COMSATS Institute of Information Technology, Lahore Department of Management Sciences

Internship Report on
(House Building Finance Corporation Ltd)

Presented to
Miss. Sadaf Ehsan

Presented By
Name: Naukhaiz Al i !tudent"s I#: $BA % FA&' % '()

ACKNOWLEDGEMENT

All praises to almighty ALLAH and our holy prophet Muhammad PBUH who gave me the courage and patience for completion of this final report. I wish to acknowledge my gratitude to my inspiring eachers for their endless their persistence! support and encouragement! and for providing me a lifetime opportunity to work with House Building "inance #orporation I am also very thankful to House Building "inance #orporation #hau$ur%i Branch! Lahore and the Branch Manager Mr. &ahir Ahmad who gave me opportunity to work with e'perienced persons in their organi(ation. I am also thankful to my parents! family and friends that continually offered encouraging support

Muhammad )aukhai( Alvi

PREFACE As a requirement of the degree, each student has to go to go to some business organization to get practical experience. In fact, for the student of M.B.A 6 ! "ee# internship is a golden chance to de$elop their capabilit% and s#ill of administration and management in the practical en$ironment of different business organization. In this contest, I selected the &ouse Building 'inance (orporation. I ha$e selected this organization, as it is the premium institution in the sector of housing finance In )a#istan. Moreo$er, particularl% being a student of business, it is necessar% for me to get practical #no"ledge of the managerial and financial acti$ities of the organization. *his "or# is collection of m% obser$ation and experience during the internship period and after"ard. *he source of m% information for the preparation of this report also includes the "ritten notes and $erbal discussion "ith staff of &ouse Building 'inance (orporation. In the preparation of this report, I ha$e recei$ed $aluable assistance from emplo%ees of &ouse Building 'inance (orporation. I am than#ful to them from the core of m% heart and appreciate their interest in the accomplishment of this report

TABLE OF CONTENTS

PART 1

Introduction

 PART &

History of HBFC Introduction of HBFC Objective / ission ! "ision st#te$ent

05 06 0%

'rofi(e of t)e or*#ni+#tion! Br#nc) net,or#jor 'rojects Credit r#tin* #n#*e$ent Products of t)e or*#ni+#tion 1A2 3f(e4i5 y Interns)i' #t HBFC First t,o ,ee-s T)ird #nd fourt) ,eeFift) #nd si4t) ,ee2event) ,ee7#st ,eeFin#nci#( #n#(ysis "ertic#( #n#(ysis of B/2 Hori+ont#( #n#(ysis of B/2 Hori+ont#( #n#(ysis of P!7oss Reco$$end#tion ! 2u**estion %1 %6 %6 %. &1 61 6% 6/ %0 1% 0. 0/ 10 11

P#rt 0

P#rt 6

P#rt 5

!STOR" OF

O#SE B#!LD!NG F!NANCE CORPORAT!ON Sin$e ho%sin& is one of the f%nda'enta( re)%ire'ents of a

(i*in& +ein& +%t at the ti'e of ,artition- the e$ono'i$ and indi*id%a( $ir$%'stan$es .ere not s%,,ortin& eno%&h for e*ery one to $onstr%$t and ,%r$hase their o.n ho%se. So /ee,in& in 'ind this +a$/&ro%nd&o*ern'ent of Pa/istan de$ided to esta+(ish a from this organi(ation. he House Building "inance #orporation *now incorporated under companies+ ordinance ,-./ as 0HB"# Ltd.0 since 1uly! 23345 was esta$lished in the year ,-62 as a 7tatutory "ederal Body with the o$%ect of providing financial assistance for construction and purchase of houses to the people of Pakistan in ur$an as well as rural areas. 8ith its esta$lishment! the concept of institutionali(ed housing finance was introduced for the first time in Indo9Pak su$9continent for providing long9term finance for house $uilding. he government of Pakistan and state $ank of Pakistan %ointly hold the share capital of the corporation he primary o$%ective of the #orporation is to provide financial facilities for the construction! re9construction! repair and purchase of houses! particularly to the low and middle9income groups of the economy. HB"# has a large network of .3 offices spanning across the country! managed through ,2 (ones with head:uarters at ;arachi After a su$stantial delay! Mr. 7yed A(har A$$as 1affri has $een appointed as the new M< recently. Mr. 1affri possesses significant work e'perience in the financial industry! mainly at $anks $oth local and international o%se Building "inance #orporation so those who cannot $uy or construct their own houses can $enefit

!NTROD#CT!ON OF

O#SE B#!LD!NG F!NANCE CORPORAT!ON

he House Building "inance #orporation *HB"#5 has historically provided housing finance in Pakistan! a government entity originally esta$lished in ,-62 to provide housing finance to the pu$lic. Banks have not historically $een ma%or providers of housing finance. "rom ,-62 to ,-42! HB"# made loans only to *prospective5 home owners for construction of homes in ur$an areas. <uring this period! HB"#+s origination activities were :uite modest! averaging P=s ,. million *U7>?33!3335 annually. In ,-42! HB"#+s mandate was e'panded to allow it to provide construction financing to housing pro%ects! finance to housing authorities and housing corporations! and reha$ilitation loans@ and to undertake real estate development pro%ects. "ollowing this e'pansion of scope! HB"#+s volume of originations increased significantly! averaging around P=s 633 million *U7>..? million5 $etween ,-42 and ,-4-. In the ,-.3s and ,--3s HB"# was averaging around P=s ,.6 $illion *U7>26 million5 in annual dis$ursementsAoriginations. In ,--/! the government decided that HB"# should operate as a market9oriented financial institution! and in that year! 7BP stopped lending to HB"#. 7ince then! HB"# has $een relying on repayments from its loan portfolio as its main source of funding new loans. In 1une ,---! the 7upreme #ourt of Pakistan ruled that all financial institutions in Pakistan should $e BIslami(ed.C his effectively shut down HB"#+s retail lending program while they BretooledC to offer 7haria9compliant housing finance programs. It was not until "e$ruary 2332 that HB"# returned to the retail market with a new BIslami(edC housing finance program *Dhar Aasan5. HB"#+s originations during the past two :uarters have $een running at an average monthly rate of P=s ,46 million *U7>2.-2 million5 and are e'pected to run appro'imately P=s 2 $illion *U7>??.?/ million5 for the year.

0ision State'ent of

o%se B%i(din& Finan$e Cor,oration

To $e the prime housing finance institution of the country! providing afforda$le housing solutions to low and middle income groups of population $y encouraging new constructions in 7mall E Medium Housing *7MH5 sector

$ission !tatement o* House Building Finance Corporation o $e a socially responsi$le and commercially sustaina$le housing finance institution. arget market F Low income and middle income groups of populations arget areas F )o negative list! all legali(ed residential locations =esponding to housing needs of low9income groups is a social responsi$ility! $eyond that everything has to $e ,33G commercially via$le and sustaina$le to ensure an on going housing finance entity

Profi(e of the or&ani1ation House Building "inance #orporation! the oldest housing finance institute of Pakistan! was esta$lished as a statutory federal $ody in ,-62 with the o$%ective of providing financial assistance for the construction of houses. Hnsuingly HB"#+s scope also $ranched out into diverse dominions like purchase! repair and renovation of houses. Later on HB"#+s mission was evenmore reformed to specifically target the needs of the low and middle income strata of the country $y providing 7mall and Medium Housing *7MH5 7olutions! hence successfully providing skilled and user friendly service at afforda$le costs. BRANC NETWORK OF BFC

Iver the years HB"#+s operation has flourished and is now spread over a network of ? =egional! ,2 &onal and 6. <istrict Iffices! / camp offices and 26 =epresentative IfficesA7ervice Agents and 2, more such offices will $e opened very soon. HB"# today has its presence in .3 cities and towns all over Pakistan and is targeting to e'pand its $usiness to ,63 cities and towns. HB"#+s Head office is situated in "inance E rade #entre ;arachi. BFC- s F!NANC!NG /ince inception to date, the corporation has financed o$er one and half million units for 0s. ,1.,+. billions, pro$ided housing finance facilit% to 2! corporate clients for 0s. 1.. million, made reco$eries of 0s. -1.+6! billions and has outstanding portfolio of 0s. 11.6 billion.

D!SB#RSEMENT AND RECO0ER!ES HB"# dis$ursed =s. J33 millions flood loans to over =s 3./ million affected families granted remissions to 8idows! Irphans and retired Dovernment 7ervant of =s. ,.2? $illion on "ederal Dovernment+s directive. Its Average annual dis$ursements and recoveries are around =s. 29,A2 to ? $illions. It has contri$uted =s. ,4.,/- $illion in shape of payment of interest! profit and income ta' to Dovernment and 7tate Bank of Pakistan. MA2OR PRO2ECTS In ,-./9.6! the corporation launched "aisal own Housing Pro%ect! at Lahore consisting of ?,2 $ungalows BHB"# and also constructed HB"# ,-9 owns storeyed Iffice Building named owns valua$le plots HouseC Islama$ad. Hayata$ad

prestigious Iffice BuildingsAPremises at ;arachi! Lahore and Hydera$ad. It also at Lahore! Islama$ad! *Peshawar5 and Hydera$ad. Arrangements are afoot to construct on these plots modern commercial9cum9residential $uildings! estimated to cost over =s. one $illion. <esign concept of ,29,J storeyed "lat Pro%ect consisting of 23. apartments at Lahore and ,29storeyed office $uilding at Islama$ad conceptuali(ed $y MA7 )H7PA; stands approved $y HB"# Board of <irectors

S ARE OLD!NG PATTERN OF

BFC

HB"#+s paid up capital is =s. ?.33, Billion *J2.6 percent ownership $y the Ministry of "inance and the $alance of ?4.6 percent $y the 7tate Bank of Pakistan5.

CRED!T RAT!NG *he )a#istan (redit 0ating Agenc% 2imited 3)A(0A4 has maintained the long term and short term entit% ratings of &ouse Building 'inance (orporation 2imited 3&B'(4 at +A+ 3/ingle A4 and A1 3A 5ne4, respecti$el%. *he rating of secured *'( issue of )60 1,-77mln has also been maintained at ,A-" 3/ingle A )lus4. *he ratings denote a lo" expectation of credit ris# emanating from a $er% strong capacit% for timel% pa%ment of financial commitments. &B'(8s ratings reflect its o"nership structure 9 full% o"ned b% the :o$ernment of )a#istan8s 3:5)4 through /tate Ban# of )a#istan 3/B)4 and Ministr% of 'inance 9 and gi$en &B'(8s pi$otal role in :5)8s commitment in expanding the housing stoc# in the countr%, "herein the go$ernment is li#el% to continue supporting the (orporation. Mean"hile, the ratings recognize the (orporation8s adequate equit% base and strong liquidit% position. *he ratings also ta#e into account the on going restructuring process of the entit% aimed at bringing the requisite le$el of efficienc% in operations. GENERAL ADM!N!STRAT!ON AND MANAGEMENT he general directive and administration of the corporation and its affairs is entrusted to a Board of <irectors and the Managing <irector! who together with the assistance of Board #ommittee manages and controls the affairs of the corporation. he Dovernment of Pakistan appoints the Board of <irectors. Under its new mission! HB"# aims to $e the housing $ank for small and medium Housing finance

C./0$# 1ro*ile $anagement 1ro*ile Mr. Azhar

A.

2a**ri

Chie* .3ecuti e /**icer 0 $anaging #irector 17

C./0$# 1ro*ile

Board of Directors

$r4 Azhar A4 2a**ri Chairman (hief ;xecuti$e 5fficer < Managing =irector &ouse Building 'inance (orporation 2td. 3&B'(4, 6arachi

$r4 A4 Ak5ar !hari*zada #irector

11

>oint /ecretar%3I'4 'inance =i$ision, Ministr% of 'inance :o$ernment of )a#istan Islamabad

$r4 6ari7 I75al 8han #irector 0etired (hairman ? Managing =irector @ational In$estment *rust 2td 6arachi

12

$r4 6asneem Ahmed !iddi7ui #irector 0etired =irector :eneral /indh 6atchi Abadis Authorit% 6arachi

$r4 6ahir !iddi7ui !ecretar9 ;xecuti$e =irector &ouse Building 'inance (orporation 2td. 3&B'(4 6arachi

1+

$r4 :akaria $4 Fazil #irector ;xecuti$e Member, Association of Builders ? =e$elopers 3ABA=4, 6arachi

PROD#CTS OF

O#SE B#!LD!NG F!NANCE CORPORAT!ON

HB"# Ltd.Ks main aim has remained to serve its consumer market. HB"#+s financing schemes have also evolved over its 6. years of esta$lishment to ac:uiesce with this aspiration. hese schemes have propelled HB"# towards the fulfillment of its Business "ocus which is to accommodate the low and middle income group+s housing needs. hus! HB"# offers a wide range of products for the ministration of its consumers. House #onstruction "inancing! financing for purchase of houseAflat! renovation of House *Home improvement financing5! loan transfer and Balance transfer fund is the range offered $y this organi(ation. 7ince its evolution! HB"# has introduced many schemes for its valued target customers. I am here $riefly descri$ing all its schemes since ,-62.

1,

Interest $earing scheme *IB75 was the first product *scheme5 introduced

$y

HB"#. his scheme entertained the customers from its very $eginning till 1une ,-4-. Under this scheme! one was not eligi$le to get loan for =enovation purpose. After IB7! HB"# launched a new scheme known as Profit and loss scheme. his remained implemented from 1uly ,-4- to 1une ,-.4. Under this scheme! one was not eligi$le to get loan for renovation purpose

)e't innovation in this conte't was 7implified 7cheme *775! which remained from 1uly ,-.4 to 1une ,-.-. Again! there was no room for the renovation.

77 was further improved and it was renamed as )ew 7implified 7cheme. It remained the premium product of HB"# from 1uly ,-.- to onward upto 2333.

"rom 2333! HB"# started their most popular schemes DHA=

A7A) 7#HHMH *DA75 and 7HA)<A= DHA= 7#HHMH *7D75 1. 2. /:/ 3 A<( @5A 17! 4, &B'( in$ested onl% for reno$ation In :A/ 3A<( @5A !7!4, &B'( in$ested onl% for house construction and also for

purchase of house. In 'eb 277!, &B'( introduced :A/ flexi 3 A<( @5A 17! 4 "hich includes loan

for construction, purchase and reno$ation At present &B'( 2td, ha$e follo"ing housing finance schemes in operationB

1-

&. C:har Aasan /chemeD based on diminishing Mushar#a, a /hariah compliant scheme under "hich credit for construction and purchase of houses is allo"ed. )4 C/handar :har /chemeD under "hich credit for repairs, reno$ation<up gradation is a$ailable. ;. C2oan facilit% for /mall BuilderD for construction and sale of small houses<flats <4 C:har Aasan /cheme 3'lexi4D for construction, purchase and reno$ation for houses<flats

G AR AASAN SC EME 3GAS4 FLE5! his product is $ased on the concept of <iminishing Musharaka and has four modules for the following purposesL9 *i5 Purchase of a residential property a. =esidential construction on Applicant+s owned land@ $. =esidential construction on applicant+s owned house (on advance stage of Construction i.e. up to lintel level or Roofed) *iii5 =enovation of an e'isting residential property *iv5 =eplacement of an e'isting housing finance *Balance ransfer "acility5 his scheme facilitates customer for purchaseAconstructionArenovation of *ii5 #onstruction of residential property

housesAflats. The salient features of the scheme areMa6i'%' Cei(in&7

16

,9 "inancing facility up to =s.,3 'i((ion for purchaseAconstruction or Balance ransfer "acility su$%ect to the customer+s eligi$ility E location of houseAflat. "or renovation ma'imum financing limit up to =s.2.6 million. 29 he investment is repaya$le in afforda$le installments over a ma'imum period of 23 years depending upon the customer+s age and repayment a$ility. ?9 he overall cost in ac:uiring housing under the scheme is moderate as compared with other $anks. /9 Harly unit purchase option! customer can purchase as many num$er of units as the customer wishes! su$%ect to prepayment charges. By making advance payment! the customer will avail two $enefits i.e. Det and reduced hisAher monthly installment on lower side or get reduced the period of loan. 697ecurityL e:uita$leAregistered mortgage in favor of House Building "inance #orporation J97haria compliant scheme. Approved $y the prominent Islamic scholars. till the ownership transfers. 49Hassle free repayment facility. Post dated che:ues are collected $y the HB"# so the customers are not re:uired to come. hey can also make an account on the HB"#! s we$site and can update their account from anywhere in the world In short! this was the $rief review of all the schemes introduced $y the House Building "inance #orporation. hese schemes were updated time9to9time keeping in view the changing circumstances and needs of the customers. his

scheme is $ased on the concept of mutual sharing and rent is hired for the time

1.

M" !NTERNS !P AT

O#SE B#!LD!NG F!NANCE CORPORAT!ON

As a part of my degree! practical training known as internship is of core importance. "or my internship! I applied in various organi(ations and few of them responded positively out of which I chose House Building "inance #orporation. My decision in favour of HB"# was $ased on many facts some of which I would like to share with you people. It is a government institution and almost has a monopoly in housing finance Its customer $ase is huge due to its large network all around the country its area of operations were well synchroni(ed with my ma%ors in M.B.A Its status as a Dovt. institution is now changing conte't. <ue to its large operations and related financial activities! there was a lot to learn for me which was my pre re:uisite for %oining any organi(ation as an internee as a semi govt or an autonomous $ody. 7o! radical changes were $eing o$served $y me in this

S%''ary of 'y internshi,

1!

My internship at HB"# was approved for . weeks and I tried my $est to learn more and more with in this specific time period. My allocation of time in various departments of HB"# was as follows I spent my first two weeks as a front desk officer guiding and customers a$out the HB"# policies and satisfying their :ueries. My ne't two weeks were also spent as a front desk officer $ut now my nature of work was changed. I spent these two weeks in case studies. I went through various files and learn a lot a$out the policies and functioning of HB"#. In these / weeks I learnt 46 G of my practical knowledge! l gained from HB"#. My ne't two weeks were spent in an audit department where I was engaged in checking of files and reconciling their $alances of dis$ursement and recoveries. My 4th week was spent in a recovery department. It was the most entertaining part in my internship. his week will always $e in my memory. In this week! I learnt how to take your money $ack. My .th week was spent in doing miscellaneous work. I type office letters for 2 days. I engaged in a P<# department for 2 days and my 6 th and last day of last week was spent in meeting and receiving farewell comments from all my respected seniors )ow I will e'plain all my work activities in HB"# in detail in terms of weeks. his will include all my findings! my o$servations and my conclusions educating

11

My first t.o .ee/s at o%se B%i(din& Finan$e Cor,oration My internship at House Building "inance #orporation started on ,2th of 1uly 23,3. i went to HB"# office * cho$urgi $ranch 5 with my uncle * who is manager admin in HB"# 5. He introduced me with Mr. &aheer Ahmad *$ranch manager5 and told him a$out my status as an internee. Mr. &aheer Ahmad warmly welcomed me and hand over me to Mr. A$dur =AHMA) *MA)ADH= grade two5 who was a front desk officer and was responsi$le for customer handling and customer guiding. He was a very interesting man and I learnt a lot from him. I immediately started o$serving him how he handles the customer and what did he reply to their :ueries. Under his supervision! I learnt the general loaning procedure and customer dealing. his all can $e summari(ed in the following heads. Deneral precautions list of property documents How to complete property documents list of documents re:uired $y HB"# Procedure of getting finance from HB"#.

27

How to purchase land and property

)ow I will e'plain all this one $y one in detail. 8. Genera( ,re$a%tions /ince I "as the front des# officer and I "as responsible for educating and guiding customers! so first I was supposed to teach myself general precautions to $e taken while purchasing property so that I may $etter guide them. Denerally! we can summari(e all these precautions as follows.

Precautions to be taken before purchasing a valid property (Land or House/flat) 7ince the procedure of $uying residential property is usually intricate in nature .More9so! it differs from area to area! thus it is imperative to make sure $efore entering into any deal a$out purchase of property! that it is free from all encum$rances. Here are a few checks $y applying that one can protect hisAher interest up to a ma'imum limitL ,. Hnsure that the property is mortgaged neither with any $ank nor under litigation in a court of law. M his can $e ascertained $y o$taining )on9 encum$rance certificate from the office of the 7u$9=egistrar of the area concerned where the property falls.N 2. Hnsure that seller has genuine title to the property.

21

?. Hnsure that seller has no defective title to land that might put into %eopardy the 7eller under the law to dispose9off the property. M his can $e ascertained from the land allotting agencyN /. o avoid legal complications! make sure that all the original documents with

complete chain of title are in order and handy availa$le with the 7eller. 6. If the owner lives a$road! a power of attorney! duly certified $y the Hm$assy or the #onsulate Deneral of Pakistan and registered with the area registrar is re:uired. )ormally documentation varies from area to area and city to city! hence! is su$%ect to the re:uirement of local authorities! such as the #lifton #antonment Board! <efense Housing Authority *<HA5! L<A in Lahore! #<A in Islama$ad! ;arachi <evelopment Authority! and the other societies! functional in the area where the property is $eing purchased. 7o! you must check the following documents $efore handing over token money or signing 7ale AgreementL9 Allotment letter Possession order 7ite Plan and su$9divided site plan All paid utility $ills and challans Approval and completion of the $uilding plan #ompletion certificate ransferAMutation Irder OIn case where sale deed is e'ecuted su$se:uent to Lease <eed Power of Attorney! duly e'ecuted in the office of the 7u$9=egistrar

#oncerned

22

In case the property under consideration is in territorial %urisdiction of <HA ;arachi! specific documents re:uired include

Approval letter for water connection! Assessment of property! 7ui Das and ;H7# installation sketch and test report

Pou also must take all original documents of the property from the seller! from ac:uiring the vacant plot up to completion certificate of the $uilding at the time of making the final payment with peaceful vacant physical possession of the property

9. List of ,ro,erty do$%'ents List of documents re:uired for e'ecution of lease <eedL ,. 2. ?. /. 6. J. 4. .. "ive copies of 7ite Plan *Blue Print5 Attested photo copies of #)I# Attested paid copy of #hallan Attested paid copy of allotment order Possession Irder Acknowledgement of Possession 7ite Plan ransfer Irder

Issuance of allotment orderL ,. 2. Affidavit on =s.,3AQ non9%udicial stamp paper duly attested. Attested photo copy of #)I#

2+

?.

Attested photocopy of all paid challans.

Mutation $y registered 7ale <eedL ,. 2. ?. /. 6. J. 4. 2nd copy of =egistered 7ale <eed on =s.,3AQ non 1udicial stamp paper Attested photo copy of #)I# of Attorney Press notification <eed of =edemptionA)oc from loan giving agency in cases where An Affidavit in cases where permission to AssignAMortgage issued Indemnity Bond on =s.?3AQ non 1udicial 7tamp paper from the Proof of construction a. #ompletion certificate of Building #ontrol Authority I= $. #ertificate from SH) concerned I= c. Paid copy of #hallan of Property a' -. ,3. ,,. ,2. ,?. ,/. ,6. Photo copies of all paid challans Attested photo copy of allotment order Attested photo copy of possession order Attested photo copy of Acknowledgement of Possession Attested photo copy of 7ite Plan Attested photo copy of ransfer order Attested photo copy of =egistered Lease <eed

Permission to MortgageAAssign has already $een issued $y Authority. $y Authority has not $een utili(ed. RendeeApurchaser

Pre9lease transfer $y 1oint declarationL ,. Iriginal #opy of Agreement to 7ell on )on91udicial 7tamp Paper as ,. 2. directed $y the govt. on different si(e of plot. attested photocopy of ).I.# of ransferA ransfereeAAttorney *if any5

2,

?. /.

Press )otification *7pecimen KA+5 Attested photo copy of Power of Attorney *if any5 ransfereeA7eller and ransfereeAPurchaser within *7pecimen KB E #+5.

6.Indemnity Bond on =s.63AQ non %udicial 7tamp paper for the J.Proof of #onstruction a. #ompletion #ertificate of Building #ontrol Authority I= $. Paid copy of oldest challan of Property a'! P 9,! P 9,3. 4. Attested Photo copies of all Paid #hallans *Dive )o. of #hallans along 8ith original. .. Attested Photocopy of Allotment Irder! along with original. -. Attested Photo copy of Possession Irder! along with original ,3. Attested photo copy of Acknowledgement of Possession along with Iriginal ,,. Attested photo copy of 7ite Plan along with original ,2. Attested photo copy of ransfer order along with original ,?. Attested colour Photograph of 7eller and Purchaser )oteL *All Iriginals will $e returned after scrutiny5 ransfer $y DiftL In case of transfer of property $y gift! following documents are re:uired $y the HB"#. ,. <eclaration of Dift on =s.,33AQ )on91udicial 7tamp paper *in original5 duly attested $y MagistrateA)otary Pu$lic *in case of attestation $y the )otary pu$lic )otary 7tamps to $e affi'ed5 I= 7econd copy *on =s.,33A9)on 1udicial 7tamp5 of the =egd.Dift <eed. 2. Press notification9inviting o$%ections to the proposed mutationAtransfer on the $asis of Dift.

2-

?. Indemnity Bond on =s.63AQ non91udicial papers from <onor and <onee /. Attested Photo copies of )ational Identity #ards of $oth donor and <onne. 6. 7earch #ertificate *in cases of Leased plot5 from the date of lease up9to9date. J. in case Permission to Mortgage has already $een issued! either $oth copies of Permission to MortgageAAssign $e surrendered! or )I# form the Loan Diving Agency for the proposed mutation $e su$mitted or an affidavit to the effect that the Permission to MortgageAAssign was not utili(ed *specimen KH+5 or <eed of =edemption $e su$mitted. 4. Proof of construction i.e. a. #ompletion #ertificate of Building #ontrol Authority. Ir $. #ertificate from SH) concerned. Ir c. Paid copy of challan of Property a'. .. -. Photo copies of all paid challans *Dive )o. of #hallan5 Attested Photo copy of Allotment Irder! along with original

,3. Attested Photo copy of Possession Irder! along with original ,,. Attested Photo copy of Acknowledgement of Possession along with Iriginal ,2. Attested photo copy of transfer orders along with original ,?. Attested Photo copy of transfer orders along with original ,/. Photographs of <onor! <onee :. o. to $o',(ete ,ro,erty do$%'ents *his is the most important part. Mostl% customers are una"are of its significance. Eith out proper documentation %ou cannot establish a relationship "ith &B'(. =uring m% sta% at &B'(, I obser$ed that there "as no room for flexibilit% in this area and e$er% one "as $er% strict about it.

26

<4 Ho= to 5ecome titleholder o* land /cenario 1 If %ou ha$e a piece of land in %our possession b% $irtue of allotment letter

/tep b% step procedure in$ol$ed

he allotment is not reckoned as title documents to land. he plot against

allotment order is transfera$le after completion of the legal formalities of the Housing Authorities in the name of my other person! who is interested to purchase the land from the allotteeAtransferee of land from the open market. he plot is transfera$le from one person to another person till e'ecution of the 7u$9 LeaseALease. Authorities. Lease <eed is a title document therefore! if you are holding allotment of land in your name and want to $ecame a titleholder of the land then you should contact with the Authori(ed Ifficer of the scheme for e'ecution of Lease <eedA7u$ LeaseALease BAC E Lease BBC * as the case may $e 5 7teps involved ,. 2. ?. Under the rules! the allottee of land will $e re:uired to deposit the dues of he concerned agency i.e. ;<AA;M#A<HAA#<AAL<AA L<A etc will issue Having cleared the outstanding dues of land the allottee will o$tain he procedure for transfer of plot is different in all the Housing

the land *if any5@ a $ill of the due amount against land in favour of allottee@ prescri$ed $lank file! on payment of re:uired amount of fee! from the nominated $ranches of the commercial $ank and after completing the re:uired formalities ! as mentioned in the file! apply to the authori(ed officer of the $ody for e'ecution of the Lease <eedA Lease BAC E Lease BBC in his favour@ /. he Authori(ed Ifficer! after o$servance of re:uired procedure will issue three $lank LeaseA7u$ Lease and Lease BAC E Lease BBC to the allottee for the 2.

stamping of prescri$ed value of =sTTTT on the first page of LeaseA7u$ Lease and License from the reasury Iffice of the Dovernment@ 6. After stamping on the LeaseA7u$ Lease and Lease BAC E Lease BBC! the applicant will re:uest the concerned officer for the e'ecution of the LeaseA7u$ Lease and Lease BAC E Lease BBC! in the 7u$ =egistrar Iffice. J. he Authori(ed Ifficer of the department will fi' date for e'ecution of the LeaseA7u$ Lease and Lease BAC E Lease BBC! in favour of the applicant $efore the 7u$ =egistrar. After registration of the LeaseA7u$ Lease ad Licensee BAC! the =egistrar+s Iffice will issue a slip for o$taining the =egistered LeaseA7u$ Lease and Lease BAC E Lease BBC! after one month or so. Ince the LeaseA7u$9Lease and Lease BAC E Lease BBC is e'ecuted Aissued $y the department concerned you $ecome the titleholder of the propertyAland for a specified period of time mentioned therein

/cenario 2
If %ou ha$e purchased the land< propert% simpl% on allotment letter through a /ale Agreement 7tep9$y9step procedure involved he allotment is not reckoned as title documents to land. he plot against

allotment order is transfera$le after completion of the legal formalities of the Housing Authorities in the name of my other person! who is interested to purchase the land from the allotteeAtransferee of land from the open market. he plot is transfera$le from one person to another person till e'ecution of the 7u$9 LeaseALease. Authorities. he procedure for transfer of plot is different in all the Housing

2!

Lease <eed is a title documents for availing loan from loan giving agency! therefore! if you have purchased a piece of land comprising simple on allotment and the transaction of saleApurchase is made through a simple sale agreement and you intend to $ecome a titleholder of the land then you are re:uired to contact with the Authori(ed Ifficer of the scheme for e'ecution of Lease <eedA7u$ LeaseA7u$ LeaseC AC* as the case may $e. he allotment is not reckoned as title documents to land. he plot against allotment order is transfera$le after completion of the legal formalities of the Housing Authorities in the name of my other person! who is interested to purchase the land from the allotteeAtransferee of land from the open market. he plot is transfera$le from one person to another person till e'ecution of the 7u$9 LeaseALease. Authorities. Lease <eed is a title documents for availing loan from loan giving agency! therefore! if you have purchased a piece of land comprising simple on allotment and the transaction of saleApurchase is made through a simple sale agreement and you intend to $ecome a titleholder of the land then you are re:uired to contact with the Authori(ed Ifficer of the scheme for e'ecution of Lease <eedA7u$ LeaseA7u$ LeaseC AC* as the case may $e 5 7teps involved ,. Under the rules! the purchaser of land will $e re:uired to deposit the dues of the land *if any5@ 2. he concerned agency i.e. ;<AA;M#A<HA will issue a $ill of the due amount against land in favour of allotteeA purchaser@ ?. Having cleared the outstanding dues of land the purchaser will o$tain prescri$ed $lank file! on payment of re:uired amount of fee! from the nominated $ranches of HBL and after completing the re:uired formalities ! as mentioned in the file! will apply to the Authori(ed officer of ;<AA;M#A<HA 7cheme for transfer of land in his favour@ he procedure for transfer of plot is different in all the Housing

21

/. he Authori(ed Ifficer! after o$servance of re:uired procedure will issue transfer letter in favour of the purchaser@ 6. he ne't step which is re:uired to follow after the issuance of ransfer Irder!

$y the purchaser is to apply to the concerned Authori(ed Ifficer of ;<AA;M#A<HA for e'ecution of lease deed in his favour. J. he purchaser will $e re:uired to o$tain prescri$ed $lank file! on payment of

re:uired amount of fee! from the nominated $ranches of HBL and after completing the re:uired formalities ! as mentioned in the file! will apply to the Authori(ed officer of ;<AA;M#A<HA 7cheme in the for e'ecution of the Lease <eedALicense in his favour@ 4. he Authori(ed Ifficer! after o$servance of re:uired procedure will issue three $lank LeaseA7u$ Lease and Lease BAC E BBC to the allottee for the stamping of prescri$ed value of =sTTTT on the first page of LeaseA7u$ Lease and License from the reasury Iffice of the Dovernment@. .. After stamping on the LeaseA7u$ Lease and Lease BAC E BB! the applicant will re:uest the concerned officer for the e'ecution of the LeaseA7u$ Lease and Lease BAC E BB in the 7u$ =egistrar Iffice. -. he Authori(ed Ifficer of the department will fi' date for e'ecution of the LeaseA7u$ Lease and Lease BAC E BB in favour of the applicant $efore the 7u$ =egistrar. ,3. After registration of the LeaseA7u$ Lease ad Lease BAC E BB! the =egistrar+s Iffice will issue a slip for o$taining the =egistered LeaseA7u$ Lease and Lease BAC E BB after one month or so. Ince the LeaseA7u$9Lease and 7u$Lease BAC E BB is e'ecuted Aissued $y the department concerned you $ecame the titleholder of the propertyAland for a specified period of time mentioned therein o. to &et a,,ro*ed +%i(din& ,(an and .hy it is ne$essary

+7

0aising construction "ithout ha$ing a building plan appro$ed from the concerned agenc% is a $iolation of rules of the concerned Building (ontrol Authorit% and can lead to demolition of construction. *herefore, for all practical purposes i.e. before raising construction, appro$ed building plan and its appro$al letter is mandator%

/teps in$ol$ed
1. *he indi$idual should contact a licensed architect for the preparation of building plan of the propert%F 2. *he required amount of fee of the (ontrolling authorit% should be deposited in the designated branches of the ban# before submission of building plan for obtaining appro$al of the concerned Authorit% +. &a$ing deposited the fee, the Architect shall submit the proposed plan in the (ontrolling Authorit% office for its appro$alF ,. (urrentl% in 6arachi 6B(A is appro$ing building plan "ithin three da%sF o. to o+tain ,er'ission to assi&n or No;o+<e$tion $ertifi$ate and .hy it is ne$essary It is mandator% for a$ailing loan from an% loan gi$ing agenc% that prior permission should be obtained b% the intending borro"er from the concerned land allotting agenc% to the effect that the agenc% has no obGection in assigning the land for a$ailing loan.

'or the issuance of @5(F 1. Hou should approach the concerned <epartment for o$taining the Permission to assign or )I# *as the case may $e on the prescri$ed form $y attaching the re:uired documents mentioned in the form. 2. he concerned department after e'amination of the documents will issue a challan in your favour for deposit in any authori(ed Branch

+1

?. After deposit of the fee! su$mit the challan in the concerned department for issuance of permission to assign. /. he concerned department after checking the documents the concerned department is issued the a$ove documents within one month. 6. If you have purchased the plotAflat and ac:uired the title from any #ooperative Housing 7ocieties A Builders then permission to assign will $e issued $y the concerned #ooperative Housing 7ociety and Builder in their own letterhead

@;(3@on ;ncumbrance (ertificate

,. he 7u$ =egistrar concerned issues )H# *)on9encum$rance certificate5 to

the titleholder of land showing therein the historyAevent of Lease <eedA7u$ LeaseA License and su$se:uent since inception to9date@ 2. "or o$taining the a$ove documents! you should apply on the prescri$ed form along with a photo copy of Lease <eed and a nominal fee of =sTTTT.for the )H# through challan in the reasury <epartment@ ?. In case there is any su$se:uent transaction then photo copy of 7ale <eedA#onveyance <eed and photo copy of Mutation should also $e attached with the application@ /. he 7u$ =egistrar Iffice on receipt of the documents E payment of fee will

normally issue the )H# within one week M%tation $ertifi$ate Mutation is in fact a document! which forms $asis for transformation of proprietary rights in the record of concerned land allotting agency. Mutation is conventionally involved in case a Leased property is purchased $y an individual through a 7ale <eedA ransfer <eed! e'ecuted in the office of the 7u$9

+2

=egistrar . he prime purpose for issuance of Mutation certificate is to $ring change of ownership in the record of land allotting agency. 7teps involved "or issuance of mutation certificate! apply on prescri$ed form in the concerned department with the following documentsL9 ,. Photo copy of Lease <eed@ ?. Photo copy of #)I# of the seller@ /. Photocopy of 7ale <eedA ransfer <eed 6. he concerned <epartment on receipt of the a$ove documents and e'amination of case will issue payment challan of the prescri$ed fee in your favour@ J. Pou should deposit the challan fee in the authori(ed $ranch of Bank@ 4. In receipt of the payment challan! the concerned department will issue mutation certificate in your favour with a copy endorsed to the old owner =. List of do$%'ents re)%ired +y BFC

LI7 I" I LH <I#UMH) 7 I" ALL <I7 =I# I""I#H7 14 6A0A(&I =III/I5@

2easehold properties
1. 2. +. ,. 2ease</ub 2ease</ub 2icense /ale =eed 3if there is subsequent transaction4 :ift =eed 3If propert% is gifted4 ;xchange =eed 3if )ropert% is acquired in exchange4.

'ree hold properties

1. 2. =egistered 7ale deed Last 1ama Bandi I= #ertified copy of #ity 7urvey e'tract I= <eh "orm ++

?. /. 6. J. 4. .. -. ,3. ,,. ,2.

Dift <eed *If property is gifted5 H'change <eed *if Property is ac:uired in e'change5. MutationA ransfer Permission to Assignment )H# A *7earch #ertificate5 7ite Plan Building Plan duly approved along with approval letter MutationA ransfer )H# 7ite Plan Building Plan duly approved along with covering letter

25 I7LAMABA< *#API AL A=HA5 E I HH= #I IH7 I" I7LAMABA< &I)H 1. 2. +. ,. -. 6. .. !. Allotment 2etter<*ransfer order )ermission to Assign /ite )lan< 2a%out )lan =emarcation (ertificate Jp to date @;( Appro$ed<0e$ised Building plan along "ith appro$al letter (ertificate of soundness<$alue of building for house purchase )ossession order<slip

3a4 'ree hold properties 3Jrban4 1. 2. +. ,. -. 6. .. 0egistered /ale deed<:ift =eed 2ast >amabandi, or cit% sur$e% record Mutation or sa#ni certificate from *ehsildar if plot is /hamile Abadi Area A#se /haGra dul% demarcated /ite )lan Jp to date @;( Appro$ed Building )lan

+,

3b4 'ree hold propert% 30ural4

*he follo"ing documents are required in addition to abo$e documentsB 1. 2 27 from *ehsildar 2. (o sharer Affida$it 3in case of co sharer4

3c4 2ease hold propert%

1. 2ease deed</ub 2ease dul% registered 2. :20 3:eneral 2and 0egister4 +. )ermission to Assign ,. )ossession order -. /ite )lan of )lot 6. Jp to date @;( .. Appro$ed Building )lan !. 2etter of appro$al of the building plan

3d4 Allotted 2and 3in :o$ernment /cheme4

Allotment order<transfer order

3e4 ;$acuee )ropert%B

1. 2. +. ,. -. 6. )ermanent *ransfer =eed )* 1 /ubsequent *ransfer Jpto date @;( /ite )lan 5riginal Appro$ed Building plan "ith appro$al letter

?5 MUL A)ABAHA8ALPU= <IRI7II)

3a4 'ree hold properties 3Jrban4

1. 2. /ale =eed<:ift =eed<;xchange =eed<(ourt =ecree (ourt certified cop% of Mutation

+-

+. ,. -. 6.

(op% of record of 0ight 3'ard Mal#i%at4 A#s e /haGra @.;.(. for last 12 %ears Appro$ed Building plan K Appro$al letter

3b4 Jrban area land "here no record is a$ailable in 0e$enue =epartmentB

1. 2. +. ,. -. 6. .. ).*.=. (onfirmation of ).*.=. )* I @.;.( 3for the last 12 %ears4 (learance certificate from ;xcise ? *axation =epartment Building plan K Appro$al letter Indemnit% Bond regarding finalit% of ).*.=.

3c4 2ease &old )ropert%B

1. 2. +. ,. -. 6. 2ease =eed</ub 2ease =eed ;xtract from :20 )ermission to Assign Building )lan K Appro$al letter @.;.(. from the date of 2ease =eed Appro$ed Building )lan

3d4 :o$ernment (olonies< 2ease &old )ropertiesB

1. 2. +. ,. -. 6. .. /ale Agreement dul% registered Allotment order )ossession /lip /ite )lan )ermission to Assign @.;.(. 3from the date of /ale Agreement4 Building )lan K Appro$al 2etter

+6

3e4
1. 2. +. ,. -. 6. ..

0ural Area propert%B

5ral Mutation 3(ourt (ertified (op%4 Building )lan K Appro$al 2etter Mutation 3(ourt (ertified (op%4 (opies of 0ecord of 0ight 3'ard Mal#i%at4 for the 2ast 12 Hears 2 27 3&B'( 2td.<(ertificate of Assurance4 b% tehsildar a. 3/a#ni (ertificate4 A#s e /haGra @.;.(. 3for the last 12 Hears4

/5 UUH

A A BALU#HI7 A)

*a5 Lease hold properties 1. 2. +. ,. -. 6. .. !. 2ease =eed /ale =eed 3in case of subsequent transaction4 Mutation 'ard >amabandi 0ecord /ale =eed 3in case there is subsequent transaction 30egistered4 )ermission to assign @.;.(. from the date of lease deed Appro$ed Building )lan

*$5 "ree Hold Property *=ural E Ur$an Area5 1. 2. +. ,. -. 6. .. /ale =eed 30egistered4 Mutation in 'a$or of Applicant 'ard >amabandi 0ecord for last 1- %ears Building )lan "ith Building )ermit @.;.(. A#se /haGra +.

!.

/a#ni (ertificate

*c5 "ree Hold Property *with no sale deed5L 1. 2. +. ,. -. 6. .. Mutation in 'a$our of applicant 'ard >amabandi 0ecord 2 27 3(ertificate of Assurance4 Building )lan "ith Building )ermit @.;.( A#se /haGra

*d5 Lease Hold cases of #antonment Area 1. 2. +. ,. -. 6. 2ease =eed 30egistered4 /ale deed 3In case of a subsequent *ransaction4 /ite )lan @on ;ncumbrance (ertificate )ermission to Assign 32 114 Building )lan "ith Building )ermit

*e5 Lease Hold cases where land leased $y MunicipalA own #ommittee! Local Dovt.! Provincial Dovernment. ,. 2. ?. /. 6. *f5 2ease deed 3)atta4 0egistered /ite )lan @.;.(. )ermission to Assign 32 114 Building )lan "ith Building )ermit

Uuetta <evelopment Authority #ases *where still the cost of land has not yet 1. 2. /ale<)urchase Agreement /ite )lan )ermission to Assign 32 114

$een paid fully5

+!

+. ,.

@.;.(. Building )lan "ith Building )ermit

3g4 Luetta =e$elopment Authorit% (ases 3"here the cost of 2and has completel% been paid 1. 2. +. ,. *h5 1. 2. +. ,. -. 6. .. 'inal *ransfer =eed 30egistered4. /ite )lan @.;.(. Building )lan "ith Building )ermit Uuetta <evelopment Authority #ases *where the house has $een /ale =eed 30egistered4 'ard >amabandi 0ecord for last 1- %ear @.;.(. /ite )lan Building )lan "ith Building )ermit )ermission to Assign

constructed and investment is re:uired for further construction5L

65 LAHI=HADU1=A)8ALA <IRI7II) *a5 "ree Hold PropertiesL 1. 2. +. ,. -. 6. .. 0egistered /ale =eed (ertified cop% of Mutation >amabandi 2 27 3In case of rural area4 A#se /huGra @.;.(. Building plan "ith appro$al letter

*$5 Dovernment 7chemesL

+1

1. 2. +. ,. -. 6. ..

0egistered /ale Agreement</ale =eed *ransfer letter<Allotment letter )ermission to assign )ossession order /ite )lan @.;.(. Building )lan "ith appro$al letter

*c5 Lease Hold E #ontentment 7chemes 1. 2. +. ,. -. 6. 0egistered 2ease deed</ub 2ease :eneral 2and 0egister 3(ertificate4 )ermission to assign @.;.(. /ite )lan Building )lan "ith appro$al letter

J5 7U;;U=A LA=;A)AA 1A#IBABA<A <A<UA ;HAI=PU= Ur$an Area 1. 2. +. ,. -. 6. .. !. 1. 17. 11. 12. /ale =eed ).*.=. '.*.5. :ift deed 2ease =eed</ub lease deed (it% /ur$e% ;xtract =eh 'orm II =eh 'orm III Mutation /ite )lan @.;.(. )ermission to Assign

,7

1+.

Appro$ed Building )lan "ith appro$al letter

0ural Area
1. 2. +. ,. -. 6. *a5 1. 2. +. ,. -. 6. .. *$5 ,. 2. ?. /. 6. *c5 5"ner /hip (ertificates issued b% Jnion (ouncil Authorities 5"ner /hip (ertificate issued b% Mu#htiar#ar concerned =eh 'orm II @.;.(. Appro$ed Building )lan =e$elopment (ertificate issued b% Jnion (ounci "ree Hold property *Ur$an Area5 /ale deed, :ift deed 30egd4 Mutation 'ard >amanbandi A#s e /hiGra @.;.(. Appro$ed Building )lan "ith appro$al letter Hvacuee Property *Ur$an Area5 P <AP I #onfirmation of P < *Permanent ransfer deed5 ).H.#. Approved Building Plan with approval letter Permission to Assign

45 "AI7ALABA<A7A=DI<HA <IRI7II)

"<AAPun%a$ Dovt. Housing 7cheme *Ur$an5 7ale Agreement *=egd5 Allotment order ransfer letter *in case if applica$le transfer of plot5 Possession slip ).H.#.

,1

Permission to Assign Approved Building Plan with approval letter *d5 ,. 2. ?. /. 6. J. #antonment Board *Ur$an Area5 Lease deed MHI letter #opy of D.L.=. Permission to assign ).H.#. Approved Building Plan with approval letter

*e5 =ural AreaL 1. 2. ?. /. 6. J. 7ale <eed Mutation or Iral Mutation 1ama$andi L923 *Assurance certificate5A<emarcation #ertificate ).H.#. Approved Building Plan with Approval letter from <istrict #ouncilAUnion #ouncil concerned .5 ABBI ABA<AHA&A=A <IRI7II)A)I= HH=) A=HA7

*a5 Lease Hold PropertiesL ,. Lease deed or agreement for saleA7ale deed 2. 7ite plan of the plot ?. Permission to Assign /. ).H.#. 6. Approved Building Plan with approval letter *$5 "ree Hold PropertyL ,. 2. Mutation Last 1ama$andi

,2

+. /. 6. J. 4. ..

7ale deed *in case property is purchased $y applicant5 Aks9e97ha%ra 7ite plan Assurance #ertificate *L923 in case of =ural Area5 ).H.#. Approved Building Plan with approval letter.

*c5 Un97ettled Area of )orthern AreasL ,. 2. ?. /. Un9settled area form *designed $y HB"# Ltd. Management5 L923 ).H.#. Approved Building Plan with approval letter

*-5 HP<H=ABA<A MI=PU=;HA7 <IRI7II) *a5 "ree hold properties *=ural Areas5L ,. ,. 2. ?. /. 6. J. 4. L923! Iwnership #ertificate duly issued $y the aluka Mukhtiarkar or 7anad <eh "orm9RII <eh "orm9II *Mutation5 ).H.#. for last ,2 years Approved Building Plan with approval letter Approved 7ite Plan Akse97ha%ra

*$5 "ree Hold Property *Ur$an Areas5L ,. 2. ?. P. .I.AP. .<A7ale <eedADift <eed #ity 7urvey H'tractA<eh "orm9II *Mutation5 7tatement issued $y the Legal Heirs along with copy of statement from #ity 7urvey in cases of heirship

,+

/. 6. J.

).H.#. for last ,2 years Approved Building Plan with approval letter Approved 7ite Plan

*c 5 Lease Hold PropertyL ,. 2. ?. /. 6. J. 4. .. Lease <eedA7u$9Lease <eedA7ale <eedADift <eed <eh "orm9II *Mutation5 Allotment order Permission to Assign *L9,-5 ).H.#. from the date of e'ecution of lease deed Approved Building Plan with approval letter Approved 7ite Plan

*d5 #antonment AreasL ,. 2. ?. /. 6. J. *,35 1. 2. ?. /. 6. J. 4. Lease <eed H'tract of the Property #learance #ertificate from MHI Permission to Assign *L9,-5 Approved Building Plan with approval letter Approved 7ite Plan PH7HA8A= <IRI7II)A )8"P 7ale <eed Lease <eed Dift <eed Permanent ransfer <eed in case of Hvacuee Property *P <5 Mutation #ertificate Permission to Assign Approved Building Plan with approval letter

*a5 Lease Hold PropertiesL

,,

.. *$5 ,. 2. ?. /. 6. J. 4. =.

Approved 7ite Plan "ree Hold PropertiesL Last 1ama$andi or #ity 7urvey H'tract 7ale <eed *in case of purchase5 Mutation #ertificate of Assurance $y #ollector ).H.#. Aks9e97ha%ra Building Plan Pro$ed%re of &ettin& finan$e fro' BFC.

3"or construction cases only5

STEP ;8 *P=H9 =HDI7
=A II)A RH=I"I#A II) P=I#H775

i.Please o$tain an application form and $rochure from any of HB"# Ltd.+s district officesA HB"# Ltd. representative offices or download the same from our we$site *www.h$fc.com.pk5. of the $rochure ii. <etail of documents to $e attached with the application form is availa$le on the $rochure. iii. <eposit application fee in H.B.L. as per following scheduleL he addressesAtelephone num$ers of our <istrict IfficesArepresentative offices are also availa$le on we$ site as well on the $ack

Applications "ee Paya$le Applications Applications Applications toA$ove E up A$ove to up to A$ove =s.,!333!333 E up to =s.2!633!333 Applications A$ove =s.2!633!333 for Houses A Up

"lats Located =s.?33!333 =s.?33!333 =s.633!333 E =s.633!333 =s.,!333!333

,-

=s.,6!333A9 8ithin Munici =s.6!333A9 pal *within #antonment Area5 iv. Under HB"# Ltd. Dhar Aasan scheme! you can avail L9 ,. "inancing on the $asis of rates of your plot given in the collector inde'@ and 2. In case you do not agree with the rates of your plot given in the collector inde'! you may have the market value of your plot assessed from an approved valuer of Pakistan Bank Association. "or this purpose please follow *a5 to *d5 $elowL9 a5 $5 c5 List of the approved valuer is availa$le in our officesAwe$ site and in the he fee paya$le to the valuer would range $etween =s.,633A9 to 7u$mit a pre9drafted application! mentioning therein the name of the valuer Duidelines *see anne'ure5 =s.2633A9 paya$le directly to the valuer. of your choice from the list of approved valuers availa$le in the Duidelines *see anne'ure5 d5 plan. Attach photocopies of the saleAlease deed Aallotment letter and $uilding limit =s.4!333A9 =s.,3!333A9 =s.26!333A9

Rerification procedure 7u$mit complete set of the title documents mentioned and marked * su$mitted for the attestation purposes only5. Proof of income of the applicant or guarantor! as the case may $eL , "or salaried persons. 5 in the $rochure with following additional papers. *the original papers are to $e

,6

*7alary certificate5 2 "or $usinessmen Aprofessionals * a'payers5 *Income ta' assessment order for the last two years5 ? "or $usinessmenAprofessionals *non ta' payers5 *Affidavit on prescri$ed value stamp paper duly attested $y the notary pu$lic5 / "or Agriculture Income *Proof of landholding! income certificate from the =evenue Ifficer5 6."or overseas Pakistanis. Income proof certificate duly attested $y Pakistan Hm$assy@ #opy of all pages of Passport attested $y Pakistan Hm$assy@ #opy of #)I# attested $y Pakistan Hm$assy@ Undertaking $y applicant attested $y Pakistan Hm$assy@ Deneral Power of Attorney attested $y Pakistan Hm$assy@ #omputeri(ed )ational Identity #ardL *#)I#5

J #opies of the #)I# of the applicant and guarantor $oth. Please $ring original #)I#s for attestation purposes Duarantor+s documentsL If investment is applied on the $asis of guarantor+s income then please su$mit Duarantor Ks :uestionnaire form and letter of guarantee! on prescri$ed formats !duly filled in and signed $y the guarantor.

Medical H'amination In case the financing amount e'ceeds =s.? Million! medical e'amination of the applicantAguarantor from 7LI#+s approved doctor is re:uired. tests to $e paid to the doctor directly. he list of 7LI#+s approved panel of doctors can $e o$tained from our offices. he fee and cost of

,.

he overseas Pakistanis can have medical e'amination from a government hospital of the country of residence and su$mit after having it attested from em$assy of Pakistan. Pou will $e informed once valuation Averification of your case is completed.

HP

F 2 *=HDI7

=A II) A)<

7A)#

II)5

i. Please o$tain )H# from the office of the su$ F=egistrar! where your lease deed is registered. Ii 7u$mit original receipt of application fee deposited and )H# iii. I$tain Account num$er. And receipt of documents. iv. 8ait for the sanction@ you will $e informed telephonically and through mail. 7 9? *<I7BU=7HMH)
A)< =HDI7 =A II) I" A77ID)MH) <HH<5

HP I.

P=I#H<U=H "I= =HLHA7H I" ,7 #HHUUH

8hen you receive callAletter from the <istrict Iffice that your investment has $een approved! please immediately visit the office along with original title documents. "ollowing formalities are to $e completed $efore release of Ist che:ueL9 , 7ign the repayment schedule E o$tain copy whereof. 2 7u$mit original title documents and o$tain receipt. ? <eposit advance insurance premium V =s.3.63A9 per thousand per month in HBL / 7u$mit application for the inspection of site *copy is availa$le at anne'ure of the Duidelines5 if the construction is complete upto the re:uired level as mentioned in Acceptance letter against ,sttrench. 6 7u$mit one copy each of the prescri$ed letter of continuity E promissory note! duly typed on stamp paper of =s.,33A9 each.

,!

J 7u$mit post9dated che:ues *as per schedule of payment5. *Please note if investment has $een sanctioned on guarantor+s income post9 dated che:ues are to $e issued $y the guarantor of his own $ank aAc5. 4 I$tain three $lank copies of the deed of assignment and get the adhesive stamps *e:uivalent to the rate mentioned in the scheduleW $elow5 affi'ed! on one of the copies! from the treasury office of the <istrict. Please do not fill the deed yourself to avoid mistakes. . Ince the a$ove work is complete! make an appointment with the concerned officer of HB"# Ltd. to accompany you to the office of the concerned 7u$9 =egistrar where your agreement will $e registered and che:ue of Ist installment will $e delivered in the presence of the 7u$9=egistrar. Please do not forget to $ring your original I.<. #ard and cash amount e:uivalent to the registration fee given in the following schedule Province Baluchistan )8"P 7indh Pun%a$ #ost of adhesive stampW =egistration "eeWW 2G of the sanctioned amount ,G of the sanctioned amount /G of the sanctioned amount 3.6G of the sanctioned amount 3.2G of the sanctioned,G X 6 rupees per page of the amount 3.26G of amount the sanctioned amount sanctioned3.26G of the sanctioned amount

ii. P=I#H<U=H I =HLHA7H 2)< #HHUUH , 7u$mit application for site inspection if construction is complete up to the re:uired level mentioned in the acceptance letter against 2 nd trench. 2 7u$mit one copy each of the prescri$ed letter of continuity E promissory note! duly typed on stamp paper of =s.,33A9 each. ? #ollect letter from HB"# Ltd. for getting the lien marked in the office of the concerned authority! cooperative society or cantonment $oard and in case of free

,1

hold property for mutation in =evenue record in favour of HB"# Ltd. * his should $e su$mitted in the district office at the earliest possi$le.5. / #ollect your che:ue from the office K)e't day+ of the su$mission of the a$ove documents iii. P=I#H<U=H I =HLA7H ?=< #HHUUH , 7u$mit application for site inspection if the stage of construction is complete as mentioned in the acceptance letter against ?rd trench. 2 7u$mit letter confirming marking of lien in 7ocietyAAuthorityA#antonment Board recordA=evenue record.*if not already su$mitted5. ? 7u$mit one copy each of the prescri$ed letter of continuity E promissory note! duly typed on stamp paper of =s.,33A9 each. / #ollect your che:ue from the office K)e't day+ of the su$mission of the a$ove documents Iv. P=I#H<U=H I =HLHA7H /
H

E "I)AL #HHUUH

,. 7u$mit application for site inspection if the stage of construction is complete as mentioned in the acceptance letter against last trench. 2. 7u$mit one copy each of the prescri$ed letter of continuity E promissory note! duly typed on stamp paper of =s.,33A9 each. ?. #ollect your che:ue from the office K)e't day+ of the su$mission of the a$ove documents *"or Purchase cases only5 Pre9 registration stepL ,. After finali(ing the purchase of the selected property enter into a 7ale Agreement with the seller with *B the B5 condition that you will o$tain investmentAfinancing facility from the HB"# Ltd. * <raft of the sale agreement is availa$le in Duidelines at anne'ure 2 . =e:uest the owner of the property to provide you a complete set of the photocopies of all the original documents of the house to $e purchased.

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?.

Along with the 7eller visit our <istrict Iffice for attestation of the original

documents. he <istrict Manager after attestation of the original documents will return the same to the owner of the house and $ased upon the photo copies of the title documents! process the case under the rules. MAI) <I#UMH) 7 =HUUI=H "I= #I)7 =U# II) I" HIU7H ,. Application form duly filled in 2. "ee payment receipt from the Bank. ?. Photo copies of #omputeri(ed )ational Identity #ard duly attested on $oth sides for #IB purpose /. Approved Building Plan with approval letter. 6. hree coloured passport si(e photographs of the applicantAguarantor he following documents will $e re:uired in addition to the documents mentioned a$oveL ,5 1oint application of the seller and purchaser 25 7ale agreement $etween seller and the purchaser on stamp paper of e'isting prescri$ed value duly attested $y )otary pu$lic or Iath #ommissioner ?5 <raft of sale deed *which should $e got e'amined $y the Manager *Law5 of the (one or legal advisorApanel advocate as the case may $e. /5 7oundness and valuation certificate from any approved valuer of Pakistan Banks Association. *<ownload list of approved valuers from HB"# Ltd. we$site5. 65 In case of purchase of house the valuation must $e done $y two valuers. However! in case of purchase of a flat! the valuation will $e done $y single valuer only@ J5 he applicant shall pay the valuation fee to the valuers through pay order drawn in favour of the #ompany. 45 7ale <eed will $e e'ecuted on the face value thereof according to the valuation ta$le provided $y the Provincial Dovernment under 7ection 249A of the

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7tamp duty Act or on the amount sanctioned $y HB"# Ltd. for the investment whichever is higher. .5 In case the intending partner is not interested to avail Investment for houseAflat purchase at the de$t e:uity ratio $ased on the market value hisAher re:uest will $e considered at the de$t e:uity ratio $ased on the total cost of houseAflat as assessed $y the HB"# Ltd. on #ollector Inde' rates! su$%ect to ade:uacy of repayment capacity. -5 7u$%ect to ade:uacy of age! income and ma'imum limit of investment the admissi$ility of investment will not e'ceed .3G of the forced sale value determined $y the valuer or <istrict Manager *whichever is lower5. ,35 Under House purchase cases the original documents will $e su$mitted $y the purchaser at the time of e'ecution of 7ale <eed and Assignment <eed simultaneously. ,,5 ,25 he approved investment under Bhouse purchaseAflatC will $e dis$ursed he moratorium period in house purchase case will $e 2/ months during in one installment@ which the purchaser will pay only #orporation+s share in monthly rent. *It is at the option of the partner5. ,?5 In House Purchase #ase! payment of rent will commence from the very ne't month of the release of first and final installment.

House Purchase *restriction5L ,. House Purchase facility will $e availa$le only in Ur$an areas of <istrict and ehsils. 2. "or the purpose of house purchase no transaction will $e allowed $etween $lood relations such as father! son! $rother! sister! wife and hus$and etc. ?. Houses facing coastal areas where age of the house e'ceeds 23 years shall not $e eligi$le for investment.

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Procedure for valuation of the house as per market valueL9 List of the approved valuer is availa$le in our offices as well as on we$ site or in guidelines a5 7u$mit a pre9drafted application *see in guidelines at anne'ure you will select the name of the valuer from the list of approved valuers5 $5 c5 Attach photocopies of the 7ale <eedALease <eedAAllotment Letter and he fee paya$le to the valuer would range $etween =s,633A9 to =s.2633A9. It Building Plan. is paya$le through BPay IrderC to $e drawn in favour of the Raluer and is re:uired to $e handed over to the <istrict Manager who will deliver the same to the Raluer on receipt of BRaluation =eportC from him. Proof of income of the applicant or guarantor! as the case may $eL9 ,. "or salaried persons. *7alary certificate5 2. "or ?. "or /. "or $usinessmen Aprofessionals * a' ta' payers5 payers5 *income *affidavit ta' on assessment order for the last two years5 $usinessmenAprofessionals Agriculture *non of prescri$ed stamp paper duly attested $y the notary pu$lic5 Income *Proof landholding! income certificate from the =evenue Ifficer5 6. "or overseas Pakistanis. J. Income proof certificate duly attested $y Pakistan Hm$assy@ 4. #opy of all pages of Passport attested $y Pakistan Hm$assy@ .. #opy of #)I# attested $y Pakistan Hm$assy@ -. Undertaking $y applicant attested $y Pakistan Hm$assy@ ,3. Deneral Power of Attorney attested $y Pakistan Hm$assy@ #omputeri(ed )ational Identity #ardL *#)I#5

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#opies of the #)I# of the applicant and guarantor $oth. Please $ring original #)I#s for attestation purposes Duarantor+s documentsL If investment is applied on the $asis of guarantor+s income! please su$mit DuarantorKs :uestionnaire form and letter of guarantee! on prescri$ed formats! duly filled in and signed $y the guarantor.

Medical H'amination for investment e'ceeding =s. ? Million 7 In case the financing re:uired e'ceeds =s. ? Million! medical e'amination of the applicantAguarantor from approved doctor is re:uired. he list of 7LI#+s approved panel of doctors can $e o$tained from our offices. he fee and cost of tests to $e paid to the doctor directly. he overseas Pakistanis can have medical e'amination from a government hospital of the country of residence and su$mit after having it attested from em$assy of Pakistan.

HP

F 2 *=HDI7

=A II) A)<

7A)#

II)5

,. I$tain )H# from the office of the su$ F=egistrar! where your lease deed is registered. 2. I$tain Account )o. and receipt of documents. ?. 8ait for the sanction@ you will $e informed telephonically and through mail. P=I#H<U=H "I= =HLHA7H I" APP=IRH< I)RH7 MH) I) PU=#HA7H #A7HL As soon as you receive the callAletter that your investment has $een approved $y HB"# Ltd.! visit the HB"# Ltd. <istrict office and complete the following formalities for the release of che:ueL9 ,. he <istrict Manager will hand over the copy sanction letter E repayment schedule and will o$tain your signature for receipt of the a$ove papers.

-,

2. <eposit 2/ months advance insurance premium V =s.3.63A9 per thousand per month in HBL. ?. 7u$mit application *on pre9drafted specimen is availa$le in guidelines at anne'ure B Bfor the inspection of site to the <istrict Iffice for inspection of the site and drawl of site inspection reportAcompletion report. /. 7u$mit letter of continuity E promissory note on 7tamp paper of =s.,33A9E 233A9 *as the case may $e5. 6. 7u$mit 26 post9dated che:ues *as per 7chedule of payment5 and the <e$it Authority. *Please note if investment has $een sanctioned on guarantor+s income post9 dated che:ues are to $e su$mitted $y the guarantor of hisAher own $ank aAc5 *Inly HBL account5. J. I$tain from the <istrict Manager three $lank copies of the <eed of Assignment and get the adhesive stamps from the treasury office of the <istrict. <o not fill the <eed yourself to avoid mistakes. It is advisa$le to first get the draft of sale deed duly approved $y the Manager *Law5 of the (one or the Panel Advocate! and get the same typed on the stamp paper of prescri$ed value. 4. After completion of the a$ove! su$mit the a$ove documents in the concerned <istrict Iffice. <istrict Manager will depute a HB"# Ltd. Authori(ed Ifficer to accompany you to the office of the concerned 7u$9=egistrar where <eed of Assignment and Partnership as well as 7ale <eed will $e registered simultaneously and che:ue of approved investment will $e handed over to you in the presence of the 7u$9=egistrar. .. HB"# Ltd.+s authori(ed officer will o$tain the original documents of the property to $e mortgaged. Pou must $ring the original I.<. #ard and cash amount e:uivalent to the registration fee as per schedule How to purchase land and property his is of key importance to know how to purchase land and $uilding. At the HB"#! we were supposed to guide customers a$out purchasing of land or any kind of property.

--

)ow I will descri$e what I learnt from HB"# a$out purchasing land and property. "irst! I will descri$e you the parameters on which we should focus while purchasing the land. Duideline how to purchase the piece of land from the open market ,. 7elect the localityAareas as well as the price range for purchase of the landAplot@ 2. After selection of the area! first survey the area and assess that the necessary infrastructure i.e. water! sewerage! Hlectric! Das and transport are easily availa$le@ ?. he area you are interested to purchase the plot should $e leased hold@ /. After selection of the plot enter into a sale agreement with the seller on a stamp paper of =s. ,33A9 duly attested $y )otary@ 6. If you are purchasing the plot! you should pay ,3G of the total value of the plot as token money to the seller at the time of the agreement and o$tain receipt of token money on prescri$ed revenue receipt value@ J. I$tain the photocopies of all the documents and contact the concerned departmentsAoffices for verification of the genuineness of the documents. 4. Hnsure to pu$lish notice in )ews papers that you have entered into an agreement with the seller and if any person*s5 have any o$%ection he may inform to the concerned department within ,6 daysL .. After the e'piry of the period given in the pu$lic notice! approach the concerned <epartment i.e. ;<AA<HAA;M#AM<AAL<AA#<A etc. or Private #ooperative Housing 7ocieties for the transfer of plot In your name with the following documentsL9 a. Iriginal copy of agreement to sell on non 1udicial 7tamp paper@ $. Attested photo copy of )I#s of ransferorA ransfereeAAttorney@ c. Press notification d. Indemnity Bond on =s. 63A9 non %udicial stamp paper for the transfereeA7eller and ransfereeAPurchaser@

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e. Paid copy of oldest challan of property ta' P 9I and P 9,3 f. Attested photocopies of all paid challans@ g. Attested photocopy of allotment order@ h. Attested photocopy of Possession order@ i. Attested photocopy of acknowledgement of Possession@ %. Attested photocopy of 7ite plan@ k. Attested photocopy of transfer orders@ l. Attested color photograph of seller and purchaserL -. he concerned department after e'amination of the a$ove documents will

issue a challan for transfer of plot in your name. ,3. Pou should pay the challan issued $y the concerned department in the authori(ed Branch within due date@ ,,. After payment of the challan in the authori(ed Branch of Bank! you should su$mit the duly paid challan in the concerned department with the application for the issuance of transfer letter in your favour ,2. he authori(ed Ifficer of the department under the e'isting rules will fi' the date for recording of the statement of seller and you $efore him@ ,?. After recording of the statement of seller and you! the authori(ed officer will process the case for transfer of plot in your name. ,/. he concerned department will issue the transfer letter within the prescri$ed period in your favour Duideline for how to purchase a houseAflat ,. 7elect the localityAareas as well as the price range for purchase of the houseAflat 2. After selection of the area first survey the area and assess that the necessary infrastructure i.e. water! sewerage! Hlectric! Das and transport are easily availa$le@

-.

?. he area where you are interested to purchase the houseAflat should $e leased hold@ /. race out the houseAflat through Hstate Agency or through personnel level@ 6. After selection of the houseAflat enter into a sale agreement with the seller on stamp paper of =s. ,33A9 duly attested $y )otary with two witnesses@ J. "or purchase of houseAflat you may pay ,3G of the total value of the houseAflat as token money to the seller at the time of the agreement and should o$tain receipt of token money on prescri$ed revenue receipt value and photo copy of the following documents for verification of the genuineness of the documents from the concerned departmentL9 a. Allotment letter $. Possession order c. 7ite and su$9divided site plan d. All paid utility $ills and challans e. Approval and completion of the $uilding plan f. #ompletion certificate g. ransferAMutation Irder *In case where sale deed is e'ecuted su$se:uent to Lease <eed5 h. Power of Attorney! duly e'ecuted in the office of the 7u$9=egistrar concerned. 4. Also ensure to pu$lish notice in )ewspapers that you have entered into an agreement with the seller of the property and if any person*s5 have any o$%ection heAthey may inform the concerned department within period mentioned in the notice. .. during the intervening notice period get prepared the draft of 7ale <eed to $e e'ecuted $etween you and seller! through an Advocate. -. After e'piry of period mentioned in the pu$lic notice! get prepared through an Advocate the original 7ale <eed and purchase the adhesive revenue stamps from the reasury <epartment on the prescri$ed rate of the Provincial Dovernment for affi'ing on the 7ale <eed $efore e'ecution of the same.

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,3. Hnsure that the photos of the seller and yourself is pasted on the first page of 7ale <eed ,,. he Advocate should also prepare the 2 nd copy 7ale <eed on stamp paper of =s.,33A9 for mutation after e'ecution of the 7ale <eed. ,2. Det prepare the Pay order in favour of the seller of the $alance amount *Price of the houseAflat agreed minus the token amount paid5 so that the same may $e handed over to the seller at the time of e'ecution of the 7ale <eed. ,?. he procedure re:uires that the 7eller along with you shall appear on the fi'ed date $efore the 7u$ =egistrar for e'ecution of the 7ale <eed. <o not forget to $ring the Iriginal Identity #ard and some money for payment of registration fee and advocate fee. ,/. After e'ecution of the 7ale <eed! ensure to collect all the original documents of the property from the seller and vacant possession of the houseAflat with keys of the locks $efore the =egistrar and then hand over the pay order to the seller. ,6. he =egistrar Iffice will also issue a receipt for o$taining the registered original 7ale <eed on due date =egistrar Iffice. ,J. In receipt of the original 7ale <eed from the 7u$ =egistrar Iffice you should apply the concerned department for Mutation 7o! in short with in first two weeks I $asically learnt a lot a$out the documentation and loaning procedure of HB"# along with some general knowledge regarding the property and its transactions. Besides! I also gained a valua$le e'perience in respect of customer relations and customer satisfaction. he original receipt of the =egistrar office may $e kept in safe custody and on due date ensure to collect the same from the

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9;

y t)ird #nd fourt) ,ee- #t HBFC8 My third and fourth week were spent in studying files and it

was a very good practice as I practically found out what they * HB"# 5 do while esta$lishing a relationship with the customer and what happens with that file when the relationship has $een esta$lished. 8hile doing the case studies! I found the practical application of various documents. there. 7ince contents of every file differ a little $it due to the specific circumstances of every case or customer! the overall contents generally remain the same. )ow let me share with you some of the general contents of each file ,. ourney file. It is a printed9paper in which the %ourney of the file is e'plained i.e. 8hen the customer came 8hen the case was registered 8ho was the dealing officer 8hen were the documents of property received 8hen was the case sent to higher authorities for review 8hen the relevant higher authority gave the approval and 8hen the amount was dis$ursed to the client My most significant finding in this conte't was the se:uence in which all the documents were piled up and their reason of $eing

67

his paper is always placed in the start of the file. 7o that when ever any one sees the file! he may update his $asic information a$out the case! client and progress made $y the HB"# in the specific time period. 2. Credit proposal. It is %ust like a feasi$ility report in which we account for his re:uest of credit $y comparing his re:uest with his repayment capacity. It is also a printed format in which His demand of credit is written His income is listed And $ased on his income his repayment capacity is calculated And considering his repayment capacity loan sanctioned is mentioned on the credit proposal. ?. Partner collection detail report. It is a report in which the detail of all collection from the client is written. 8henever he will pay his monthly installment! it would $e entered into the report /. !chedule of pay"ent. 8hen the agreement $etween HB"# and client is finali(ed! HB"# gives the customer schedule of payment in which all payments to $e made $y the client are recorded periodically. his schedule is given to the customer for his guidance and to let him know the pattern and se:uence of payment in advance 6. Receipt of original docu"ents.

61

It is a list of all documents received from the customer. It is signed $y $oth the customer and the authority. It is meant for keeping record and acknowledgement of receipt of client+s documents. J. #udited partner collection detail report. 8hile going through HB"#!s client file one will come across this document num$er of times. Any time9to9time changes or its reviewing and rechecking will lead to the generation of new partner collection detail report.

4. H$%C&s inspection report. 8hen customer comes to HB"# for the purpose of getting loan for construction and renovation of their houses! HB"# has to ensure that the loan is solely used for the purpose of construction or renovation of house. o ensure this HB"# regularly inspects the site of construction or renovation and after each inspection! HB"# places the report of inspection in the file of the customer .. Copy of property docu"ents. he photo state copy of every document is placed in the file. It is the compulsory ingredient of every file -. 'utation in favor of H$%C. Pou cannot get a loan from HB"# until you put a mutation in favor of HB"#. It is a security i.e. you have to transfer your property in the name of HB"#.

,3. 'ortgage deed.

62

7ince in HB"#! relationship $etween the customer and HB"# is $ased on mortgage! so all the terms and conditions of the mortgage are written and signed $y $oth the parties commonly known as mortgage deed.

,,. $orrower(s basic fact sheet. In this paper all the $asic facts a$out the customer and his property are written for the information of authority. ,2. )nvest"ent disburse"ent vouchers. After the clearance of all the stages! finally HB"# issues the che:ue to the customer and copy of each che:ue is put in the file. ,?. #cknowledge"ent of disbursed che*ues. Hach che:ue! s acknowledgement is pasted in the file for record so that customer cannot deny the fact. ,/. List of agree"ents between client and H$%C. In this part of file all! the agreements $etween the customer and HB"# are placed. hese agreements include Promissory note Letter of continuity Islamic house financing agreement Undertaking to purchase musharka units Letter of guarantee to HB"# Undertaking $y the guarantor and Proposal of investment

,6. 'onthly pay"ent agree"ent

6+

It is also an agreement $etween HB"# and client in which client agrees with the monthly payment schedule of HB"# ,J. 7ite plan or na:sha An approved site plan or na:sha of $uilding is put in the file as it is mendatory. ,4. Pre audit checklist It is a checklist which tells us the name of documents that must $e audited or checked whether they have $een placed in the file or notY If present a tick should $e marked on the name of specific document or if not then state the reason. ,.. Client personal detail. Is also mentioned in the file as an introduction of the client. In this page! usually following information a$out the client is mentioned )ame of the client Age of the client His annual income His address His reason of HB"#!s client Purpose of his loan taken )ame of hisAher guarantor Amount of loan <uration of loan )o. of dependants Age of guarantor Income of guarantor =elationship with the guarantor and Area and worth of house mutated in favor of HB"#

6,

,-. +"ploy"ent/business detail. In this Performa! the detail of client+s current and previous employment or full detail of his $usiness is listed. It is placed in the file due to the fact that the loan is given to the customer on the $asis of his income

23. Property infor"ation. In this document all the information regarding the property of the client is given for the purpose of information and record 2,. +sti"ations by the H$%C. In this part evaluation of the income of the client and the evaluation of the property $y the HB"# itself through independent evaluators is written. 22. #udit proposal. In this part the auditors of the HB"# proposes the amount of loan sanctioned $ased on their study of all documents and circumstances of the customer. 2?. P,C. 7tands for post dated che:ues. In this document the list of all the post dated che:ues given $y the client to the HB"# is included 2/. Collection report. his paper shows all the che:ues of the client cleared $y the $ank in the account of HB"# on $ehalf of the customer. 26. )nde"nity bond

6-

In this $ond customer undertakes that all the information provided $y him is correct and if HB"# suffers a loss due to the inaccurate information provided $y the client then the client will $e held responsi$le for such loss. 2J. ,eclaration of no default. In this declaration customer declares that he has never $een declared as a defaulter $y any means 24. -ndertaking "inally an undertaking is given $y the customer that all the information and documentation provided $y him is true and fair in every sense to the $est of his knowledge. 7o! in short in third and fourth week I learnt a$out the documentation and the construction of the file. It was a good learning e'perience for me.

My 5th and 6th week in HBFC.

M% -th and 6th "ee# "ere spent in the audit department "here I "as engaged in the $arious acti$ities under the super$ision of Mr. /aGGad saeed 3manager audit4. In these t"o "ee#s there "as not a significant challenge posed to me. I "as engaged in routine "or# and there "as not a "ide scope of learning in these circumstances. *he nature of m% "or# in this department "as of chec#ing and re$ie"ing "hether all the formalities ha$e been fulfilled or not. /o let me brief %ou about m% acti$ities at the audit department.

1.
of

File reviewin
*he first step, I "as taught "as the file re$ie"ing. It includes chec#ing

66

!re audit list

It is a chec#list "hich tells us the name of documents that must be audited or chec#ed "hether the% ha$e been placed in the file or notM If present a tic# should be mar#ed on the name of specific document or if not then state the reason.

!ro"erty documents.
I had to ensure that all the propert% documents had been recei$ed, signed, and ac#no"ledged b% the rele$ant authorities.

Customer collection re"ort.

I "as also responsible to ensure that the latest and accurate customer collection report dul% signed b% the manager accounts "as there for the audit.

2.

#econciliation
Besides file re$ie"ing, the maGor tas# in the audit department "as to *his

reconcile the ban# collection report "ith the customer collection report. reconciliation in$ol$es the follo"ing steps.

*o get the latest ledger account and the customer collection report from the accounts department. *o chec# the customers cheques gi$en to &B'( for the purpose of repa%ment and matching it "ith the deposit slips presented to the &B'( b% the client. @ext step "as to $erif% the collection b% reconciling the &B'( record, (ustomer has presented deposit slips and Ban#8s statement.

6.

$. %erification
Another tas# I performed frequentl% in the audit department "as the $erification of the cheque numbers and amount sent to the ban# b% the &B'( for clearing "ith the ban# collection report 3"hich sho"s the list of cheques cleared and the amount transferred to the &B'(, s ban# account4

&. '(servations.
Means obGections. Ehen the higher authorities 3 zonal auditor 4 sees an% discrepanc%, he puts an obGection o$er it. /o it "as our dut% to remo$e that obGections or obser$ations and report bac# to zonal or head office.

My )th week at HBFC.

M% .th "ee# "as spent in reco$er% department it "as the most entertaining "ee# in m% internship. &ere I "as under the super$ision of Mr. /hau#at ali 3manager reco$er%4. &e "as $er% nice and #ind to me. &ere I learnt ho" to reco$er %our mone% and "hat are the tools and tactics reco$er% department use to reco$er their amount. /ince it is required b% the &B'( that e$er% cheque should be cleared b% the 17th of that month. In case it is not cleared b% the 1-th of that month, reco$er% procedure starts. &ere is the brief description of m% all "or# acti$ities in the reco$er% department. *o ma#e a list of current month not cleared cheques. *o ma#e a list of non cleared cheques of all pre$ious month. @o" ma#e a single list of all cheques along "ith the addresses and contact numbers of that indi$iduals. @o" start reminding people b% calling them on their contact numbers

*his "as the summar% of m% "or# acti$ities at the reco$er% department.

6!

My final week at HBFC.

M% last "ee# in &B'( "as Gust li#e a mixture. I "as eager to learn more and more and due to this burning desire, I Gust performed couple of acti$ities in the last "ee#. M% first t"o da%s "ere spent in the )ost =ated cheque =epartment also #no"n as the )=(. In )=(, I learnt about &o" to arrange the chequeboo#s And ho" to ma#e a list of current month due cheques and pre$ious month due cheques. /ince, &B'( recei$es cheque boo# in ad$ance so "e ha$e to ta#e care that if the cheque boo# is going to finish "e ha$e to intimate the customer about this fact. /o that he can lodge a ne" cheque boo# in time. Muhammad 0ashid 3a former hoc#e% pla%er4 "as the incharge of )=( department and he "as $er% #ind to me. I "ill remember him in m% good "ords al"a%s. M% next t"o da%s of last "ee# "ere spent in t%ping. /ince an audit, team from head office "as there to audit all the files and operations and our manager "as liable to ans"er all their queries and obser$ations so he Gust dictated me and I "as there to "rite it on the electronic official pad of &B'(. 'inall%, it "as m% last da% in the &B'( and I Gust met m% seniors and than#ed them for their guidance and support through out m% internship, in response the% "ished me $er% good luc# in m% future and blessed me "ith their pra%ers.

F*+,+C*,- ,+,-./*/ 'F HBFC

61

*his section comprises of $ertical and horizontal anal%sis of balance sheet and horizontal anal%sis of profit and loss along "ith their interpretation. /ince, it is not a public organization so I faced man% problems in finding its financials. @o" let me sho" %ou m% "or# on the financials of house building 'inance (orporation.

%ertical analysis of Balance sheet.

,ssets with res"ect to total assets 2717 (ash and balance "ith treasur% Ban#s Balance "ith other ban#s 2ending to financial institutions In$estments Ad$ances 5perating fix assets =efer tax assets 5ther assets -.1-N 177N 1.7- N 177N 1+.,,N 177N .11N !.1!N 11.26 N 6-.71N 1.21N +.-!N 1.7+N 1+.-+N .1.11N 1.++ N 1.,6N .171N 11.1N 61.+2N 1.+2N .2.N 2771 .2..N 277! .11.N

*+T0#!0#T,T*'+1
5$erall, the "eightage of assets "ith respect to total assets remained the same. Ad$ances form the maGor part of total assets, as "e #no" it is a financial institution and its sur$i$al $er% much depends on the disbursement of amount. MaGor change in 2771 comes in the form of lending to financial institutions, "hich increased in 277! from 7.17N to 1.7+N of total assets and in 2771, it Gumped to !.1!N of total assets, "hich is a significant increase. It sho"s that in 2771, &B'( $ested more amount in form of lending to financial institutions i.e. it has utilized its idle mone%. 'rom the balance sheet, "e can see .7

that &B'(,s balance has been decreased significantl% "ith other ban#s as it dropped from +.-!N of total assets in 277! to 7.11N in 2771 that sho"s &B'( has "ithdra"n its mone% and in$ested them . Another "orth noting change "as gradual decrease in other assets "hich "ere 1+.,,N of total assets in 277. and the% decreased to 1.7-N of total assets in 277! and finall% to -.1-N in 2771. *his sho"s that the organization is tr%ing to full% utilize their resources and con$erting an% idle or non "anted asset into functional part ma% be b% con$erting them to cash and then in$esting that mone% in the form of disbursement or lending to financial institution.

-*,B*-*T*0/ 2*TH #0/!0CT 'F T'T,- -*,B*-*T*0/

2717 /hare capital Borro"ings 0eser$es Accumulated loss 5ther liabilities 16.2!N 61.1+N 2.6+ N -..! N 1...+ N 177N 2771 1-..1N .7.!,N 2.6.N -.61N 1-..1N 177N 277! 1-.-1N 6..-!N 2.!!N +.!6N 1...1N 177N

.1

*+T0#!0#T,T*'+1
&ouse Building 'inance (orporation "as $er% much consistent "ith the percentage "eightage of the liabilities in all the respecti$e %ears. *here "as no significant change in an% of the liabilit%. &o"e$er, "e can notice the nominal changes among the borro"ings and the accumulated loss. Borro"ings form the maGor part of the liabilities and the% increased in 277! as the% became the .7.!,N of total liabilities, ho"e$er borro"ing sho"ed a slight decrement in 2771 b% becoming the 61N of liabilities. Apart from borro"ings, accumulated loss also suffered some minor changes in these %ears. It "as +.!6N of total liabilities in 277. increasing up to -.61N of liabilities in 277! and then finall% to -..!N in 2771 subsequent increment in the accumulated loss in the subsequent %ears is "orth "orr%ing for the &B'(. Instead of accumulating this loss should be set off

H'#*3'+T,- ,+,-./*/ 'F B,-,+C0 /H00T.

H'#*3'+T,- ,+,-./*/ 'F ,//0T/. 2717 2771 2771 (ash and balance "ith treasur% Ban#s Balance "ith other ban#s 2ending to financial institutions In$estments Ad$ances 5perating fix assets .,.2,N .7+.,2N ,,.1+N ..-,N ...-N 16-.!2N 2+.-2N 2+.-,N 2-.+1N !.+.N .2 7.11N 2771 277! 277! -1.67N

=efer tax assets 5ther assets ,2.,,N 2..2!N

*+T0#!#0T,T*'+1
&orizontal anal%sis faced drastic changes "hen compared the assets of &B'( "ith that of pre$ious %ears. (ash and balance "ith treasur% ban# remained almost same in 277! and 2771 ho"e$erF it increased -1.6N in 277! as compared "ith that of in 277.. *hese abrupt changes "ith in three %ears sho" ne" management8s radical changes in their polic%ma#ing. /ame is the case "ith the balance "ith other ban#s, "hich increased 16-.!2N in 277! and then decreased up to .,.2,N in 2771. it sho"s that compan% has "ithdra"n their idle mone% from the ban# and utilized them in the form in$estment and lending "hich increased .7+.,2N in 2771. In$estment also increased ,,.1+N in 2771 &o"e$er, ad$ances and other assets faced the declining trend in 2771 depicting the organization8s focus on the lending.

H'#*3'+T,- ,+,-./*/ 'F -*,B*-*T*0/

2717 2771 277! Borro"ing /hare capital 0eser$es Accumulated loss 5ther liabilities 2..+N 1.11N -1.16N 1+.1-N 1.11N 2771 277! 277. 1+.1-N

*+T0#!#0T,T*'+
*he trend of abrupt and irregular changes "as also ob$ious in the horizontal anal%sis of liabilities. /hare capital and reser$es remained the same in 277., .+

277! and 2771.Ehereas, borro"ings decreased in 2771 that "ere increased in 277! b% 1+.1-N. =ecrease in other assets and decrease in borro"ing can be related in a "a% that organization is tr%ing to fulfill its monetar% need from its o"n resources. Accumulated loss increased in 2771 b% 2..+N putting a doubt on the organization8s abilit% to reco$er its loss, "hich is gro"ing regularl%. 0emaining items "ere not listed here because Gust li#e share capital and reser$es there "ere no changes in them in these %ears.

H'#*3'+T,- ,+,-./*/ 'F !#'F*T ,+D -'//.

2717 2771 2771 Mar#up interest earned Mar#up interest expensed @et interest income 0e$ersals made against non )erforming loans 0econciliation adGustments 0e$ersal of rental income @et mar# up interest income after )ro$ision =i$idend income 5ther income *otal non mar# up interest income Admin expenses 5ther pro$ision 5ther charges !..-.N !6.-!N -.-2N 1!.-. 61.-.N !..-N 1,.++N 1+.11N 1,.1!N !.77N 66.17N 1!.7+N 21.7,N .6..1N +!.26N 1!!..2N 1-.!+N 6.+!N ,2.,+N ,6.,-N 2771 277! 277! 1..+N +!1.++N ,.76N 12..72N

.,

*otal non mar# up interest expense )rofit and loss before tax *otal tax loss after tax ;arning per share

-..!N -6.22N 12.7.N 12.6,N 12.1.N

-.77N 171.1.N 1,.2-N +2.61N +2.1!N

*+T0#!#0T,T*'+1
>ust li#e the balance sheet, profit and loss is no longer exception. Mar# up interest earned in 2771 increased b% 1-.!+N "hich sho"s &B'(,s positi$e impact of increased lending to financial institutions. *his also led to the ,2.,+N increase in net interest income in 2771. Mar# up interest expense "hich increased +!1.++Nin 277! "as too much too bear. It made the management to decrease their borro"ing, "hich "e can see from the balance sheet as the% decreased in 2771 b% 1.11N. *his also made an impact on the profit and loss account and net mar# up income after pro$ision increased 21.7,N in 2771. &o"e$er, total non mar# up income decreased in 2771 mainl% due to decrease in other income 3 !..-.4 of the organization. /imilarl%, total non mar# up interest expense increased -..!N in 2771 despite of despite of decrease in admin expenses 3 -.-2N4 in 2771. this increase in total non mar# up expense can be best explained b% the drastic increase 361.-.N4 in other charges of the organization 2oss after tax decreased significantl% in 2771 3 12.1.N4 mainl% because of pa%ment of all defer tax "hich resulted in the reduction of tax b% 12.7.N in 2771. ;arning per share also dropped to .71 from 1.2! of 277!.

.-

/uggestions for Impro$ements

)roper "or#ing en$ironment should be pro$ided /trictl% fixed timings for launch, pra%er and tea brea#s *here should be Gob rotation among the emplo%ees to remo$e the bore side of
"or#

*here should be dead line for each Gob assigned to e$er% emplo%ee )a%ment procedure should be fast in order to get maximum consumer satisfaction :et together and informal meeting should be there in the department "here all the
emplo%ees could share their $ie"s "ith not onl% one another but also the :M

'riendl% competition should be created bet"een the emplo%es some moti$ational acti$ities should be adopted li#e nominating the Cemplo%ee of
the "ee#D

/eparate procedure
/teps should be ta#en for impro$ing coordination and remo$ing barriers of producti$e communication among the emplo%ees

emplo%ees should be offered some promotions in designations on the basis of

extra qualification and experience for moti$ation purpose

en$ironment should be made sophisticated instead of disgusting beha$iors among

the emplo%ees

.6