Citizens Can Now Get Up to Rs 3.5 Million Loan for Home Ownership

Islamabad – A major housing initiative has been launched to help citizens build or buy their first home. Under the “Markup Subsidy and Risk Sharing Scheme”, the Mera Ghar Mera Aashiana programme will provide loans ranging from Rs 2 million to Rs 3.5 million.

According to a circular issued by the State Bank of Pakistan, the scheme will allow citizens to obtain housing finance for up to 20 years on easy terms. All commercial banks, Islamic banks, and other financial institutions have been directed to promote this facility.

Eligibility

• Applicants must be Pakistani citizens with a valid CNIC.
• Only first-time home buyers are eligible.
• No existing home should be registered in the applicant’s name.

Purpose of Loan

• Buying a new house or flat
• Constructing a house on an existing plot
• Purchasing a plot and building a house on it

Loan Size & Property Limit

• Maximum: 5-marla house or a flat/apartment up to 1,360 sq. ft.
• Tier 1: Loans up to Rs 2 million
• Tier 2: Loans above Rs 2 million and up to Rs 3.5 million

Terms & Conditions

• Loan tenure: up to 20 years
• Subsidy: available for the first 10 years
• Pricing: 1-year KIBOR + 3%
• No processing fee or prepayment penalty
• Loan-to-value ratio: 90:10 (90% loan, 10% equity)

The scheme also includes risk coverage, where 10% of the loan portfolio will be secured on a first-loss basis.