Apna Ghar Scheme offers loans up to Rs10 million for home purchase

ISLAMABAD: Prime Minister Shahbaz Sharif launched the Prime Minister Apna Ghar Program. A loan of up to Rs 10 million will be given for 20 years for house purchase. An application for taking a loan will have to be submitted online. Final approval will be given in a month.

A 10 marla plot or a 10 marla built house can be purchased with the loan amount. 90 percent financing will be done under the government scheme and 10 percent individually. There will be no fee or prepayment requirement to get a loan.

A loan will be available from an Islamic and commercial bank, microfinance or house building finance company. A loan of up to Rs 25 lakh, 50 lakh, 75 lakh or Rs 10 million can be obtained.

There will be a fixed mark-up of 5 percent in the first 10 years, and a normal mark-up for the next 10 years. Those taking a loan of 25 lakh will have to pay a monthly installment of Rs 16,499. People taking a loan of Rs 5 million will pay a monthly installment of Rs 32,997.

Under the scheme, the monthly installment of 7.5 million borrowers will be Rs 49,497. A monthly installment of Rs 65,996 will have to be paid on a loan of Rs 10 million. It has been made mandatory for CNIC holders to not be in debt in advance to take a loan. State Bank and Pakistan Housing Authority Foundation will monitor the project.

Addressing the inauguration ceremony, Prime Minister Shehbaz Sharif said that providing a roof is a sacred duty. A large number of 240 million Pakistanis are deprived of their roof. This scheme is not for any particular area but for the entire country. A target of five lakh houses has been set in the next four years. The wheel of the economy runs through the construction sector.

Shehbaz Sharif said that awards will be given to banks that play a leading role in the scheme. At the inauguration ceremony of the Prime Minister Apna Ghar Scheme, Prime Minister Shehbaz Sharif distributed checks among the successful candidates.