Karachi, March 17, 2026 – The State Bank of Pakistan (SBP) has increased the maximum loan size to Rs10 million under its Affordable Housing Scheme, aiming to boost home ownership and support first-time buyers across the country.
According to the SBP circular, the revised scheme, known as the Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance, now allows:
• Houses up to 10 Marla (2,720 sq. ft.)
• Flats up to 1,500 sq. ft.
• Customer/end-user fixed pricing reduced to 5%, replacing the previous 8% for ongoing loans
This enhancement is part of the government’s initiative to make housing more accessible, expanding loan limits to accommodate larger units while keeping financing affordable for citizens.
Previously, under the “Mera Ghar – Mera Ashiana” scheme launched in September 2025, first-time homeowners could access loans up to Rs3.5 million for houses of up to 5 Marla or flats of 1,360 sq. ft., with a loan tenor of up to 20 years and a 5–8% fixed interest rate depending on the tier.
The SBP has directed all Participating Financial Institutions (PFIs), including commercial banks, Islamic banks, microfinance banks, and the Housing Bank of Pakistan, to implement the updated features and ensure proper dissemination through branch networks and digital platforms.
The revised scheme also maintains key benefits such as no processing cost, no prepayment penalties, 90:10 loan-to-value ratio, and 10% risk coverage on first-loss basis, ensuring that borrowers continue to receive secure and cost-effective financing.
With this move, Pakistan aims to stimulate the real estate sector, provide relief to aspiring homeowners, and encourage inclusive economic growth in the housing market.