House Ownership & Building Assistance

Rule Number 02-House Building Assistance

2.1       House Ownership and Building Assistance

The Company encourages management staff to build / buy houses / flats anywhere in Pakistan (irrespective of the concerned managers place of posting), as additional retirement security. To this end the Company provides assistance in the form of an interest free House Building Loan once in a manager’s career. The rules for grant of such loans are as follows;

a          Where a manager has 10 or more years’ service with the Company, he shall be entitled to a lumpsum payment, equivalent to five years of his current house rent allowance. In this case, the amount of loan once sanctioned will not be increased subsequently even if the manager’s house rent allowance  is revised during the tenure of his loan.

b          Where a manager has 5 or more years’ service with the Company, he shall be entitled to a house building loan equivalent to five years of his existing house rent allowance   payable in four annual installments. The first installment will be equivalent to two years of his current house rent allowance while the subsequent three installments will be equivalent to one year’s house rent allowance at the time of disbursement.

c          Managers who, at the time of availing this   facility, have less than four years remaining  to  reach  ten  years’  of  service,  will  be  entitled  to  receive  the outstanding amount in lump sum on reaching ten years’ service.

d          In all cases, loans will be recovered in 60 equal  installments over 5 years.

Recovery will be made as follows;

Advance given (yr)                         Recovery (yr)

1                                                          1&2

2                                                             3

3                                                             4

4                                                             5

e          Payments against the above loans will be made after the civil structure (complete construction work from plinth to roof) of the house has been completed, or the house to be purchased has been identified, and a purchase agreement drawn up.

f           If the manager sells his house during the currency of the loan, he would be required to repay his outstanding loan amount immediately.

g          The above loans will also be admissible for substantial extension / addition to existing premises with documentary evidence of the same.  This facility may be obtained with prior agreement of HRD.

h          Where an employee is promoted from non-management to management cadre, such an employee’s total service period with the Company will be considered for the purpose of this rule.