Government Expands ‘Apna Ghar’ Scheme, Makes Home Loans Easier Through Non-Bank Lenders
Islamabad: The federal government has approved a major expansion of the Prime Minister’s Apna Ghar Program, allowing Non-Banking Finance Companies (NBFCs) to participate in the housing finance scheme, making home loans more accessible for low- and middle-income families.
The decision was made following recommendations by the Securities and Exchange Commission of Pakistan (SECP), which has also issued the regulatory framework for the implementation of the new policy.
According to the SECP, non-bank housing finance and investment finance companies will now be allowed to provide housing loans of up to Rs100 million (Rs10 million), while microfinance companies will be authorized to offer loans of up to Rs5 million.
Under the scheme, eligible borrowers will be able to obtain housing finance at a fixed annual markup rate of 5% for the first 10 years, making it easier for low- and middle-income households to build, complete, or purchase a home.
The SECP said that NBFCs have an extensive presence in remote and underserved areas where traditional banking services are limited. As a result, the expanded program is expected to benefit people who previously had limited access to housing finance due to the absence of bank accounts or other banking requirements.
The new framework also allows NBFCs to provide housing loans in collaboration with banks and other financial institutions, a move aimed at speeding up and simplifying the loan approval process.
The Prime Minister’s Apna Ghar Program is designed to help low- and middle-income families obtain affordable financing to construct new homes, complete under-construction houses, or purchase ready-built homes. The initiative also aims to stimulate the housing sector, encourage investment in the construction industry, and create new employment opportunities.
With the latest changes, eligible applicants will be able to apply for housing loans ranging from Rs2.5 million to Rs10 million under easier financing terms through the government-backed scheme.
