In a major relief for aspiring homeowners, the State Bank of Pakistan (SBP) has announced that banks participating in the PM Apna Ghar Scheme will no longer charge a processing fee on housing loan applications. The move is aimed at making affordable home financing more accessible by reducing the upfront cost for eligible applicants.
The announcement was made during an SBP briefing on the government’s subsidized housing finance programme. According to officials, eliminating the processing fee is part of broader efforts to encourage homeownership and improve access to financing for first-time buyers across Pakistan.
Under the PM Apna Ghar Scheme, individuals who do not already own a house can apply for financing to purchase or construct a home. The scheme is open to applicants from various professional backgrounds, including salaried employees, business owners with documented income, and overseas Pakistanis. Joint applications with family members are also permitted to strengthen repayment capacity.
The programme offers housing finance of up to PKR 10 million, with a subsidized markup rate of 5% for the first 10 years. For borrowers choosing a repayment period of up to 20 years, the remaining tenure will be subject to the prevailing market-based markup rate. Financing is available through commercial banks, Islamic banks, microfinance banks, and the House Building Finance Company Limited (HBFCL).
The PM Apna Ghar Scheme has continued to gain momentum since its launch. According to SBP, the programme has received more than 107,000 applications, with thousands already approved and billions of rupees disbursed to successful applicants. The government has also allocated significant funding to support the markup subsidy and plans to expand the number of approved housing loans during the current fiscal year.
By removing processing charges, the government hopes to reduce financial barriers for prospective homeowners while supporting growth in Pakistan’s housing and construction sectors. The initiative is also expected to contribute to addressing the country’s housing shortage by making affordable home financing available to a larger segment of the population.
For individuals planning to purchase or build their first home, the latest update makes the PM Apna Ghar Scheme an even more attractive option, offering easier access to subsidized housing finance with lower upfront costs.
