SBP unveils Mera Ghar – Mera Ashiana scheme

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MG News | September 24, 2025 at 04:28 PM GMT+05:00

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September 24, 2025 (MLN): The State Bank of Pakistan (SBP) has introduced the "Mera Ghar – Mera Ashiana" Markup Subsidy and Risk Sharing Scheme to promote affordable housing finance across the country.

The initiative aims to facilitate first-time homeowners through subsidized loans and risk coverage for participating banks and financial institutions.

According to the SBP’s SME, Housing and Sustainable Finance Department Circular No. 03 of 2025, the scheme provides concessional financing for the purchase, construction, and development of housing units.

It covers individuals who do not own any house in their name and hold valid Pakistani CNICs.

Key Features of the Scheme

ParametersFeatures
EligibilityFirst-time homeowners, Pakistani citizens with valid CNICs, no prior house ownership
Scope- Purchase of house/flat
- Construction on owned plot
- Purchase of plot + construction
Size of UnitHouse up to 5 Marla or flat/apartment up to 1360 sq. ft.
PFIsAll commercial banks, Islamic banks, MFBs, and HBFCL
Maximum Loan SizeTier 1: Up to PKR 2.0m
Tier 2: Above PKR 2.0m and up to PKR 3.5m
Loan TenorUp to 20 years (markup subsidy for 10 years)
Bank PricingOne-Year KIBOR + 3%
End-User PricingTier 1: 5% fixed
Tier 2: 8% fixed
Bank ChargesNo processing cost, no prepayment penalty
LTV Ratio90:10 (90% loan, 10% equity)
Risk Coverage10% of outstanding portfolio covered on first-loss basis

The SBP has directed all banks, Islamic banks, microfinance banks (MFBs), and House Building Finance Company Limited (HBFCL) to ensure proper dissemination of the scheme across their branch networks and digital platforms.

The central bank further instructed participating financial institutions (PFIs) to prepare their systems for smooth implementation while guarding against potential misuse of the facility.

The mechanism for markup subsidy and credit loss coverage payments will be shared later.

This scheme is expected to significantly expand access to affordable housing finance in Pakistan, a long-standing demand of the middle- and lower-income segments.

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