Islamabad: The federal government has expanded the Prime Minister’s Apna Ghar Programme by allowing eligible Non-Banking Finance Companies (NBFCs) to participate in the affordable housing finance initiative. The move is expected to increase access to home financing, particularly for people who have limited access to conventional banking services.
According to Beyond Time News, the decision is aimed at broadening the country’s housing finance network and helping more families achieve homeownership through subsidised loans.
NBFCs to Offer Housing Loans Under the Programme
The inclusion of NBFCs follows a proposal by the Securities and Exchange Commission of Pakistan (SECP), which highlighted the sector’s ability to serve customers who are often outside the traditional banking system.
Under the updated framework:
- Non-banking housing finance companies and investment finance companies can provide housing loans of up to Rs10 million.
- Microfinance companies can offer housing loans of up to Rs5 million.
The expansion creates additional financing channels for eligible applicants and is expected to improve access to affordable housing across the country.
Greater Access for Underserved Communities
Many Pakistanis face challenges in securing housing finance due to limited banking access or strict lending requirements.
By bringing NBFCs into the programme, the government hopes to reach underserved groups through institutions that often use more flexible financing models and have a wider presence in communities that lack conventional banking services.
According to Beyond Time News, the initiative is designed to make affordable housing finance more accessible while encouraging financial inclusion.
PM Apna Ghar Program Expanded as SECP Allows Non-Banking Institutions to Offer Home Loans
How the Apna Ghar Programme Works
The Prime Minister’s Apna Ghar Programme supports first-time homebuyers by reducing borrowing costs through government-backed incentives.
Eligible applicants can receive housing loans with:
- A repayment period of up to 20 years.
- A 5% subsidised mark-up rate for the first 10 years.
- Government-supported mark-up subsidies and risk coverage to make financing more affordable.
The programme aims to reduce financial barriers that prevent many families from purchasing their first home.
SECP Introduces Regulatory Framework
To support the programme’s expansion, the SECP has introduced a regulatory framework that allows qualified lending NBFCs to provide housing finance either independently or in partnership with other financial institutions.
These partnerships may include:
- Commercial banks
- Development finance institutions
- Other eligible NBFCs
The framework is intended to ensure that participating institutions operate under clear regulatory standards while expanding the availability of housing loans.
Why the Decision Matters
Pakistan continues to face a significant housing shortage, with affordable home financing remaining out of reach for many households.
Experts believe expanding the number of participating financial institutions can improve competition, increase loan availability and help address the country’s growing demand for affordable housing.
The decision may also strengthen Pakistan’s non-banking financial sector by giving NBFCs a larger role in long-term housing finance.
Looking Ahead
The inclusion of NBFCs marks another step in the government’s efforts to improve financial inclusion and support affordable homeownership.
If implemented effectively, the expanded programme could help more first-time buyers secure financing while contributing to growth in the housing and construction sectors, which play an important role in Pakistan’s economy.
Frequently Asked Questions
What is the Prime Minister’s Apna Ghar Programme?
It is a government initiative that provides subsidised housing finance to eligible first-time homebuyers through participating financial institutions.
What are NBFCs?
Non-Banking Finance Companies (NBFCs) are licensed financial institutions that provide financing and other financial services without operating as traditional banks.
How much can borrowers receive under the scheme?
Eligible non-banking housing finance and investment finance companies can offer loans of up to Rs10 million, while microfinance companies can provide up to Rs5 million.
What is the subsidised mark-up rate?
Eligible first-time homebuyers can obtain housing loans at a 5% mark-up rate for the first 10 years, with repayment periods of up to 20 years.
Why were NBFCs added to the programme?
The government aims to expand access to affordable housing finance by reaching underserved communities and offering more financing options beyond traditional banks.
Hashtags
#ApnaGharProgramme #HousingFinance #Pakistan #NBFC #AffordableHousing #SECP #FirstTimeHomebuyers #FinancialInclusion #RealEstatePakistan #EconomicNews
