The government has approved major changes to the affordable housing loan scheme, increasing the maximum loan amount and setting ambitious targets to support homeownership in Pakistan.
The revised program aims to help thousands of families buy or build homes through subsidized financing.
Under the updated housing finance scheme, the maximum loan amount has been set at up to Rs10 million. The loans will be available to individuals who want to buy a house or construct a new home, making it easier for middle- and lower-income families to access housing finance.
Officials say the move is part of broader efforts to improve access to affordable housing across the country.
Interest rate fixed at 5%
The government has set the interest rate for consumers at 5% under the scheme. The maximum loan tenure has been fixed at 20 years, allowing borrowers to repay the loan over a long period with manageable installments.
These terms are intended to make home financing more affordable and accessible for a larger segment of the population.
The government has set a target to finance 500,000 houses over the next four years under the revised housing scheme. In the first year, loans will be provided for 50,000 houses, marking the initial phase of the program’s rollout.
Authorities believe the initiative will boost housing development and improve living standards.
Govt subsidy of Rs321bn planned
To support the program, the government will provide a subsidy of approximately Rs321 billion. This subsidy will help maintain the low interest rate and ensure the scheme remains financially accessible to eligible borrowers.
Both commercial banks and Islamic banks will participate in the housing loan scheme.
The program will be implemented jointly by the State Bank of Pakistan and the Ministry of Housing, ensuring proper oversight and execution.
Officials say the collaboration between the government and banking sector will help expand access to home financing across the country.
