Mera Ghar Mera Ashiana Loan Scheme
Mera Ghar Mera Ashiana Loan Scheme For many families in Pakistan, the dream of owning a home often feels out of reach. Rapid urbanization, rising property prices, and high construction costs have made it increasingly difficult for middle- and low-income households to secure a permanent place to live. Traditional bank loans also pose challenges because of high markup rates and strict repayment terms that put unnecessary stress on already limited budgets.
To address this pressing issue, the Government of Pakistan, under the supervision of the State Bank of Pakistan (SBP), launched the Mera Ghar Mera Ashiana Loan Scheme. This initiative is specially designed for first-time homeowners and offers affordable loans with subsidized markup rates, risk-sharing for banks, and long repayment options. The scheme is not only an opportunity for families to own their dream homes but also a way to promote economic stability through growth in the housing sector.
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Quick Facts of the Scheme
For readers who want a brief snapshot before diving into details, here are the most important points about the program:
- Target group: First-time home buyers with valid CNIC.
- Maximum loan tenure: 20 years, with subsidy applied for the first 10 years.
- Loan categories: Tier 1 up to PKR 2.0 million and Tier 2 up to PKR 3.5 million.
- Markup for borrowers: 5% (T1) and 8% (T2).
- 90% financed by banks, only 10% down payment from the applicant.
- Offered by all major banks, Islamic banks, microfinance banks, and HBFCL.
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What is the Mera Ghar Mera Ashiana Scheme?
The scheme is essentially a government-backed housing finance program that makes home loans affordable for people who would otherwise struggle with commercial lending options. Instead of being tied to fluctuating market rates like KIBOR plus margins, families benefit from a fixed markup rate throughout the repayment period. This predictability helps households plan their finances without the fear of sudden increases in installments.
At the same time, banks are encouraged to participate because the government covers part of the risk through a 10% first-loss guarantee. This means if some borrowers fail to repay, the losses are partially absorbed by the scheme rather than the bank alone. As a result, financial institutions are more willing to provide loans to low- and middle-income households who might previously have been overlooked.
In short, the program creates a win-win situation: citizens get affordable housing loans while banks feel secure enough to expand their lending portfolio in the housing sector.
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Who Can Apply? Eligibility Criteria
The Mera Ghar Mera Ashiana Loan Scheme is not open to everyone, as it is specifically targeted toward families who have never owned a home before. This ensures that resources are directed to those who genuinely need assistance. Any Pakistani citizen with a valid CNIC can apply, but they must prove they do not already own a house, flat, or plot.
Banks will also evaluate the applicant’s financial position to make sure they have the capacity to repay the loan. This does not mean that only salaried individuals can apply; small business owners and self-employed individuals are also eligible, provided they can show a steady source of income. Applicants should be ready to share their income history, employment documents, and bank account details for assessment.
Eligibility requirements usually include:
- Being a Pakistani citizen with valid CNIC.
- Not owning any property under your name.
- Proof of steady income (salary slips or business records).
- Bank statements or financial documents showing repayment ability.
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What the Loan Covers Scope
The flexibility of the scheme is one of its strongest features. Unlike some housing finance programs that are limited to only one type of property, this loan covers multiple housing needs. Families can use it to buy an already constructed home, build a house on their owned plot, or even purchase a new plot and then construct on it.
For example, a young couple living on rent in the city can apply for a loan to purchase a ready flat that suits their budget, while a family in a rural area might prefer to use the facility for constructing a small house on land they already own. By addressing different housing scenarios, the program makes itself useful for a wide range of families across Pakistan.
You can apply for the loan in the following cases:
- Purchase of a ready-to-move house or flat.
- Construction of a house on your own plot.
- Purchase of a plot and construction of a house on it.
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Property Size & LTV Rules
To keep the scheme focused on affordable housing, the government has placed clear size restrictions. Large, luxury homes are excluded, while small and medium units are prioritized. This way, the scheme supports families who need a home for living, not for investment or commercial gain.
- House limit: Up to 5 Marla.
- Flat/Apartment limit: Up to 1,360 square feet.
Another supportive rule is the Loan-to-Value (LTV) ratio. Under this scheme, banks finance 90% of the property value while the borrower only contributes 10% as equity or down payment. This is a huge relief for families who often cannot manage large upfront payments.
Loan Tiers, Limits & Tenure
Loans are categorized into two tiers to meet the needs of different income groups. Tier 1 loans are ideal for small homes and modest budgets, while Tier 2 loans provide slightly larger financing for bigger families who require more space.
- Tier 1 (T1): Up to PKR 2.0 million.
- Tier 2 (T2): More than PKR 2.0 million and up to PKR 3.5 million.
The repayment period is also very borrower-friendly. With a maximum tenure of 20 years, families can spread their repayments into smaller, more manageable monthly installments. During the first 10 years, the government’s markup subsidy significantly lowers the cost, making it easier for families to adjust to their financial commitments.
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Markup, Subsidy & Risk Coverage
One of the most attractive features of the scheme is its fixed markup rates, which remain the same throughout the tenure. Borrowers in Tier 1 pay only 5%, while those in Tier 2 pay 8%, far below the normal market rates. This stability shields families from market fluctuations and gives them peace of mind in planning long-term budgets.
On the banks’ side, the government provides risk coverage of 10% on the outstanding loan portfolio. This means if defaults occur, the banks are partially protected, making them more confident in lending to first-time home buyers. Together, these features ensure both affordability for borrowers and security for lenders.
How to Apply: Branch & Online Registration
Applying for the loan is simple, and applicants can choose between visiting a bank branch or applying online through the bank’s portal.
Steps for in-branch application:
- Visit any participating bank branch near you.
- Request the Mera Ghar Mera Ashiana application form.
- Submit CNIC, proof of income, and bank statements.
- Provide property documents (purchase or construction).
- Bank evaluates eligibility and loan size.
- After approval, funds are disbursed according to the plan.
Steps for online registration:
- Visit the official website of your bank or SBP’s housing finance section.
- Select the Mera Ghar Mera Ashiana Loan option.
- Upload required documents such as CNIC, salary slips, and property details.
- Submit the application for verification.
- Receive confirmation and approval via email or SMS.
EMI Table
To give a practical example of affordability, here’s an estimated installment calculation for two sample cases:
| Loan Amount (PKR) | Rate | Tenure | Monthly EMI (Approx.) | Total Payable | Interest Paid |
|---|---|---|---|---|---|
| 2,000,000 | 5% | 20 yrs | 13,199 | 3,167,788 | 1,167,788 |
| 3,500,000 | 8% | 20 yrs | 29,275 | 7,026,097 | 3,526,097 |
This table clearly shows how manageable the installments are compared to renting, especially with the long repayment period and subsidized rates.
Benefits of the Scheme
The Mera Ghar Mera Ashiana Loan Scheme provides multiple benefits that make it highly attractive for first-time buyers.
- Low and fixed markup of 5% and 8%.
- Long repayment tenure of up to 20 years.
- Affordable down payment of only 10%.
- Wide bank participation for easy access.
- No hidden charges or penalties for early repayment.
- Flexibility for purchase, construction, or combined financing.
These features combine to make homeownership more achievable for low- and middle-income families.
Final Thoughts
The Mera Ghar Mera Ashiana Loan Scheme 2025 is a groundbreaking initiative that makes homeownership realistic for thousands of families across Pakistan. With its affordable markup, small down payment, and long repayment tenure, it removes the financial barriers that have stopped many from owning their own home.
If you meet the eligibility requirements, now is the time to take advantage of this opportunity. Visit your nearest participating bank branch or apply online through your bank’s portal, and always verify details from the official SBP website before final submission. This could be the first step toward securing your dream home for your family.