ISLAMABAD – The federal government has introduced a Markup Subsidy and Risk Sharing Scheme namely ‘Mera Ghar – Mera Ashiana’ to promote affordable housing finance to citizens who want to own a house for first time.
The State Bank of Pakistan has issued a circular in this regard, elaborating the features of the scheme that offers loans for the period of 20 years at reasonable markup rate.
The central bank has instructed all commercial banks, Islamic banks and other financial institutions to disseminate the scheme through their branch networks or other means.
Mera Ghar Mera Ashiana Eligibility Criteria
The SBP has fixed easy eligibility criteria for the scheme so maximum number of citizens can be entertained.
As per the circular, first time home owners citizens of Pakistan holding CNICs are eligible for scheme. It highlights that the applicants must not own any housing unit in their name.
The loan can be obtained for purchase of house or flat, construction of house on already owned plot and purchase of plot and construction of house.
Size of Houses for Loan
The loan will be provided for house of up to 5 Marla or flat/apartment of up to 1360 sq. ft. area
Where to Apply
All commercial banks, Islamic banks, MFBs and HBFCL have been directed to offer the loans under Mera Ghar – mera Ashiana scheme.
Loan Limit
The central bank has introduced two tiers for the loan. Under the first tier, loans of up to Rs2 million will be offered while the tier 2 offers loans above Rs2 million and up to Rs3.5 million.
Maximum Loan Tenure
The loan is offered for the period of 20 years with subsidy for 10 years.
Bank Pricing
One Year KIBOR + 3%
The banks will not charge any processing fee while there will be no prepayment penalty.
Loan to Value Ratio
90:10 (90% loan & 10% equity)
Risk Coverage
10% of the outstanding portfolio under the scheme on first loss basis
