Update (April 29, 2021): According to a recent article by a renowned news publication of the country, an official statement was released by the State Bank of Pakistan on April 27, 2021. It significantly highlighted the success of the ‘Mera Pakistan Mera Ghar’ Scheme, explaining how it has resulted in an unprecedented growth of the housing and construction sector in Pakistan.
“This represents a growth of Rs54 billion or 36% in (just) three quarters of FY21 compared to a stagnant position in earlier quarters. Such level of growth in housing and construction finance within a short period of time has never been witnessed in Pakistan’s history,” SBP stated.
“The State Bank has been actively engaged with commercial banks to ensure that a vast majority of the public benefits from the ‘Mera Pakistan Mera Ghar’ housing finance scheme,” the statement further added.
The government of Pakistan under the leadership of Prime Minister Imran Khan launched the ‘Mera Pakistan Mera Ghar’ scheme in the latter half of 2020. It is a markup subsidy program run by the State Bank of Pakistan. The authorities have set aside a budget of PKR 36 billion to offer this home loan facility with subsidized markup rates.
The concept behind introducing the ‘Mera Pakistan Mera Ghar’ scheme is to facilitate the masses with low-cost home financing solutions. The State Bank of Pakistan has taken onboard almost all major commercial banks in the country to expand the reach of the government’s markup subsidy program nationwide.
So, if you want to learn more about this subsidized home loan program before applying for it, then you have made it to the right post. Here we have put together a list of all the important FAQs about the ‘Mera Pakistan Mera Ghar’ scheme.
Now, without further delay, let’s get the ball rolling!
Important FAQs About ‘Mera Pakistan Mera Ghar Scheme’
The FAQs we are going to list here are based on the information released in the form of an official circular by the State Bank of Pakistan on March 25, 2021.
Am I Eligible to Apply for ‘Mera Pakistan Mera Ghar’?
Yes, if you are a citizen of Pakistan with a valid CNIC, then you are eligible to apply for the scheme. You should be a first-time homebuyer. Also, you can apply for the subsidized home loan program only once.
Can I Purchase Land/Plot Under This Home Loan Facility?
Since the government’s markup subsidy program also aims to benefit the construction industry, you can avail of the loan facility to purchase a piece of land only if you have plans to construct a house on it instead of using it as an investment property.
How Much Loan Amount Can I Borrow Using the Scheme?
According to the recent amendments made by the State Bank of Pakistan in the terms of the housing scheme, you can borrow up to 10 million using this home loan facility.
What are the Credit Tiers for the ‘Mera Pakistan Mera Ghar’ scheme?
To make the terms of the program easily comprehensible for the general public, the government of Pakistan has divided the markup subsidy program into four tiers. The distribution starts from Tier 0 to Tier 3.
It is important to mention here that Tier 1 of the scheme has been designated for the low-cost housing projects approved by the Naya Pakistan Housing & Development Authority (NAPHDA).
What is the Size of the Property Unit and Amount of Loan Designated for Each Tier?
The table below gives you all the key details in this regard. Take a look!
|Credit Tier||Housing Unit Size Limit||Maximum Loan Amount|
|Tier 0||House up to 125 sq yd / Flat up to 1,250 sq ft||Up to PKR 2 million|
|Tier 1 (for NAPHDA)||House up to 125 sq yd / Flat up to 850 sq ft||Up to PKR 2.7 million|
|Tier 2||House up to 125 sq yd / Flat up to 1,250 sq ft||Up to PKR 6 million|
|Tier 3||House up to 250 sq yd / Flat up to 2,000 sq ft||Up to PKR 10 million|
What is the Percentage of Markup for Each Loan Tier?
The percentage of markup for this loan facility varies from tier to tier. Have a look at the table below for more information.
|Credit Tier||Markup Percentage|
|Tier 0||5% for the first 5 Years and 7% for the next 5 years|
|Tier 1 (for NAPHDA)||3% for the first 5 Years and 5% for the next 5 years|
|Tier 2||5% for the first 5 Years and 7% for the next 5 years|
|Tier 3||7% for the first 5 Years and 9% for the next 5 years|
Are There Any Upper Limits for the Market Value of Properties Bought Using the Government Loan Scheme?
As per the latest updates on the government’s markup subsidy program, the government has now removed the upper limits for the market value of financed housing units under the ‘Mera Pakistan Mera Ghar’ scheme.
This means there is no cap in terms of property value for loan applicants of credit tiers 0, 2, and 3. However, credit tier 1, which is for the NAPHDA-approved project, still has a maximum limit of PKR 3.5 million for the market price of the financed unit.
What is the Minimum Loan Tenure Allowed in the Government’s Markup Subsidy Scheme?
In the light of the recent amendments made by SBP, you can avail of the loan facility under the ‘Mera Pakistan Mera Ghar’ scheme for a minimum of five years. Previously, the limit was only set to 10 years. Plus, you can even extend the loan terms to 20 years, depending on your requirement.
What Should I Provide As Security Against the Loan I Am Borrowing?
As per the official circular of SBP, the same housing unit that has been financed will also be mortgaged in favour of the financial institution, which is lending you the loan amount. It is a convenient solution to fulfil the loan security requirement of the concerned bank.
Are There Any Specific Banks from Where I Can Apply for ‘Mera Pakistan Mera Ghar’?
As discussed, the State Bank of Pakistan (SBP) has networked with all major commercial, Islamic, and microfinance banking institutions across the country for this government-run loan scheme. This means you can easily visit your nearest bank branch if you want to apply for ‘Mera Pakistan Mera Ghar’, also known as ‘Apna Ghar Sasta Qarz’.
How Can I Get Assisted or Register a Complaint As a Loan Borrower of the Government Scheme?
Special Service Desks have been set up physically in the concerned bank branches as well as on the online portal of SBP. These service desks have been designed to help loan borrowers out with their queries and complaints. If you want to sign up for the SBP’s online service desk for the loan markup scheme, read this blog for the complete procedure
Complete List of FAQs About ‘Apna Ghar Sasta Qarz’ Scheme By SBP
For more information and details that you as an applicant should know about this government loan scheme, here is a link to the complete list of FAQs about ‘Mera Pakistan Mera Ghar’.
This brings us to the end of our detailed post on all the important FAQs about the government’s newly-introduced subsidy markup program. If you have any questions or feedback related to this blog, feel free to reach out to us at firstname.lastname@example.org.
On a side note, you may also like reading about all the latest updates on the Naya Pakistan Housing Program (NPHP), phase-1 of which has already been launched. Over 1500 housing units have been handed over to the individuals belonging to the labour class who have applied for the scheme.
For more informative pieces related to infrastructure and property developments happening all over the country, keep reading Zameen Blog—your source for the best real estate blogs in Pakistan. Stay updated with all our latest blog posts by subscribing to our email newsletter.