Pakistanis to get quick house loans as SBP instructs banks

The State Bank of Pakistan (SBP) has instructed banks and the House Building Finance Company Limited (HBFCL) to introduce a faster approval mechanism for applications submitted under the government’s housing finance scheme.

In a circular issued, the State Bank of Pakistan (SBP) said banks and HBFCL must complete credit decisions within 15 working days of receiving a complete application.

To accelerate processing, the SBP has also relaxed property valuation requirements. Banks and HBFCL will now be allowed to rely on their internal assessments for properties worth up to Rs.5 million. For higher-value properties, at least one valuation must still be conducted by an appraiser approved by the Pakistan Banks’ Association (PBA).

The SBP has also revised eligibility and financing conditions for applicants. Under the updated guidelines, total monthly loan repayments—including housing finance and all other consumer financing obligations—must not exceed 65 percent of the borrower’s net disposable income.

Meanwhile, the government has rebranded the initiative as the “Wazir-e-Azam Apna Ghar Program – Ghar Ho Tu Apna,” replacing its previous name ‘Mera Ghar–Mera Ashiana’.

Under the scheme, eligible applicants can obtain financing of up to Rs. 10 million at a subsidized flat rate of 5 percent for purchasing a housing unit or constructing a house on already owned land.