Govt launches subsidized housing loans under Apna Ghar Scheme

ISLAMABAD: The Prime Minister’s Apna Ghar Program and the “Apni Chhat Apna Ghar” schemes provide affordable housing loans with mark-up subsidy for low-income Pakistanis.

Under these schemes, loans of up to Rs. 10 million are available for purchase or construction of a house/flat, in easy installments, with the aim of reducing the financial burden on the working class.

The program provides financial assistance to citizens for the purchase of houses, apartments and plots, as well as for construction of houses on land they own.

Loans are available for housing units up to 10 marla or 1,500 square feet of flats, the federal government has set a maximum loan limit of Rs. 10 million and the fixed interest rate of the consumer is 5 percent.

The repayment period of these loans can extend up to 20 years, with the government providing mark-up subsidy for the first 10 years. The borrowers will pay a fixed interest rate of 5 percent, while the banks’ rate is based on one-year KIBOR plus 3 percent. will be counted.

Furthermore, the scheme ensures that there are no processing fees or penalties for early repayment.

Several banks across Pakistan offer house loans of up to Rs 10 million under the PM Apna Ghar program.

Here are the details of a Rs 3 million loan under Bank Alfalah’s plans, including the monthly installment amount for repayment terms of up to 20 years.

Under Bank Alfalah’s housing loan scheme, a Rs 3 million loan comes with flexible repayment options. The monthly installment for a 10-year tenure is set at Rs 19,799. Borrowers opting for a 15-year repayment tenure will have to pay Rs 23,724 per month, while those opting for a maximum tenure of 20 years will have a monthly installment of Rs 31,820.

This format allows borrowers to choose a plan that suits their financial capacity, which is backed by the government’s mark-up subsidy for the initial 10 years and a monthly installment for the end-users. Provides manageable monthly payments while benefiting from a fixed 5% rate.