Mera Ghar – Mera Ashiana: Loan Criteria and Info

The State Bank of Pakistan (SBP) has introduced a subsidized housing finance scheme called “Mera Ghar – Mera Ashiana.” The scheme aims to help Pakistani citizens buy or build affordable homes. Applicants must hold a valid CNIC and not already own a housing unit in their name.

Under the scheme, applicants can buy houses or flats, build homes on owned plots, or purchase plots and construct houses. The scheme covers houses up to 5 Marla and flats up to 1360 square feet. Loans are available through commercial banks, Islamic banks, microfinance banks, and the House Building Finance Company.

The scheme offers two financing tiers. Tier 1 (T1) provides loans up to Rs. 2 million, while Tier 2 (T2) covers loans between Rs. 2 million and Rs. 3.5 million. Loan tenure lasts 20 years, with a subsidy for the first 10 years. Fixed customer pricing is 5% for Tier 1 and 8% for Tier 2 loans.

Banks will price loans at One-Year KIBOR plus 3%. Importantly, there are no processing charges or prepayment penalties under this program. The Loan-to-Value ratio is 90:10, meaning 90% financing and 10% equity contribution by the borrower.

Additionally, a 10% risk coverage on the outstanding loan portfolio is provided on a first-loss basis. This subsidy scheme is designed to boost homeownership and support Pakistan’s housing sector growth.