In a bid to make home ownership more accessible, the Government of Pakistan has launched a new Markup Subsidy and Risk Sharing Scheme titled “Mera Ghar Mera Ashiana.”
The initiative aims to support first-time homeowners through subsidized financing and risk coverage, the central bank said on Wednesday.
Key Features of the Scheme
- Eligibility: Available to Pakistani citizens holding CNICs who do not already own a housing unit.
- Scope: Financing will cover purchase of a house or flat, construction on an owned plot, or purchase of a plot with construction.
- Unit Size: Up to 5 marla houses or flats/apartments of up to 1,360 sq. ft.
- Loan Size: Tier 1 (T1): Up to PKR 2 million, Tier 2 (T2): Above PKR 2 million and up to PKR 3.5 million
- Tenor: Up to 20 years, with subsidy support for the first 10 years.
- Pricing: Banks will charge KIBOR + 3%, while end-user pricing is fixed at 5% for T1 and 8% for T2.
- Charges: No processing costs and no prepayment penalties.
- Loan-to-Value Ratio: 90:10 (90% loan, 10% equity).
- Risk Coverage: Government will cover 10% of the outstanding portfolio under the scheme on a first-loss basis.
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The scheme will be offered through all commercial banks, Islamic banks, microfinance banks (MFBs), and House Building Finance Company Limited (HBFCL).
Participating financial institutions (PFIs) have been instructed by the State Bank of Pakistan (SBP) to actively disseminate information about the scheme through their branch networks and ensure smooth implementation. T
They have also been cautioned to prevent any misuse of the facility.
