The government has introduced a new housing finance scheme titled “Mera Ghar, Mera Aashiana,” designed to make home ownership more accessible for low-income citizens.
The initiative, launched on Wednesday, provides markup subsidies and a risk-sharing mechanism to ease housing finance. According to the State Bank of Pakistan (SBP), it targets citizens holding a valid CNIC who do not already own a residential property in their name.
Under this program, financing can be availed for several purposes, including purchasing a house or flat, constructing a new house, building on an already-owned plot, or buying a plot along with construction. Eligible units include houses up to five marla and apartments up to 1,360 square feet.
Financing is available through commercial banks, Islamic banks, microfinance institutions, and the House Building Finance Company Limited (HBFCL).
The loan structure is divided into two tiers. Tier 1 offers loans up to PKR 2 million at a fixed markup rate of 5%, while Tier 2 covers loans between PKR 2 million and PKR 3.5 million at a fixed markup rate of 8%.
The maximum loan tenure is 20 years, with the markup subsidy applicable for the first 10 years. Borrowers are required to provide 10% equity, while banks will finance up to 90% of the property value.
Banks will set interest rates based on 1-year KIBOR + 3%, but the scheme ensures no processing charges or prepayment penalties. To minimize risks, the government has pledged a 10% first-loss cover on the outstanding portfolio.
The SBP has directed Participating Financial Institutions (PFIs) to promote the scheme through branch networks and other channels, prepare their systems for smooth implementation, and prevent misuse.
Applications can be submitted through participating banks, each of which may outline its own specific requirements for processing loans under the scheme.
