SBP rolls out ‘Mera Ghar Mera Aashiyana’ scheme

The State Bank of Pakistan (SBP) has introduced the “Mera Ghar Mera Aashiyana” scheme to help people buy or build houses, flats, and plots.

According to SBP, the scheme is open to all Pakistani citizens holding valid CNICs who do not already own a housing unit. Eligible units include houses of up to five marla or apartments not exceeding 1360 square feet. The loan structure is divided into two tiers. Under Tier 1, borrowers can receive up to Rs2 million at a fixed 5 percent rate. Tier 2 covers loans above Rs2 million and up to Rs3.5 million at a fixed 8 percent rate. The maximum repayment period is 20 years, with the subsidy applying during the first 10 years.

Borrowers will contribute 10 percent equity, while banks will provide up to 90 percent financing. Loans will be priced at one-year KIBOR plus 3 percent. Importantly, there will be no processing fees or prepayment penalties. To reduce risks, the government will also provide 10 percent first-loss coverage on the outstanding portfolio. Financing will be offered through all commercial, Islamic, and microfinance banks, along with House Building Finance Company Limited (HBFCL). SBP has directed banks to spread awareness of the scheme and ensure strict monitoring to prevent misuse.

Officials say this program will ease the path to homeownership for thousands of families, while also supporting Pakistan’s construction and real estate sectors and boosting economic activity across the country.