SBP launches ‘Mera Ghar Mera Aashiyana’ housing scheme

ISLAMABAD: The State Bank of Pakistan (SBP) has introduced the “Mera Ghar Mera Aashiyana” plan to assist individuals in purchasing and constructing homes, apartments, and plots.

Under the plan, first-time homebuyers would be eligible for loans ranging from Rs 2 million to Rs 3.5 million.

According to the central bank, the loan would be for up to 20 years, with a subsidy available for the first ten years.

All conventional and Islamic banks, microfinance organizations, and the House Building Finance Corporation (HBFC) will participate in the funding.

Banks will price the loans at KIBOR + 3%. Borrowers would be able to obtain loans of up to Rs 2 million at a rate of 5% and up to Rs 3.5 million at a rate of 8%. The approach also eliminates loan processing costs.

It should be remembered that earlier in July, the Cabinet’s Economic Coordination Committee (ECC) authorized a mark-up subsidy program for 50,000 housing units, totaling Rs72 billion for the current fiscal year.

The plan is intended to help first-time homeowners who do not already own a home by providing them with access to housing finance at reduced interest rates.

Housing loans are available to eligible persons with valid CNICs for a maximum of 20 years under the program.

For the first ten years, the subsidy gives a fixed interest rate of 5% for loans up to Rs2 million and 8% for loans between Rs2 million and Rs3.5 million. Market rates will be in effect following the initial term.