Karachi, September 24, 2025 – The State Bank of Pakistan (SBP) has announced a major initiative aimed at promoting affordable housing finance in the country. The scheme, introduced under the government’s “Mera Ghar – Mera Ashiana” program, seeks to make home ownership more accessible for citizens, especially first-time buyers.
According to the SBP, the scheme offers a markup subsidy as well as risk-sharing features to encourage banks and other financial institutions to extend affordable loans for housing projects. Eligible Pakistanis who do not already own a property can benefit from subsidized loans for purchasing, constructing, or financing residential units.
Below are the key features of the scheme:
| Parameters | Features |
| Eligibility | First-time homeowners with valid CNICs who do not own any housing unit |
| Scope | Purchase of house/flat, construction on owned plot, or purchase of plot with construction |
| Size of Unit | Up to 5 Marla house or flat/apartment up to 1360 sq. ft. |
| Participating Institutions | All commercial banks, Islamic banks, microfinance banks (MFBs), and HBFCL |
| Loan Size | Tier 1: Up to PKR 2m; Tier 2: Above PKR 2m and up to PKR 3.5m |
| Tenor | Up to 20 years, with subsidy available for 10 years |
| Pricing | KIBOR + 3%; fixed customer pricing Tier 1: 5%, Tier 2: 8% |
| Charges | No processing fees or prepayment penalties |
| Loan to Value Ratio | 90:10 (loan to equity) |
| Risk Coverage | 10% of outstanding portfolio covered on first loss basis |
The SBP has directed all participating financial institutions to widely disseminate details through their networks. Officials stressed that this housing finance scheme will not only support individuals but also strengthen the real estate and construction sectors, driving long-term economic growth.