Karachi( The COW News Digital)The State Bank of Pakistan (SBP) has officially relaunched its flagship housing finance initiative, “Mera Ghar Mera Ashiana”, aimed at making homeownership more accessible for low- and middle-income citizens. According to the central bank, the scheme offers financing for purchasing a house, flat, or plot, as well as for the construction of a home, with loan amounts ranging from PKR 2 million to PKR 3.5 million.
Eligibility is limited to individuals purchasing their first home, ensuring that the program supports those who are currently without a property. Under the scheme, applicants can buy a house or flat up to a maximum size of 5 marla or 1,360 square feet.
The loan tenure is set at 20 years, giving borrowers a longer repayment period. Importantly, the government will provide a subsidy on the markup for the first 10 years. According to SBP’s announcement, financing of up to PKR 2 million will carry a 5% markup, while loans up to PKR 3.5 million will be available at an 8% markup rate.
All conventional and Islamic banks, as well as microfinance banks and the House Building Finance Corporation (HBFC), have been directed to participate in the program. To further facilitate borrowers, SBP has clarified that no processing fee will be charged for loan applications.
The scheme is part of the government’s broader efforts to address Pakistan’s housing shortage and to encourage investment in the construction sector, which is a key driver of economic growth. Experts say that access to affordable financing could stimulate housing demand, create jobs, and boost allied industries like cement, steel, and construction services.
In a related development, the Khyber Pakhtunkhwa government has announced an interest-free loan program for its government employees, further signaling a policy focus on expanding housing opportunities.
Economic analysts have welcomed the revival of “Mera Ghar Mera Ashiana,” noting that the previous versions of the scheme saw significant uptake but were temporarily suspended due to fiscal constraints. With the new terms, they believe it will provide a much-needed boost to middle-class families seeking long-term housing solutions.
The central bank is expected to launch an online portal soon to streamline the application process and increase transparency in loan approvals.
