Government Launches Affordable Housing Loan Schemes for Low-Income Citizens

Islamabad: Prime Minister Shehbaz Sharif has introduced the “Apna Ghar Program” and “Apni Chhat Apna Ghar Scheme” to provide affordable housing loans to low-income Pakistanis with subsidized markup rates.
Under these initiatives, loans of up to Rs. 10 million are being offered for the purchase or construction of houses and flats, with easy installment plans aimed at reducing the financial burden on the working class. The program also supports the purchase of apartments, plots, and the construction of homes on personally owned land.
The loans are available for housing units up to 10 marla or 1,500 square feet. The government has set the maximum financing limit at Rs. 10 million, with a fixed end-user markup rate of 5 percent. The repayment period can extend up to 20 years, while the government will provide a markup subsidy for the first 10 years.
Borrowers will pay a fixed 5 percent rate, whereas banks will calculate their rates based on one-year KIBOR plus 3 percent. Additionally, the scheme ensures that there are no processing fees or penalties for early repayment.

Several banks across Pakistan are participating in the Prime Minister’s housing initiative, offering home loans under these terms. For example, under plans by Bank Alfalah, a loan of Rs. 3 million comes with flexible repayment options. Borrowers opting for a 10-year term would pay a monthly installment of Rs. 19,799. For a 15-year term, the monthly installment is Rs. 23,724, while those choosing the maximum 20-year period would pay Rs. 31,820 per month.
This flexible structure allows borrowers to select repayment plans according to their financial capacity, while benefiting from government-backed subsidies and manageable monthly payments.