GharHo provides Shariah-compliant home financing solutions for low-income earners in Pakistan, utilizing a proprietary risk scoring model tailored for the informal employment sector. The startup addresses the lack of affordable housing options by offering financing for home purchases, renovations, and construction, with limits ranging from PKR 500,000 to PKR 30,000,000.
Funding
Funding not disclosed
Founders
Product
Problem
Access to affordable home financing in Pakistan is limited, particularly for low-income earners and those employed in the informal sector who often lack the credit history and documentation required by traditional lenders. This lack of access prevents many from purchasing, renovating, or building homes, hindering their ability to improve their living conditions and build wealth.
Solution
GharHo provides Shariah-compliant home financing solutions tailored to the needs of low-income individuals and those in the informal employment sector in Pakistan. Utilizing a proprietary risk scoring model, GharHo assesses creditworthiness based on alternative data sources and offers financing for home purchases, renovations, and construction. The company operates on the Islamic finance principle of Diminishing Musharakah (joint ownership) and partners with Microfinance Institutions (MFIs) to extend its reach and leverage their local market expertise. GharHo also facilitates access to the Government Mark-up Subsidy Scheme (G-MSS) to further reduce the cost of financing for eligible customers.
Target Audience
GharHo's primary target audience includes low-income earners and individuals employed in Pakistan's informal sector who are seeking affordable, Shariah-compliant home financing solutions.
Features
- Shariah-compliant financing based on Diminishing Musharakah.
- Financing limits ranging from PKR 500,000 to PKR 30,000,000.
- Proprietary risk scoring model tailored for the informal employment sector.
- Facilitation of access to the Government Mark-up Subsidy Scheme (G-MSS).
- Partnerships with MFIs for local market reach and expertise.
- Financing available for home purchase, renovation, and construction.
- Allows balloon payments and full repayment after one year.
- Option to add co-borrowers.
- Financing can be used for investment properties (rental).