Mera Ghar - Mera Ashiana Scheme- Eligibility, Criteria and Other Details

The State Bank of Pakistan (SBP) has issued a circular outlining the eligibility criteria and financial terms for a subsidized housing finance scheme “Mera Ghar – Mera Ashiana”.

According to the circular, the applicant must be a citizen of Pakistan holding a valid Computerized National Identity Card (CNIC) and must not already own a housing unit in their name.

The scheme allows purchase of a house or flat, construction of a house on an already owned plot, and purchase of a plot and construction of house.

The applicant can apply for loan for houses of up to 5 Marla and flats or apartments of up to 1360 square feet.

The facility will be available through all commercial banks, Islamic banks, microfinance banks (MFBs), and the House Building Finance company Limited (HBFCL).

The financing tiers and loan limits are for tier 1 (T1): loans up to Rs.2.0 million, for Tier 2 (T2): loans above Rs.2.0 million and up to Rs.3.5 million.

The tenure of loan will be for 20 years, with subsidy available for the first 10 years. Fixed customer pricing will be 5 percent for Tier 1, and 8 percent for Tier 2.

According to the circular the bank pricing set at One-Year KIBOR + 3 percent. There will be no processing charges neither any prepayment penalties.

Loan-to-Value (LTV) ratio will be 90:10 which means 90 percent financing and 10 percent equity contribution by the debtor.

Risk coverage of 10 percent on the outstanding portfolio under the scheme, provided on a first-loss basis.