The government of Pakistan has approved a major expansion of the Prime Minister’s Apna Ghar Program by allowing non-banking financial institutions to offer subsidized housing loans. The move is expected to make home financing easier for more people across the country.
Under the updated policy, eligible non-banking finance companies (NBFCs) can now provide home loans of up to 10 million rupees. This step is aimed at helping low- and middle-income families who face difficulties in securing loans from traditional banks.
Officials said the Federal Government has officially added NBFCs as Participating Financial Institutions under the Apna Ghar Program. This means more financial channels will now be available for people seeking affordable housing loans.
Under the scheme, house finance and investment finance companies can offer loans up to 10 million rupees. At the same time, microfinance companies can provide loans of up to Rs.5 million.
The Securities and Exchange Commission of Pakistan has approved the decision and said it would improve access to housing finance. The regulator believes this step will also strengthen Pakistan’s non-bank financial sector.
Officials said many people struggle to get loans from banks due to strict conditions. By allowing NBFCs to participate, the government hopes to increase financial inclusion and support more families.
Experts say NBFCs usually have wider outreach and flexible lending models. This makes it easier for them to serve people with limited banking options.
The Prime Minister’s Apna Ghar Program is designed to promote affordable housing in Pakistan. It offers mark-up subsidies and risk coverage to make loans more manageable for first-time home buyers.
Under the program, eligible buyers can get financing for up to 20 years. The markup rate will remain at 5 percent for the first 10 years, making repayment more affordable.
To support the new system, the SECP has introduced a detailed regulatory framework. This will allow NBFCs to offer housing loans using their own funds or by partnering with banks and development finance institutions.
The new rules also include guidelines on eligibility, operations, and monitoring. Officials said these measures are important for responsible and sustainable financing.
In other news read more about SECP Expands Access To Housing Loans Under PM Apna Ghar Program
With the addition of NBFCs and the new 10 million rupee financing option, the Apna Ghar Program is expected to help more Pakistanis achieve the dream of owning a home.
