The federal government has decided to make the Prime Minister’s Apna Ghar Programme more accessible by allowing Non-Banking Finance Companies (NBFCs) to participate in the housing finance scheme. The move is aimed at helping more citizens achieve homeownership, particularly those with limited access to traditional banking services.
The decision was approved following recommendations from the Securities and Exchange Commission of Pakistan (SECP), which has also issued the regulatory framework for the initiative.
Under the new framework, non-banking housing finance and investment finance companies will be able to offer housing loans of up to Rs10 million, while microfinance companies can provide loans of up to Rs5 million.
Borrowers under the scheme will receive housing finance at a 5% annual markup for the first 10 years, making it easier for low and middle income families to build, complete, or purchase a home.
According to the SECP, NBFCs have a wider presence in remote and underserved areas where conventional banks have limited operations. This expansion will enable many people who previously could not access housing finance due to banking requirements or the lack of a bank account to benefit from the programme.
The new framework also allows NBFCs to work in partnership with banks and other financial institutions, a move expected to speed up and simplify the loan approval process.
The PM Apna Ghar Programme aims to provide affordable housing finance to low and middle income households, while also supporting the construction sector, boosting investment, and creating employment opportunities.
With the latest changes, eligible applicants can obtain housing loans ranging from Rs2.5 million to Rs10 million under easier terms through the government backed scheme.
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