Housing Loan Scheme: Govt Launches “Mera Ghar – Mera Ashiana” with 20-Year Affordable Housing Loans
Introduction
The Government of Pakistan has introduced a new Housing Loan Scheme called “Mera Ghar – Mera Ashiana.” This program is designed to make homeownership easier for families by providing long-term subsidized loans with repayment periods of up to 20 years. Targeted at individuals without existing property ownership, the initiative offers a secure and affordable path to owning a house or flat.
Key Features & Eligibility
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Open to all valid CNIC holders who do not own a house or plot.
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Financing options under the Housing Loan Scheme include:
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Buying a house or flat
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Constructing a house on an owned plot
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Purchasing a plot and then building on it
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Property size eligibility:
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Houses up to 5 marla
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Apartments up to 1,360 sq. ft.
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Loan Structure & Terms
| Tier | Loan Amount | Fixed Interest Rate | Notes |
|---|---|---|---|
| Tier 1 | Up to PKR 2 million | 5% | Affordable end-user rate |
| Tier 2 | Above PKR 2 million – PKR 3.5 million | 8% | Fixed end-user rate |
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Maximum tenor: 20 years
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Markup subsidy: Available for the first 10 years
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Equity contribution: 10% from borrower, up to 90% covered by financing
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Pricing model: 1-year KIBOR + 3% margin
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No processing fees or prepayment penalties
This Housing Loan Scheme offers one of the most attractive government-backed financing structures for aspiring homeowners.
Risk Mitigation & Oversight
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The government will cover 10% first-loss on loan portfolios to reduce risk for banks.
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The State Bank of Pakistan (SBP) has directed participating banks to actively promote the program and prevent misuse.
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Additional guidelines on subsidy disbursement and risk coverage will be issued to financial institutions.
Participating Institutions
The Housing Loan Scheme is available through:
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Commercial banks
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Islamic banks
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Microfinance banks
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House Building Finance Company Limited (HBFCL)
With multiple banking channels, accessibility across Pakistan is ensured.
Implications & Outlook
The launch of this Housing Loan Scheme represents a game-changing step in Pakistan’s real estate and housing sector. With fixed low rates, long repayment terms, and government-backed risk sharing, the initiative makes homeownership a reality for low- and middle-income families.
If executed effectively, Mera Ghar – Mera Ashiana will not only ease the housing crisis but also drive growth in the real estate sector nationwide.
Shahnawaz Yaqub Bhatti
Investment Consultant and CEO at Imlaak
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