Zaigham Mahmood Rizvi, the chairman and CEO of House Building Finance Corporation informed in a seminar on ‘’Islamic Banking Investment - progress and potential” held on Friday at the Federation of Pakistan Chambers of Commerce and Industry that the Riba free system was now maturing, gaining confidence and becoming all pervasive. He pointed out that many were, perhaps, not aware that Riba free financial products were more innovative and are moving from private section to public section.
Mr Rizvi said that Riba free financial products were now moving from Islamic Development Bank to World Bank and International Monetary Fund.
However, House Building Finance Corporation (HBFC) has launched a Small Builders Finance scheme to meet the housing shortage being faced by middle and lower middle segments of the society. Under the scheme, the HBFC will be providing financing facility to those builders, who construct and sell small houses.
Since the onward loaning facility to the ultimate purchaser of the house will also be available, it will facilitate not only the builders but will also promote sale of houses to the interested buyers.
Such builders may avail the investment up to Rs7.5 million for a period of 18 to 24 months. They may enjoy this facility for construction of two housing units at a time and gradually expand their business with HBFC’s financial support to six houses at a time.