Mera Ghar Mera Ashiana Housing Finance 2025: 20-Year Low-Interest Loan For Families
Mera Ghar Mera Ashiana Housing Finance 2025: 20-Year Low-Interest Loan For Families. Owning a home in Pakistan has become increasingly challenging due to rising property prices and inflation. The Mera Ghar Mera Ashiana Housing Finance 2025 scheme, launched by the State Bank of Pakistan (SBP) in partnership with the Government of Pakistan, offers an incredible opportunity for first-time home buyers. With low markup rates, long repayment terms, and government subsidies, families across the country can now achieve their dream of owning a home with ease and affordability.
In this article, we’ll cover everything you need to know about eligibility, loan limits, application procedures, and benefits, helping you make an informed decision in 2025.
What is the Mera Ghar Mera Ashiana Scheme?
The Mera Ghar Mera Ashiana Scheme is a specialized housing finance program aimed at providing affordable loans to first-time home buyers in Pakistan. Its primary goal is to promote home ownership for low- and middle-income families by offering loans with subsidized interest rates and long-term repayment plans.
Key objectives of the scheme include:
- Making home ownership accessible to first-time buyers
- Reducing financial barriers with low-cost loans
- Encouraging formal housing construction and development
This scheme covers purchases, construction, and development of homes, whether on owned land or newly acquired plots.
Who is Eligible for the Housing Finance?
Eligibility criteria are designed to ensure that the scheme reaches genuine first-time home buyers:
- Must be a Pakistani citizen with a valid CNIC
- Should not currently own any house, flat, or apartment
- Must be a first-time home buyer looking to purchase or construct a house
This ensures that benefits are directed toward families who genuinely need financial support to enter the housing market.
How Can You Use the Loan?
The Mera Ghar Mera Ashiana loan is flexible, allowing borrowers to:
- Purchase an existing house or flat
- Construct a house on already owned land
- Purchase a plot and construct a house afterward
This flexibility ensures that whether you already own a plot or are starting from scratch, you can benefit from the scheme.
Property Size Limits
To maintain affordability and practicality, the scheme sets specific size limits for houses and flats:
| Property Type | Maximum Size |
|---|---|
| House | 5 Marla |
| Flat/Apartment | 1360 square feet |
These limits ensure that the scheme targets low- to middle-income families while providing comfortable living spaces.
Loan Amount and Tiers
The housing finance is structured in two tiers based on the loan size:
| Tier | Loan Amount (PKR) | Fixed Markup Rate |
|---|---|---|
| T1 | Up to 2,000,000 | 5% |
| T2 | 2,000,001 – 3,500,000 | 8% |
This tiered approach allows families with varying income levels to access suitable financial support.
Loan Tenure and Subsidy Period
- Maximum Loan Term: 20 years
- Government Subsidy on Markup: First 10 years
This long repayment period, combined with government support, ensures affordable monthly installments and reduces financial stress during the initial years.
Markup Rates Explained
The markup rate for the loan is simple and transparent:
- Banks charge 1-Year KIBOR + 3%
- Borrowers pay a fixed markup depending on the tier:
- Tier 1: 5%
- Tier 2: 8%
This is much lower than standard bank mortgage rates, providing significant savings to borrowers.
Key Features at a Glance
| Feature | Details |
|---|---|
| Loan Amount | PKR 2.0 – 3.5 million |
| Loan Tenure | Up to 20 years |
| Subsidy Duration | First 10 years |
| Fixed Markup Rate (T1) | 5% |
| Fixed Markup Rate (T2) | 8% |
| Loan to Value Ratio | 90:10 |
| Processing Fees | None |
| Prepayment Penalty | None |
| Eligibility | First-time home buyers only |
| Property Size Limit | 5 Marla house / 1360 sq. ft. flat |
Loan-to-Value Ratio (LTV)
The LTV ratio is set at 90:10, meaning the bank provides 90% of the property value as a loan while the borrower contributes only 10% as equity.
Benefits of high LTV ratio:
- Reduces upfront capital requirement
- Makes home ownership achievable for families with limited savings
- Encourages formal housing market participation
Where Can You Apply?
The scheme is widely accessible through multiple financial institutions:
- Commercial Banks
- Islamic Banks
- Microfinance Banks (MFBs)
- House Building Finance Corporation (HBFC)
Visit your nearest branch for application forms, guidance, and eligibility verification.
Additional Benefits for Borrowers
The Mera Ghar Mera Ashiana Scheme offers several advantages over traditional home loans:
- No Processing Fees: Apply without extra bank charges
- No Prepayment Penalties: Pay off early without hidden fees
- Government Risk Coverage: Government covers 10% of the outstanding portfolio on a first-loss basis
- Transparent Markup Rates: Fixed and clearly communicated
These features make it an ideal choice for first-time buyers in Pakistan.
Responsibilities of Participating Banks
Banks participating in the scheme are required to:
- Promote the program actively to reach potential borrowers
- Streamline application processing for quick approval
- Prevent misuse and ensure transparency in lending
This ensures borrowers receive smooth and reliable services throughout the loan process.
Markup and Risk Subsidy Mechanism
While exact details of subsidy disbursement will be communicated by the government, it is clear that:
- Government will support the first 10 years of markup payments
- Credit loss subsidy ensures minimal risk for banks and safe lending
This combination of low-cost finance and risk protection makes the scheme one of the most attractive in Pakistan’s housing sector.
Why This Scheme is a Game-Changer
The Mera Ghar Mera Ashiana Scheme addresses major challenges in home ownership:
- Affordability: Low markup rates and government subsidy make home loans manageable
- Accessibility: Available across commercial, Islamic, and microfinance banks
- Long Tenure: 20-year repayment period with fixed rates reduces financial pressure
- Flexibility: Loans can be used to buy, construct, or purchase a plot and build
Families now have a real opportunity to achieve the dream of owning their first home without the stress of high-interest loans or excessive down payments.
FAQs
Q1: Who can apply for the Mera Ghar Mera Ashiana Housing Finance 2025?
A1: Only Pakistani citizens who are first-time home buyers and do not currently own any house or flat are eligible.
Q2: What is the maximum loan tenure under this scheme?
A2: The loan tenure is up to 20 years, with government subsidy provided on markup for the first 10 years.
Q3: Can I use the loan to construct a house on already owned land?
A3: Yes, the scheme allows construction on existing land, purchasing a plot, or buying an existing house or flat.
Q4: Are there any processing fees or prepayment penalties?
A4: No, the scheme offers zero processing fees and no prepayment penalties, making it financially transparent.
Q5: Which banks participate in the Mera Ghar Mera Ashiana Scheme?
A5: Commercial banks, Islamic banks, microfinance banks, and the House Building Finance Corporation (HBFC) are authorized to provide loans under this program.
Conclusion
The Mera Ghar Mera Ashiana Housing Finance 2025 scheme is a transformative opportunity for first-time home buyers in Pakistan. With affordable interest rates, government subsidies, long-term repayment plans, and no hidden fees, families can finally achieve the dream of owning a home.
