Mera Ghar Mera Ashiana is a government-backed housing finance initiative in Pakistan designed to help low- and middle-income families own a home through affordable, long-term financing. The scheme operates under the State Bank of Pakistan’s affordable housing framework, where the government provides markup subsidy for an initial period, making monthly payments easier for first-time homeowners.
What Is Mera Ghar Mera Ashiana Scheme?
Mera Ghar Mera Ashiana (MGMA) allows eligible Pakistani citizens to buy, build, or construct a residential house or apartment with subsidized financing. The government supports borrowers by covering a portion of the markup for the first ten years, while banks provide financing for up to twenty years, reducing the overall financial burden.
Meezan Bank’s Islamic Housing Finance
Meezan Bank offers this scheme under its Easy Home – Mera Ghar Mera Ashiana product, which is fully Shariah-compliant. Instead of conventional interest-based lending, Meezan Bank uses the Diminishing Musharakah model. In this structure, the bank and customer jointly own the property, and the customer gradually purchases the bank’s share over time while paying rent on the remaining portion. This ensures compliance with Islamic banking principles.
Key Features and Benefits
The scheme is completely Shariah-compliant and free from interest-based transactions. The government provides markup subsidy for the first ten years, significantly reducing monthly installments. Financing tenure can extend up to twenty years, making repayments affordable. Applicants are required to pay only ten percent of the property value as their initial contribution, while the remaining ninety percent is financed by the bank. The scheme is designed to be transparent, with minimal or no processing charges in most cases.
Financing Tiers and Rates
Under the Mera Ghar Mera Ashiana scheme with Meezan Bank, financing is generally divided into two tiers. Tier 1 allows financing up to PKR 2 million with a subsidized fixed rate of around five percent for the first ten years. Tier 2 covers financing above PKR 2 million up to PKR 3.5 million with a subsidized fixed rate of around eight percent for the first ten years. After the subsidy period, the profit rate becomes variable and is linked to prevailing market benchmarks as per Islamic banking rules.
Property Size and Limits
The scheme is intended for affordable housing. Applicants can finance a house up to approximately five marla or a flat or apartment up to around 1,360 square feet. There is no strict cap on the total property price, as long as the financing amount remains within the approved tier limits.
Eligibility Criteria
To apply for this scheme through Meezan Bank, the applicant must be a Pakistani citizen with a valid CNIC. The scheme is specifically for first-time homebuyers, meaning the applicant must not already own a residential property. Both salaried and self-employed individuals can apply, provided they have a stable and verifiable income. Age limits generally range from 20 to 65 years, ensuring the financing is completed before retirement. Standard bank credit checks and repayment capacity assessments also apply.
What You Can Finance
The scheme can be used for purchasing a ready-built house, flat, or apartment. It also allows financing for construction of a house on already owned land. In some cases, applicants can finance the purchase of land along with construction, subject to bank approval and scheme rules.
Application Process
Applicants need to visit their nearest Meezan Bank branch and request the Easy Home – Mera Ghar Mera Ashiana application form. After submitting the required documents, including CNIC, income proof, and property papers, the bank evaluates eligibility and property valuation. Once approved, the financing is disbursed and the customer begins making monthly payments according to the agreed schedule.
Why This Scheme Is Important
Mera Ghar Mera Ashiana makes homeownership more accessible by reducing upfront costs and monthly payments. Government subsidy support lowers financial pressure during the early years. The long repayment period helps families plan their finances comfortably. For customers who prefer Islamic banking, Meezan Bank provides a reliable and Shariah-compliant solution without interest.
Conclusion
The Mera Ghar Mera Ashiana Scheme with Meezan Bank is a practical and trustworthy option for Pakistanis who wish to own a home through affordable and Islamic financing. With government-backed subsidy, low initial contribution, and flexible repayment tenure, this scheme plays a vital role in turning the dream of homeownership into reality for thousands of families across Pakistan.
