The Lahore Development Authority (LDA) and the Bank of Punjab (BOP) have signed an agreement worth Rs. 10 billion under which the bank will provide resources for the construction of LDA City Naya Pakistan Apartments.
The agreement was signed by LDA Director General Ahmed Aziz Tarar and BOP Chairman Zafar Masood in the presence of Punjab Chief Minister Sardar Usman Bazdar here on Wednesday.
According to the agreement, LDA will build and allot 4,000 apartments through belting and will also be responsible for the maintenance of the building’s infrastructure while the bank will receive applications, providing soft loans to successful applicants. Bank of Punjab (BOP) will provide loans Under Islamic mortgage financing.
The loans will be payable in a period of 5, 10 and 20 years. A directorate established to ensure a fast-track system. CM, Punjab Usman Buzdar added that a consortium of different banks formed for this purpose. Those banks include Bank of Punjab, Habib Bank, Faisal Bank, Bank Alfalah, UBL, Meezan Bank and National Bank. These banks will facilitate to provide a mortgage financing facility for Naya Pakistan Housing facility. “The Naya Pakistan Housing Authority will provide Rs 300,000 subsidy. The banks will provide soft loans under Islamic banking (takaful).