Mera Ghar Mera Ashiana: Govt’s Big Housing Scheme Offers 20-Year Low-Interest Home Loans in Pakistan
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The Government of Pakistan has launched a new initiative called Mera Ghar Mera Ashiana, a housing finance program designed to help Pakistanis purchase or build their first home. With low interest rates, long repayment options, and government-backed risk sharing, the scheme promises to make home ownership possible for millions of families. According to the State Bank of Pakistan’s official circular, this program is part of a larger effort to address the housing shortage and support affordable housing development.
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Why Mera Ghar Mera Ashiana Matters for Pakistan
Owning a home has always been a dream for many families in Pakistan, but high property prices and limited financing options have kept it out of reach. Mera Ghar Mera Ashiana changes this by offering low markup rates—5% for Tier 1 loans and 8% for Tier 2 loans—along with 20-year repayment terms. This makes monthly installments affordable for middle- and low-income households. Beyond individual benefits, the program also stimulates the construction sector, creates jobs, and supports the national economy.
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Key Features of Mera Ghar Mera Ashiana
The scheme includes several attractive features for first-time home buyers:
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Eligibility: Only first-time homeowners with a valid CNIC who do not own any other housing unit.
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Scope: Purchase of a house or flat, construction on an owned plot, or purchase of a plot plus construction.
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Size Limit: Up to 5 marla houses or flats up to 1,360 sq. ft.
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Loan Size:
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Tier 1: Up to PKR 2 million at 5% markup.
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Tier 2: Above PKR 2 million up to PKR 3.5 million at 8% markup.
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Repayment Period: Up to 20 years, with markup subsidy for 10 years.
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Loan-to-Value Ratio: 90:10 (bank provides 90%, applicant pays 10%).
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Charges: No processing fee and no prepayment penalty.
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Risk Coverage: 10% of outstanding loan portfolio covered by the government on a first-loss basis.
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Step-by-Step Guide to Apply
Applying for Mera Ghar Mera Ashiana is simple:
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Visit any participating financial institution (PFI) including commercial banks, Islamic banks, microfinance banks, and HBFCL.
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Fill out the housing loan application form under the Mera Ghar Mera Ashiana scheme.
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Provide the required documents: CNIC, proof of income, property documents (if applicable).
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The bank will evaluate eligibility and creditworthiness.
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Once approved, the loan is disbursed for purchasing or constructing your home.
This process ensures transparency while making housing finance accessible across Pakistan.
Complete Learn How to Apply Online: How to Apply for Mera Ghar Mera Ashiana Govt Scheme in September 2025
Eligibility and Requirements
To qualify for the program, applicants must meet these conditions:
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Must be a citizen of Pakistan with a valid CNIC.
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Must be a first-time homeowner—not owning any other property.
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The financed property must fall within the size limits (5 marla house or 1,360 sq. ft. flat).
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A minimum 10% equity contribution is required from the applicant.
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Proof of income and repayment ability must be provided.
These requirements ensure that the scheme directly benefits genuine first-time homebuyers.
Comparison with Previous Housing Schemes
Unlike earlier housing initiatives, Mera Ghar Mera Ashiana offers:
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Longer loan tenor (20 years vs. 10–15 years).
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Lower fixed markup rates (5–8%) compared to conventional loans.
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Zero processing fees and no prepayment penalty.
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Government-backed risk sharing, making banks more willing to lend.
This makes it one of the most accessible and affordable housing finance options Pakistan has ever introduced.
Impact on Housing and Economy
The scheme’s impact goes beyond just home ownership:
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Encourages construction activity, boosting related industries like cement, steel, and labor.
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Reduces the housing shortage by promoting affordable housing units.
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Enhances financial inclusion by bringing more citizens into the formal banking system.
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Improves the quality of life for families who move from rental housing to ownership.
By linking individual prosperity with national economic growth, Mera Ghar Mera Ashiana is a win-win initiative.
Challenges and Concerns
While promising, the scheme may face challenges:
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Implementation speed—banks must process applications efficiently.
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Awareness gap—many eligible families may not know about the scheme.
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Rising construction costs—inflation in materials could reduce affordability.
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Monitoring misuse—ensuring loans are used for genuine housing purposes.
Addressing these challenges will be crucial for the program’s long-term success.
Future Prospects
The Mera Ghar Mera Ashiana scheme is expected to expand further as demand grows. The government may increase subsidy budgets, include larger loan tiers, or offer additional incentives for low-income groups. The scheme is also aligned with Pakistan’s vision for Digital Pakistan and economic stability, ensuring that housing finance continues to evolve with time.
FAQs about Mera Ghar Mera Ashiana
Q1: Who can apply for Mera Ghar Mera Ashiana?
Any Pakistani citizen with a CNIC who does not already own a house or flat.
Q2: What is the maximum loan amount?
Up to PKR 3.5 million, depending on the loan tier.
Q3: What is the interest rate?
Tier 1 loans are offered at 5% markup, while Tier 2 loans are at 8% markup.
Q4: What is the repayment period?
Up to 20 years, with government subsidy for 10 years.
Q5: Do I need to pay any processing fees?
No, banks will not charge processing fees or prepayment penalties under this scheme.
Conclusion
The Mera Ghar Mera Ashiana housing scheme is a groundbreaking initiative by the Government of Pakistan that makes affordable home ownership a reality. With low interest rates, long repayment options, and government risk-sharing, this program offers hope to millions of families dreaming of their own home.
If you are a first-time homebuyer in Pakistan, now is the perfect time to apply and take advantage of this opportunity. For complete details, visit the State Bank of Pakistan’s official notification here.
✨ Take the first step toward your dream home today with Mera Ghar Mera Ashiana.
