The federal government has decided to make the Prime Minister Apna Ghar Program more accessible by allowing Non-Banking Finance Companies (NBFCs) to participate in the housing finance scheme. The move aims to help more citizens achieve homeownership, particularly those who have limited access to traditional banking services.
The decision was made following recommendations by the Securities and Exchange Commission of Pakistan (SECP), which has also introduced the regulatory framework for the initiative.
Under the new framework, non-banking housing finance and investment finance companies will be allowed to provide housing loans of up to Rs. 10 million, while microfinance companies can offer loans of up to Rs. 5 million.
As part of the scheme, eligible borrowers will be able to obtain housing finance at a fixed annual markup of 5% for the first 10 years, making it easier for low- and middle-income families to build, complete, or purchase a home.
According to the SECP, NBFCs have a wider presence in remote and underserved areas where traditional banks have limited operations. This expansion will enable more people, including those without bank accounts or those unable to meet conventional banking requirements, to benefit from the housing finance program.
The new framework also allows NBFCs to provide housing loans in collaboration with banks and other financial institutions, a step expected to simplify and speed up the financing process.
The Prime Minister Apna Ghar Program is designed to provide affordable housing finance to low- and middle-income households, enabling them to construct a new home, complete an under-construction house, or purchase a ready-built property. In addition to supporting homeownership, the initiative is expected to boost the housing sector, encourage investment in construction, and create new employment opportunities.
With these latest changes, eligible applicants will now be able to obtain housing loans ranging from Rs. 2.5 million to Rs. 10 million under easier financing terms through the government’s housing scheme.
