The State Bank of Pakistan has rolled out new steps to make it easier and faster for people to get financing under the government’s low-cost housing programme, “Wazir-e-Azam Apna Ghar”.
In a circular issued on Tuesday, the central bank said it wants banks to process applications more quickly and assess borrowers with greater flexibility. The move is expected to help more families move closer to owning a home.
Faster approvals and simpler checks
Under the revised rules, banks and the House Building Finance Company Limited can now complete credit approvals within 15 working days, provided all required documents are submitted. This timeline is aimed at reducing delays that often discourage applicants.
The SBP has also adjusted how banks calculate repayment ability. Monthly instalments, including housing loans and other consumer loans, must stay within 65 percent of a borrower’s net disposable income. This is meant to keep repayments manageable while still widening access.
Flexibility in property valuation
The new framework also simplifies property assessments for lower-value homes. For properties worth up to Rs5 million, banks can carry out valuations using their own internal teams.
For homes above this value, at least one evaluator from a panel approved by the Pakistan Banks Association must be involved. This step is intended to maintain transparency while avoiding unnecessary delays in smaller cases.
Relaxed rules to widen access
To further support the scheme, the SBP has eased certain prudential regulations, including HF-3 and HF-7, within the programme’s scope. These changes are expected to help lenders approve more applications without compromising risk controls.
Banks and housing finance institutions have been directed to follow the updated guidelines closely. The central bank said the changes are part of a broader effort to improve access to housing finance and support home ownership across the country.
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