KARACHI, April 28, 2026 — The State Bank of Pakistan (SBP) has introduced new guidelines to accelerate housing loan approvals, directing banks and financial institutions to process applications within a maximum of 15 working days under the government-backed Apna Ghar housing initiative.
In a circular issued on Tuesday, the central bank outlined measures to facilitate the implementation of the “Apna Ghar – Ghar Ho Tu Apna” program, aimed at expanding access to affordable housing finance across Pakistan. The directive builds on earlier instructions issued through SBP’s 2025 and 2026 circulars related to housing and subsidized finance.
A key feature of the revised framework is the introduction of a cap on borrowers’ repayment capacity. The SBP stated that the total monthly debt burden ratio — including housing finance and other consumer loans — must not exceed 65 percent of a borrower’s net disposable income. This measure is designed to ensure responsible lending while reducing the risk of defaults.
The central bank has also simplified property assessment procedures. For properties valued up to Rs5 million, banks and the House Building Finance Company Limited can conduct evaluations using their internal resources. However, properties exceeding this value must be assessed by at least one valuator approved by the Pakistan Banks Association.
To further streamline the process, the SBP has mandated that banks and HBFCL complete the credit approval process within 15 working days from the date of receiving a complete application. This step is expected to significantly reduce delays and improve access to housing finance.
Additionally, the SBP has relaxed certain prudential regulations, including HF-3 and HF-7, specifically for this program to encourage broader participation.
The central bank emphasized strict compliance with the new guidelines, aiming to enhance transparency, efficiency, and accessibility in Pakistan’s housing finance sector while supporting the government’s broader housing agenda.