Karachi: The State Bank of Pakistan (SBP) has announced key revisions to the government-backed Mera Ghar Mera Ashiana scheme, increasing both the maximum loan limit and the eligible housing unit size to improve access to affordable housing finance.
Under the updated framework, the maximum loan size has been raised from Rs3.5 million to Rs10 million, marking a 180% increase. The eligible housing unit size has also been expanded from 5 Marla to 10 Marla, while the permissible flat size has been increased to 1,500 square feet.
The scheme, introduced to support low- and middle-income households, facilitates financing for the purchase and construction of houses, flats, and plots. Borrowers can avail loans for up to 20 years, with the government providing a markup subsidy for the first 10 years. End-users will pay a fixed markup rate of 5%, while banks will be compensated based on KIBOR plus 3%.
Financing will be offered on a 90:10 loan-to-value ratio, requiring borrowers to contribute 10% equity. The government will also provide partial risk coverage of 10% of the outstanding portfolio on a first-loss basis.
The SBP has directed all participating financial institutions, including commercial banks, Islamic banks, microfinance banks, and the House Building Finance Company, to ensure wide dissemination of the revised features and smooth implementation of the scheme.
Other terms and conditions of the scheme remain unchanged.
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