1. Introduction

These Terms and Conditions govern the Islamic home financing products and services offered by Asaan Ghar Finance Limited (AGFL). By applying for Islamic home financing with the Company, you (“Customer”) agree to be bound by these Terms.

  1. Financing Principles

The Company offers Islamic home financing based on Shariah compliant principles. Our financing structures will utilize concepts on Diminishing Musharakah (Sharikah-tul-Milk) to facilitate house financing.

  1. Eligibility
  • To be eligible for Islamic home financing, you must:
    • Be of minimum age of salaried person from 25 to 60 and for business person 25 to 65 (as defined by Company policy).
    • Meet minimum income requirements 70,000 pkr/.
    • Have a positive credit history (if applicable).
    • Provide all necessary documentation.
  1. Financing Options

AGFL offering 5 different Products which are:


  1. Home Purchase: In Home Purchase, AGFL will provide financing for the purchase of already built house or In such cases, sales staff will ensure that the property does not fall under the restricted areas as prescribed in Standard Credit Policy.
  2. Home Renovation: For the property already owned by the customer, AGFL will provide the facility for renovation/expansion in the existing property under Home Renovation In such cases, the payment


will be made in tranches as defined in Operational Policy (upto Rs. 1 million in single tranche, Rs. 1 million – Rs. 6 million in 2 tranches).

  • Home Construction: In cases where the customer already owns a piece of land / plot, AGFL will provide financing for the construction over the said plot under this product program. BOQs will also be obtained in such cases. Payment will be made in maximum 4 tranches. These tranches will be disbursed after the satisfactory report from the valuator regarding the completion of earlier
  1. Land + Construction: Under this product, AGFL will provide financing to the customer for the purchase of land and construction thereupon. However, not more than 50% of the total financing limit will be disbursed for purchase of land. Remaining amount for the construction purpose, will be disbursed in 3 tranches upon satisfactory report of completion from valuator for every stage as per


Balance Transfer Facility (BTF): Balance transfer facility of the customers already availing the housing finance facility from the banks can be a good option to generate business. In such cases the properties are already identified and are legally verified from the lawyers. AGFL staff by using their contacts can approach those customers for balance transfer from AGFL.


  1. Profit Rate & Revision

As per the product offering, profit rates will remain fixed for first 3-5 years and will be revised after that on the financing anniversary. Similarly, the rates will be revised again after every 3-5 years till the maturity of contract.

Operation Department will be responsible for the rate revision on the decided dates after which a revised rental payment schedule will be generated and shared with the customer and get it signed

  1. Property Valuation

Financing provided against any property is dependent upon the assessed market value and forced sale value of the property. As per the Credit Policy of AGFL, financing amount of the property should not be greater than the forced sale value as assessed by the valuator.

For this purpose, Operation Department will arrange the valuation of the property proposed for financing from a valuator in AGFL’s approved Valuator List. In case if the financing amount is greater than Rs. 10 million, valuation will be conducted by 2 valuators and the average valuation of both amounts will be considered for financing. The valuation report will also highlight if there is any major or minor violation has been undertaken in construction as against the approved building plan.

For a valuator to be eligible for conducting the valuation of property, it should be on approved panel of Pakistan Banks Association (PBA)as required by SECP.

Valuation charges will also be paid by the customer through a cheque, Inter Bank Funds Transfer & pay order in favor of valuation agency.

  1. Financing Term

You and the Company will agree on a financing term for your home financing plan for 3 to 20 years.

  1. Monthly Rental Payments & Settlement

Customer will deposit his/her monthly installment into Asaan Ghar Finance Limited Collection account thorough PDC & Inter Bank Funds Transfer. Operation Department confirmation from Finance Department after confirm of available funds in collection account Operation Department run monthly installment in LMS System and will automatically park the funds in receivable and income GL.

  1. Early Settlement

Early settlement of the contract is allowed. Customer will be required to make written request to AGFL for the early settlement. Operation Department will share the settlement amount along with the revised unit price (if applicable) with the Salesperson who will share the same with customer. Sales team will also prepare the Exit Documents which will be signed by the customer.


After realization of the settlement amount in AGFL’s collection account, Operation Department will post the funds in the respective GL accounts and will mark the contract as settled in the AGFL’s internal system. After the settlement, Operation Department will proceed for the release of property documents.

Schedule of is as follows:

1st year

4.5% of outstanding amount

2nd year

3.0% of outstanding amount

3rd year

1.5% of outstanding amount

4th year onwards

No charges.


Revised unit priced may not be offered upon the approval from MANCOM


  1. Partial payment

Customer is allowed to make partial payment upto 25% of the outstanding principal amount during a calendar year without any additional charges at least after the 6 monthly installments. Customer will be required to make written request to AGFL. Operation Department will share the partial payment amount with the Salesperson who will share this calculation with the customer. After realization of the partial amount in AGFL’s collection account, an addendum to the original Payment Agreement and Undertaking to Purchase would be signed with the Customer and revised rental payment schedule will be shared with the customer accordingly. In case of Home Renovation, Home Construction, Homeland Plus Construction & Balance Transfer Facility partial payment will be allowed after 12 Months of release last trench amount.


If the customer requests to pay more than 25% of the amount during the year, AGFL will revise the unit price as per the below schedule.


7th month to 12 months

4.5% of outstanding amount

2nd year

3.0% of outstanding amount

3rd year

1.5% of outstanding amount

4th year onwards

No charges.


Revised unit priced may not be offered upon the approval from MANCOM.


  1. Property & Life Takaful

Sharia-compliant property & life Takaful may be required as a condition of financing.

  1. Shariah Compliance

The Company is committed to Sharia compliance in all its financial products and services. A Shariah compliance department oversee the Company’s operations and day to day activity to ensure adherence to Islamic principles.

  1. Charity and Late Payments

In case if the payment from the customers is delayed and monthly payment is not made on the due date, a penalty will be charged to the customer which will be Rs. 100/- per day. However, the penalty will not be charged up to 7 days after the due date after which the late payment charges will be calculated from day 1. This amount will be recorded under the Head of Charity and will be donated to organizations / foundations which are approved by Shariah Advisor. All the Charity amount of late payment will be charged at the time of Final settlement and recover from customer.




  1. Term Termination

The Company may terminate the financing agreement in case of breaches of these Terms or non-compliance with Sharia principles.


  1. Legal Agreement & Documents

These Terms constitute the entire agreement between you and the Company regarding Islamic home financing and supersede any prior or contemporaneous communications or agreements.


  1. Severability

If any provision of these Terms is found to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall remain in full force and effect.


  1. Waiver

No waiver of any breach of these Terms shall be deemed a waiver of any subsequent breach.


  1. Contact Us

For any questions regarding these Terms or Islamic home financing products, please contact the Company at 0213-4300802-3.