By Our Correspondent
KARACHI: In a view to promote affordable housing finance, the PML-N government has introduced a subsidized mark-up scheme and risk-sharing scheme ‘Mera Ghar – Mera Ashiana’.
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In this regard, the State Bank of Pakistan (SBP) has notified the details, terms, and conditions for availing the benefits of the scheme in its notification.
The beneficiary of the scheme should be citizens holding CNICs and he/ she should purchase the home for the first time and not owning any housing unit in their name.
He/ She can purchase house/flat and plot, and make construction of house on already owned plot
The maximum limit for financing has been set at up to Rs 2 million with 5 percent markup for the first category and upto Rs. 3.5 million for the second category with 8 percent markup.
The beneficiaries can purchase a house of up to 5 marla and flat or apartment of up to 1360 sq. ft. area
The repayment of the financing amount could be done in 20 years, whereas the subsidy on mark-up will be restricted to the financing of 10 years.
The government exempted processing cost and prepayment penalty.
Customers could pay 10 percent downpayment of the house and the rest of the payment could be make through 90% amount of the financing. (90% loan & 10% equity). On the risk coverage side, 10% of the outstanding portfolio is covered under the scheme on first loss basis
The facility could be availed from all commercial, microfinance banks and House Building Finance Company (HBFC).
These institutions are advised to take necessary measures for proper dissemination of scheme through their branch network and other means. PFIs are further advised to gear up their systems for successful implementation of the scheme and to avoid any misuse of the scheme.
The mechanism for payment of markup and credit loss subsidy will be communicated in due course.
The government has allocated an amount of Rs. 5 billion for the affordable housing scheme in the budget for financial year 2025-26 that aims to give subsidy on markup amount of the housing financing.
The last government took initiatives to launch Mera Ghar Mera Pakistan Scheme which received an overwhelming response from the masses, as commercial banks received applications for over Rs. 500 billion financing against the scheme within two years. Later, the subsequent government discontinued this scheme to cut its subsidies despite the scheme attracted inflows from overseas Pakistan and generated economic activities in construction and allied sectors.
