The government on Wednesday introduced a new housing finance initiative, Mera Ghar – Mera Ashiana, aimed at improving access to affordable housing for citizens across Pakistan.
According to details available on the State Bank of Pakistan’s (SBP) website, the scheme provides a markup subsidy and risk-sharing mechanism to encourage housing finance. It is open to all citizens with valid CNICs who do not already own a house.
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Borrowers can apply for financing to purchase a house or apartment, construct a home on an existing plot, or buy a plot and build on it. The program covers houses of up to five marla and apartments of up to 1,360 square feet. Financing will be available through commercial banks, Islamic banks, microfinance banks, and the House Building Finance Company (HBFCL).
The loan structure is divided into two tiers:
- Tier 1: Loans up to Rs2 million at a fixed 5% end-user rate.
- Tier 2: Loans between Rs2 million and Rs3.5 million at a fixed 8% rate.
Loans may extend up to 20 years, with markup subsidies applied for the first 10 years. Borrowers will provide 10% equity, while banks finance up to 90%.
To reduce risks, the government will cover 10% of first losses on outstanding portfolios. Banks have been directed to actively promote the scheme and prepare their systems for smooth implementation.
