Owning a home is a dream for many families in Pakistan, especially those currently living in rented houses. To make this dream more achievable, the Government of Pakistan in collaboration with the State Bank of Pakistan (SBP) has launched the Mera Ghar Mera Ashiana Markup Subsidy and Risk Sharing Scheme. This program provides affordable housing finance with government-backed subsidies and risk coverage, helping first-time home buyers secure a place of their own.
Why this scheme matters
Housing has become increasingly expensive in recent years, and traditional bank loans often carry high interest rates — sometimes as high as 20–30%. The Mera Ghar Mera Ashiana scheme addresses this problem by offering loans at much lower rates, long repayment tenures, and government-provided risk sharing for banks.
This initiative is part of Pakistan’s broader effort to expand access to affordable housing nationwide.
Who can apply? (Eligibility Criteria)
- First-time home owners only – You must not already own a house or flat in your name.
- Pakistani citizen – Valid CNIC is required.
- Open for both men and women; no gender restrictions.
- Applicants must apply as individuals (not developers or investors).
What can you finance? (Scope of the scheme)
The scheme covers multiple housing needs:
- Purchase of a house (up to 5 marla).
- Purchase of a flat (up to 1,360 sq. ft.).
- Construction of a house on an already-owned plot.
- Purchase of a plot and construction of a house on it.
This flexibility allows both urban and rural applicants to benefit, whether they want to buy ready-made housing or build gradually.
Loan size and tiers
The scheme offers two main tiers of financing:
- Tier 1: Up to PKR 2 million (20 lakh).
- Tier 2: Above PKR 2 million and up to PKR 3.5 million (35 lakh).
Loan tenure (Repayment period)
- Loans can be taken for up to 20 years.
- This long duration ensures smaller monthly installments, making repayments easier for salaried and low-income households.
Markup (Interest) rates
The biggest advantage of the scheme is its reduced markup rates compared to commercial loans:
- Tier 1: 5% fixed for the borrower.
- Tier 2: 8% fixed for the borrower.
👉 For the first 10 years, the government provides subsidy support, significantly reducing the financial burden on households. After that, normal rates apply as per SBP rules.
Other key features
- No processing charges – Banks are not allowed to charge fees for applications.
- No prepayment penalty – If you repay earlier, there are no extra costs.
- High financing ratio – Up to 90% loan from the bank; only 10% equity required from the applicant.
- Risk coverage – The government provides 10% coverage on outstanding loans to encourage banks to lend confidently.
Participating banks
Almost all major commercial and Islamic banks, as well as microfinance banks and the House Building Finance Corporation (HBFC), are part of this program. This means you can approach your existing bank branch to apply directly.
How to apply for mera ghar mera ashiana
- Check eligibility – Ensure you are a first-time home buyer with a valid CNIC.
- Choose a bank – Visit a participating bank’s branch or housing finance desk.
- Prepare documents – Usually includes CNIC, proof of income/employment, bank statements, property documents, and photographs.
- Submit application – The bank will review, assess property documents, and evaluate repayment capacity.
- Approval & disbursement – Once approved, funds are released either as a lump sum (for ready purchases) or in stages (for construction).
Why this scheme is important for you
For families who have been renting for years, this is one of the most affordable and realistic ways to own a home. With lower markup rates, long repayment periods, and minimal upfront requirements, it provides a practical path to home ownership for low- and middle-income groups.
Final thoughts
The Mera Ghar Mera Ashiana scheme is a major step towards solving Pakistan’s housing shortage and supporting families who wish to move from rented accommodation to their own homes. With government backing, lower interest rates, and accessible terms, this initiative can truly turn the dream of home ownership into a reality for thousands of Pakistanis.
