urban and rural areas, in accordance with their internal credit policy, credit worthiness and loan repayment capacity of the borrowers. At the same time, while determining the credit worthiness and repayment capacity of the prospective borrower, banks / DFIs shall ensure that the total monthly amortization payments of consumer loans, inclusive of housing loan, should not exceed 50% of the net disposable income of the prospective borrower.
Bank’s Policy
The portfolio acquired through Mortgage Finance program shall include properties only in urban residential areas of major cities. New cities can be added only after setting up verifications & collections infra-structure.
Aggregate debt burden will be considered. Debt burden inclusive of all existing and proposed liabilities should not exceed 50% of net disposable income OR as per SBP Prudential in force.
Regulation R-18: The house financed by the bank/ DFI shall be mortgaged in bank’s/ DFI’s favor by way of equitable or registered mortgage.
Bank’s Policy
Lien Marking, Equitable plus Token registered mortgage/ full registered mortgage/mortgage under section 58(f) of transfer of property act 1882.

ELIGIBILITY CRITERIA:

Age	Primary Borrower’s age Salaried     Minimum age: 23 Years Maximum age: 60 Years at maturity SEB/P Minimum age: 23 Years Maximum age: 65 Years at maturity
Co-borrower	Only Son and Spouse are allowed as Co-borrower. However, a blood relative is allowed in case of joint ownership in property:                          Minimum age: 18 Years                          Maximum age: 65 years
Income	Rs. 35000/- per month
Additional / Surrogate Income Source	Rent Agreement has become a major source of additional income of our applicants. Therefore, to authenticate, all rent agreements will have to be supported by the title documents of that particular property. The title has to be in applicant’s name (primary or co-borrower). Any other source of Income which can be verified through documents.
Length of Employment	a) Salaried Employees with a minimum service length of 2 years including present employer. )Self Employed Professionals Architects, Doctors/ Dentists, Engineers, Chartered Accountants and Consultants. Minimum 2 years in profession. c) Self Employed Business Individuals Minimum 3 years in same line of business In family businesses only, where a Director was engaged in the business prior to being elevated to Director, or was made Director at least a year ago due to educational responsibilities/ engaged in other family related business, the same will also be considered. The business in such case must be 3 year old at least, and the Director applying for loan must have been in the same post for minimum of 1 year.

Eligible Financing limits under each product category:

Product Category	Minimum limit	Maximum Limit
Build a Home (Tranche Loans)	Rs. 300,000	Rs. 30,000,000
Buy a Home	Rs. 300,000	Rs. 30,000,000
Buy a plot + Construction	Rs. 300,000	Rs. 30,000,000
Renovation	Loan amount calculation not to exceed the 50% of the total asset value OR 60% of Assets value, whichever is lower.

Pricing Criteria (Base rate and frequency of revision)

Markup for Salaried (All Categories)	*KIBOR + 4%
Mark up for Self Employed – Businessmen	*KIBOR + 5%

*12 month KIBOR ask side average.

• OR otherwise according to a corporate deal between Askari Bank Ltd & a corporate entity.
• The rates will be based on a floating rate arrangement wherein the loans linked to 12 month KIBOR will be reviewed after a 12 month interval based on the calendar year i.e. 1st January of every year till maturity.

SCHEDULE OF CHARGES

Processing Fee	Rs.6,500/- (Flat) as Per SOC
Legal/documentation/valuation/income estimation charges	At actual
Enhancement Charges	Rs.6,500/- (Flat) as per SOC
Late Payment Charges	Rs.750/- per installment
Cheque return charges	Rs.500/- per cheque
Premature Termination Charges	a) In case of early settlement by the borrower charges will be applicable in the following manner.       i) 1st Year: Upto 6.5% on outstanding balance       ii) 2nd Year: Upto 5.5% on outstanding balance       iii) 3rd Year onwards: Upto 4.5% on outstanding balance. b) Upto 11% of the outstanding balance, in case of balance transferred to other bank, irrespective of the time period.
Balloon Payment	Balloon Payment allowed upto a maximum of 20% of the outstanding balance in a year. Additional balloon payments will be upto 6% charges on the amount being paid (balloon payment amount).

DOCUMENTATION:
Along with a filled out Application Form where all details & mandatory fields duly filled, we will require the following documents:

Salaried Individuals	1	Attested copy of CNIC.
	2	Two passport size photographs
	3	Copy of the latest paid utility bill received at the residential address.
	4	Employment  confirmation letter from the employer mentioning the length of service, designation, gross salary and additional monthly perks
	5	Lass three months original salary slip or attested photo copy
	6	Lass six months bank statement
	7	Copy of the Me documents/other supporting documents of the properly to be placed with the bank as security.
Sole Proprietorship Concerns	1	Attested copy of CNIC
	2	Two passport sire photographs
	3	Proprietorship Certificate from Bank Indicating title & account opening date
	4	Copy of the title documents or mot deed of business premises
	5	Copy of the latest paid utility bill reserved at the residential address
	6	Copy of the latest bill received at the business address.
	7	Lost six months batik statement (business / personal)
	8	Copy of the title documents/other supporting documents of the property to be placed with the bank as security.
	9	Copy of the latest income tax return or NTN Certificate or other levy able payment receipts
Partnership Concerns	1	Partnership Concerns
	2	Attested copy of CNIC.
	3	Two passport size photographs.
	4	Partnership Deed or Bank Certificate Indicating title, account opening data
	5	Copy of title documents or rent dad of business premises
	6	Copy of the latest paid utility bill received at the residential address.
	7	Copy of the latest bill received at the business address.
	8	Lost six moths book statement (business / personal)
	9	Copy of the title documents/other supporting document of the property to be placed with the Cash as security.
	10	Concerns, of the latest income tax return or NTN Certificate or other levy able payment receipts
Limited Companies	1	Attested espy of CNIC.
	2	Two passport size photo graphs,
	3	Bank Certificate Indicating title & account opening date
	4	Copy of the title documents or rent deed of bottoms premises.
	5	Cops of the latest paid utility bill received at the residential address
	6	Copy of the latest bill received at the boon= address.
	7	Last six months bank statement (business I personal)
	8	Copy of the title documents/other supporting documents of the property to be placed with the bank as security
	9	Copy of the latest income tax return or NTN Certificate or other levy able payment receipts
	10	Memorandum and Articles of association duly certified by SECP
	11	Form 29 and Form A duly certified by SECP.

Repayment Frequency and mode etc.
Equal Monthly Installment comprising principal and mark-up according to the amortization schedule based on pricing and tenure. The amortization schedule will be revised consequent upon review of the floating rate at the specified intervals.
Frequently Asked Questions:
1. What is the Mark up rate for Mortgage Home Finance scheme?
*KIBOR + 4% for Salaried Person and * KIBOR +5 for SEP & SEB
2. What will be the loan tenor?
Askari Mortgage Finance is available for the period ranging from 1 to 20 Years
3. What are the minimum and the maximum loan amount that can be acquired?
Minimum amount is 300,000 and Maximum amount is 30Million.
4. What is the Loan to Value ratio? Or how much financing can I get against my property?
Loan amount calculation not to exceed the 50% of the total asset value OR 60% of Assets value, whichever is lower.
5. Who is eligible to apply?
Please see the Eligibility Criteria.
6. Who will assess the value of property?
Different Qualified and experienced property valuation firms which are on approved panel of Askari Bank Ltd conduct the property valuation.
7. Will my spouse’s income also be considered?
Yes you can also club your spouse’s income to qualify for higher amount of loan. In this case your spouse will be treated as a co-borrower.
8. I live in Karachi and want to Purchase/ Renovate/Construct a house in Lahore. Can I avail your financing facility?
Yes, but certain terms and conditions are applied
9. I am a property dealer. Will I get an incentive from Askari Bank if I bring in Mortgage customers?
No, we do not offer any commissions/ rewards to the property dealers.
10. How much will I have to pay for: Loan Processing, Legal Opinion Property Valuation and Income Estimation?
Please see the Schedule of Charges.
11. Are these refundable, if my loan is declined?
Legal Opinion Property Valuation and Income Estimation charges are non refundable, however, the processing fee is charged once the loan application is approved
12. I am a Businessman/Self Employed Professional, how will you assess my income?
Income will be accessed through Qualified CA’s/ Income estimators who conduct this estimation through documentation and business activity to estimate a minimum income of your business.
13. I want to co-own a property with my cousin. Is it possible to avail Askari Mortgage for this purpose?
No, only son and spouse are allowed to apply for a Mortgage Finance as a co-borrower.
 How to apply
You can apply for a Mortgage Finance loan by visiting any of the above mentioned branches or by calling at our 24hrs call center at 111-000-787. Our dedicated staff will help you completing your loan application form and other formalities.
Contact numbers of the concerned officers:

S. No	Name	Mobile Numbers	Location
1	Mr. M Imtiaz Qadri	0321-4456688	Central
2	Mr. Shahnawaz Alam	0301-8227616	South
3	Mr. Adil Shaheen	0334-5149478	North

1  ASKARI MORTGAGE CACULATOR