The State Bank of Pakistan (SBP) has directed all banks participating in the Prime Minister’s Apna Ghar Scheme to process housing loan applications within 15 days and not charge any processing fee from applicants. The move is aimed at making affordable housing finance faster, simpler, and more accessible for eligible homebuyers.
The announcement was made by Ghulam Muhammad Abbasi, Executive Director of SBP’s Islamic Finance Group, during a media briefing on housing finance. According to the central bank, the new directives are intended to improve the loan application experience while reducing the financial burden on prospective homeowners.
To further streamline the process, SBP has introduced an online application portal that allows applicants to submit their housing finance requests digitally. The central bank also plans to launch a dedicated helpline to assist applicants with queries and resolve issues related to the housing finance programme.
Under the PM Apna Ghar Scheme, eligible individuals can obtain financing of up to PKR 10 million to purchase a completed house or apartment, buy a residential plot, or construct a house on land they already own. The scheme covers houses of up to 250 square yards and apartments measuring up to 1,500 square feet.
Borrowers can repay the loan over a maximum period of 20 years, with a fixed markup rate of 5% for the first 10 years. After the subsidized period, the remaining tenure will be subject to the prevailing market-based markup rate.
The scheme has also been designed to accommodate applicants from diverse income backgrounds. Salaried individuals can apply using salary slips, while self-employed individuals, freelancers, and those working in the informal sector may submit alternative proof of income, including bank statements, utility bills, and mobile top-up records, to support their applications.
In another borrower-friendly measure, the SBP has confirmed that applicants can repay their housing loan before the end of the financing period without any prepayment penalty, offering greater financial flexibility.
The latest directives are expected to speed up loan approvals, reduce upfront costs for applicants, and encourage more families to benefit from affordable housing finance under the PM Apna Ghar Scheme while supporting growth in Pakistan’s housing and construction sectors.
