Banks must give housing-loan customers a signed receipt listing the original property documents they have taken, under new instructions issued by the State Bank of Pakistan on October 9.
The requirement gives borrowers a written record of the title and ownership papers held by their lender.
The central bank has also told banks and development finance institutions to collect only the property documents listed in its prescribed schedule.
What changes for borrowers
Customers handing over original title documents should receive a signed acknowledgement identifying the papers submitted. The rule is intended to make the process clearer and reduce disputes over documents held by banks.
For housing loans of up to Rs5 million, lenders may also use a lien recorded with the relevant land authority instead of relying solely on other mortgage arrangements.
That option is permitted, not mandatory. Borrowers should ask their bank which security arrangement applies to their loan.
The amendment also allows certain renewable-energy financing arrangements using installed equipment, such as solar panels and inverters, as security or without separate security.
The new instructions do not automatically change loan eligibility, interest or profit rates, or approval times.
Borrowers can consult the State Bank circular and ask their lender for the current list of required documents.
Source: State Bank of Pakistan, Circular No. 06 of 2026, October 9.