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LATEST UPDATES: APNA GHAR SASTA KARZ SCHEME

Update (February 17, 2022): The State Bank of Pakistan (SBP) has recently revised the markup rates downwards for Tier-1 of the Mera Pakistan Mera Ghar loan financing scheme. This tier of the markup subsidy programme is specifically used to finance the housing units available in the projects introduced under the Naya Pakistan Housing Programme.

Essential FAQs About ‘Mera Pakistan Mera Ghar’

All FAQs About Markup Subsidy Scheme

Update (February 14, 2022): The Faisalabad Women Chamber of Commerce and Industry (FWCCI) has joined hands with the State Bank of Pakistan to facilitate women entrepreneurs in the region. These organizations have come together to help out business women applying for the different loan schemes, including Mera Pakistan Mera Ghar and Prime Minister’s Kamyab Jawan Programme.

A special session guiding the audience regarding the documentation process of the government-backed financing schemes was jointly held by the SBP and FWCCI. The event was addressed by Mrs Nighat Shahid, who appreciated the cooperation of the State Bank. 

While speaking to the audience, she praised the vast potential of women entrepreneurs who are either doing business from home in small and medium level enterprises and recognized the significance of their role in the region’s commercial and industrial growth.

The Senior Joint Director of SBP Banking Services in Faisalabad Muhammad Akbar said that an exceptional help desk would also be established at the FWCCI to facilitate the female applicants regarding documentation and securing loans under the different state-run financing schemes. In addition, more such educational sessions regarding the loan schemes are to be held at the FWCCI in the future.

Update: (December 30, 2021): Prime Minister Imran Khan was invited as a chief guest to a key ceremony regarding the Mera Pakistan Mera Ghar Scheme to approve a loan worth PKR 100 billion. 

While addressing the event, the premier appreciated the significant contribution made by the commercial banks to facilitate the general public with the home financing facility under the government and SBP-backed scheme. 

PM Imran also expressed satisfaction that the low and middle-income groups were now being widely benefited by the Apna Ghar Sasta Karz low-cost housing finance scheme.  

“Pakistanis working as workers abroad had one dream – to build a house for themselves and their families,” the prime minister remarked during his address.

Here’s a tweet shared by the official Twitter handle of Radio Pakistan containing the prime minister’s speech on occasion.


Update (September 09, 2021): The SBP and government-run markup subsidy housing scheme, Mera Pakistan Mera Ghar, is progressing in the right direction. Many commercial banks around the country have already started approving financing for the task. As of August 2021, bank loans worth up to PKR 59 billion have been approved for the applicants of the Apna Ghar Sasta Karz scheme living in different parts of the country, according to SBP’s official Twitter handle. This is what the tweet says:

Update (April 29, 2021): According to a recent article by a renowned news publication of the country, an official statement was released by the State Bank of Pakistan on April 27, 2021. It significantly highlighted the success of the ‘Mera Pakistan Mera Ghar’ Scheme, explaining how it has resulted in an unprecedented growth of Pakistan’s housing and construction sector. 

“This represents a growth of Rs54 billion or 36% in (just) three-quarters of FY21 compared to a stagnant position in earlier quarters. Such level of growth in housing and construction finance within a short period has never been witnessed in Pakistan’s history,” SBP stated. 

“The State Bank has been actively engaged with commercial banks to ensure that a vast majority of the public benefits from the ‘Mera Pakistan Mera Ghar’ housing finance scheme,” the statement further added.

Under the leadership of Prime Minister Imran Khan, the government of Pakistan launched the ‘Mera Pakistan Mera Ghar’ scheme in the latter half of 2020. It is a markup subsidy program run by the State Bank of Pakistan. The authorities have set aside a budget of PKR 36 billion to offer this home loan facility with subsidized markup rates.

The concept behind introducing the ‘Mera Pakistan Mera Ghar schemes is to facilitate the masses with low-cost home financing solutions. The State Bank of Pakistan has taken onboard almost all central commercial banks to expand the reach of the government’s markup subsidy program nationwide. 

So, if you want to learn more about this subsidized home loan program before applying for it, then you have made it to the right post. Here we have compiled a list of all the essential FAQs about the ‘Mera Pakistan Mera Ghar’ scheme.

Now, without further delay, let’s get the ball rolling!

IMPORTANT FAQS ABOUT ‘MERA PAKISTAN MERA GHAR SCHEME’

The government’s subsidy markup scheme is based on four credit tiers

The FAQs we will list here are based on the information released in the form of an official circular by the State Bank of Pakistan on March 25, 2021.

AM I ELIGIBLE TO APPLY FOR ‘MERA PAKISTAN MERA GHAR’?

Yes, if you are a citizen of Pakistan with a valid CNIC, you can apply for the scheme. However, it would help if you were a first-time homebuyer. Also, you can apply for the subsidized home loan program only once. 

CAN I PURCHASE LAND/PLOT UNDER THIS HOME LOAN FACILITY?

Since the government’s markup subsidy program also aims to benefit the construction industry, you can avail of the loan facility to purchase a piece of land only if you have plans to construct a house on it instead of using it as an investment property.

HOW MUCH LOAN AMOUNT CAN I BORROW USING THE SCHEME?

According to the recent amendments made by the State Bank of Pakistan in terms of the housing scheme, you can borrow up to 10 million using this home loan facility.

THE CREDIT TIERS FOR THE ‘MERA PAKISTAN MERA GHAR’ SCHEME?

To make the terms of the program easily understandable for the general public, the government of Pakistan has divided the markup subsidy program into four tiers. The distribution starts from Tier 0 to Tier 3. 

It is essential to mention that Tier 1 of the scheme has been designated for the low-cost housing projects approved by the Naya Pakistan Housing & Development Authority (NAPHDA).

WHAT IS THE SIZE OF THE PROPERTY UNIT AND THE AMOUNT OF LOAN DESIGNATED FOR EACH TIER?

The table below gives you all the necessary details in this regard. Take a look!

Credit Tier Housing Unit Size Limit Maximum Loan Amount
Tier 0 House up to 125 sq yd / Flat up to 1,250 sq ft Up to PKR 2 million
Tier 1 (for NAPHDA) House up to 125 sq yd / Flat up to 850 sq ft Up to PKR 2.7 million
Tier 2 House up to 125 sq yd / Flat up to 1,250 sq ft Up to PKR 6 million
Tier 3 House up to 250 sq yd / Flat up to 2,000 sq ft Up to PKR 10 million
WHAT IS THE PERCENTAGE OF MARKUP FOR EACH LOAN TIER?

The percentage of markup for this loan facility varies from tier to tier. Have a look at the table below for more information.

Credit Tier Markup Percentage
Tier 0 5% for the first 5 Years and 7% for the next 5 years
Tier 1 (for NAPHDA) 3% for the first 5 Years and 5% for the next 5 years
Tier 2 5% for the first 5 Years and 7% for the next 5 years
Tier 3 7% for the first 5 Years and 9% for the next 5 years
ARE THERE ANY UPPER LIMITS FOR THE MARKET VALUE OF PROPERTIES BOUGHT USING THE GOVERNMENT LOAN SCHEME?

As per the latest updates on the government’s markup subsidy program, the government has now removed the upper limits for the market value of financed housing units under the ‘Mera Pakistan Mera Ghar’ scheme. 

This means there is no cap in terms of property value for loan applicants of credit tiers 0, 2, and 3. However, credit tier 1, which is for the NAPHDA-approved project, still has a maximum limit of PKR 3.5 million for the market price of the financed unit.

THE MINIMUM LOAN TENURE ALLOWED IN THE GOVERNMENT’S MARKUP SUBSIDY SCHEME?

In the light of the recent amendments made by SBP, you can avail of the loan facility under the ‘Mera Pakistan Mera Ghar’ scheme for a minimum of five years. Previously, the limit was only set to 10 years. Plus, you can even extend the loan terms to 20 years, depending on your requirement. 

WHAT SHOULD I PROVIDE AS SECURITY AGAINST THE LOAN I AM BORROWING?

As per the official circular of SBP, the same housing unit financed will also be mortgaged in favour of the financial institution that is lending you the loan amount. Therefore, it is a convenient solution to fulfil the loan security requirement of the concerned bank.

ARE THERE ANY SPECIFIC BANKS FROM WHERE I CAN APPLY FOR ‘MERA PAKISTAN MERA GHAR’?

As discussed, the State Bank of Pakistan (SBP) has networked with all major commercial, Islamic, and microfinance banking institutions across the country for this government-run loan scheme. This means you can easily visit your nearest bank branch if you want to apply for ‘Mera Pakistan Mera Ghar’, also known as ‘Apna Ghar Sasta Qarz’.

HOW CAN I GET ASSISTED OR REGISTER A COMPLAINT AS A LOAN BORROWER OF THE GOVERNMENT SCHEME?

Unique Service Desks have been set up physically in the concerned bank branches and on the online portal of SBP. These service desks have been designed to help loan borrowers with their queries and complaints. Read this blog for the complete procedure if you want to sign up for the SBP’s online service desk for the loan markup scheme.

COMPLETE LIST OF FAQS ABOUT ‘APNA GHAR SASTA QARZ’ SCHEME BY SBP

For more information and details that you as an applicant should know about this government loan scheme, here is a link to the complete list of FAQs about ‘Mera Pakistan Mera Ghar’.

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