Under the arrangement, FMFB shall provide need-based, short to medium term financial services (housing finance) for both structural and non-structural improvements in the houses. FMFB would provide loans amounting from PKR 10,000 - 500,000 to poor individuals in a group at a relatively lower interest rate to help the poor build social and physical capital over time. For structural house improvements, the clients would save prior to the release of the loan to build up their equity contribution, as well as save after disbursement to mitigate any cash flow changes over time. To support the clients in repayment, a grace period would also be provided to them during the construction period.
AKPBS,P shall provide technical consultancy to the client for developing a sketch of the proposed construction/improvement and monitoring construction of the houses to ensure safe built environment and mitigate natural risks. Seismic resistance, sanitation and energy efficiency are aspects which have been made an integral part of the product design.