The federal government has approved the inclusion of non-banking finance companies in the Prime Minister’s Apna Ghar Scheme, further expanding public access to the housing loan programme.
The decision was taken on the proposal of the Securities and Exchange Commission of Pakistan (SECP), allowing more people, especially those without traditional bank accounts, to apply for affordable housing finance.
Under the approved expansion, non-banking housing finance companies and investment finance companies will be able to provide loans of up to Rs10 million under the Apna Ghar Scheme.
Microfinance companies will also be allowed to provide loans of up to Rs5 million under the programme, according to the SECP.
The SECP said loans under the scheme will be available at only 5% interest rate for the first 10 years. The move is expected to make housing finance more accessible for people who are not connected to the traditional banking system.
Digital network to reach remote areas
According to the SECP, NBFCs have a digital network that reaches remote and underdeveloped areas.
Officials said this wider reach will help expand access to the Prime Minister’s Apna Ghar Programme for people living in backward regions.
The SECP has also issued a framework for housing finance through non-banking finance companies. Under the framework, NBFCs will also be able to provide loans in partnership with banks and other financial institutions.
