Keeping in view need to improve availability of adequate housing in the country and important role of construction sector in boosting economic activities in other countries, Government of Pakistan envisions to increase the number of housing units manifold in coming years and has taken several measures in this regard.
To support this vision of Government of Pakistan, State Bank of Pakistan has taken several measures since July 2020 to support the provision of financing for the housing and construction sector. In October 2020, the Government of Pakistan augmented these efforts by introducing the Government Markup Subsidy Scheme, now commonly known as Mera Pakistan Mera Ghar (MPMG) markup subsidy Scheme. Government liberalized features of MPMG scheme in light of feedback of stakeholders to benefit the larger strata in March 2021.
Available in both conventional and Islamic mode, this scheme enables banks to provide financing for the construction and purchase of houses at very low financing rates for low to middle income segments of the population.
State Bank of Pakistan is the executing partner with Government of Pakistan and Naya Pakistan Housing and Development Authority (NAPHDA).
Financing / Loan Type – Mera Pakistan Mera Ghar
Following are the types of loans of ‘Mera Pakistan Mera Ghar‘ Scheme:
- Purchasing a house/ flat/apartment
- Purchasing a plot and construction there upon
- Extension in pre-owned housing unit
- Construction on already owned plot
Eligibility Criteria for Mera Pakistan Mera Ghar Scheme
Requirements for ‘Mera Pakistan Mera Ghar‘ Loan Scheme:
- All Pakistanis with valid CNIC and NICOP
- First time house owner
- One individual can have subsidized house loan facility under this scheme only for once
- For Naya Pakistan Housing and Development Authority (NAPHDA) projects, NAPHDA will shortlist the eligible candidate and upon request of candidate, will forward the candidate profile to banks for financing
Period / Tenure of Financing / Loan – Mera Pakistan Mera Ghar
Period of ‘Mera Pakistan Mera Ghar‘ Loan Scheme:
- Loan for a period of 5 Years
- Loan for a period of 10 Years
- Loan for a period of 15 Years
- Loan for a period of 20 Years
Types of Loans – Mera Pakistan Mera Ghar
Naya Pakistan Housing and Development Authority (NAPHDA) Projects:
- Up to Rs. 2.7 million can be financed under this category
- Financing is available for house measuring up to 125 Square Yards (5 Marla) with maximum covered are of 850 Square Feet
- Flat/apartment with maximum covered area of 850 square feet will be financed
- To be eligible under MPMG, maximum price (Market Value) of a single housing unit at the time of approval financing shall not exceed Rs. 3.5 million
Non-Naya Pakistan Housing and Development Authority (NAPHDA) Projects:
From Microfinance Banks:
- Microfinance banks can provide up to Rs. 2 million financing to eligible borrowers
From Commercial Banks/DFIs:
- Financing of up to Rs. 10 Million can be availed under this scheme
- Financing amount is dependent on the size of residential unit
- Up to Rs. 6 Million financing can be availed for a house measuring up to 5 Marla (125 Square Yards) and for a flat/apartment with the size up to 1,250 Square Feet
- For a house measuring up to 10 Marla (250 Square Yards) and a flat/apartment up to 2,000 Square Feet, financing up to Rs. 10 million can be availed
Interest Rates for Mera Pakistan Mera Ghar Scheme
Naya Pakistan Housing and Development Authority (NAPHDA) Projects:
Tier 1:
- Borrower will be charged financing rate of
- 3 percent for first five years
- 5 percent for next five years
- KIBOR + up to 250 bps for the remaining financing tenor
Non-Naya Pakistan Housing and Development Authority (NAPHDA) Projects:
Tier 0: For Microfinance Banks Borrowers
- Borrower will be charged financing rate of
- 5 percent for first five years
- 7 percent for next five years
- KIBOR + 700 bps for the remaining financing tenor
Tier 2: For Commercial Banks/DFIs Borrowers
- For financing a house measuring up to 5 Marla (125 Square Yards) and for a flat/apartment with the size up to 1,250 Square Feet, financing rate will be charged as follows:
- 5 percent for first five years
- 7 percent for next five years
- KIBOR + 400 bps for the remaining financing tenor
Tier 3: For Commercial Banks/DFIs Borrowers
- Financing to be availed for a house measuring up to 10 Marla (250 Squard Yards) and a flat/apartment up to 2,000 Square Feet, financing rate will be charged as follows:
- 7 percent for first five years
- 9 percent for next five years
- KIBOR + 400 bps for the remaining financing tenor
Installments Plan for Mera Pakistan Mera Ghar
| Financing Amount Tier 0 | Installment Tier 0 | Financing Amount Tier 1 | Installment Tier 1 | Financing Amount Tier 2 | Installment Tier 2 | Financing Amount Tier 3 | Installment Tier 3 |
| Monthly installment from year 1 to 5 | |||||||
| Rs. 0.5 Million | 3,300 | Rs. 1 Million | 5,546 | Rs. 1 Million | 6,600 | Rs. 6 Million | 46,518 |
| Rs. 1 Million | 6,600 | Rs. 2 Million | 11,092 | Rs. 3 Million | 19,799 | Rs. 8 Million | 62,024 |
| Rs. 2 Million | 13,199 | Rs. 2.7 Million | 14,974 | Rs. 6 Million | 39,597 | Rs. 10 Million | 77,530 |
| Monthly installment from year 6 to 10 | |||||||
| Rs. 0.5 Million | 3,751 | Rs. 1 Million | 6,351 | Rs. 1 Million | 7,501 | Rs. 6 Million | 52,492 |
| Rs. 1 Million | 7,501 | Rs. 2 Million | 12,702 | Rs. 3 Million | 22,503 | Rs. 8 Million | 69,990 |
| Rs. 2 Million | 15,002 | Rs. 2.7 Million | 17,147 | Rs. 6 Million | 45,007 | Rs. 10 Million | 87,487 |
*The installments have been calculated on the basis of financing tenor of 20 years. Installments for the period exceeding 10 years will be based on prevalent KIBOR at that time as per the conditions of scheme.
Documents Required for Mera Pakistan Mera Ghar Scheme
For Formal Salaried Person
| Loan Application Form (LAF) along with CF Undertaking | Original |
| Product Disclosure Sheet | Original |
| Valid CNIC of applicant & Co-partner (where applicable) | Copy |
| 2 passport size color Photographs of applicant & Co-partner (where applicable) | Original |
| Undertaking for first time homeowner | Original |
| Proof of allotment, transfer and/or Title Document of the property to be mortgaged | Copy |
| Direct Debit Authority (DDA) & Employer’s certificate mentioning that payroll account maintenance shall continue with the lending Bank (where applicable) | Original |
| Proof of Employment (along with length of employment) for example:Employment letter OREmployment Certificate ORAny valid documentary evidence from employer | Original / Copy |
| Income Proof document (salary breakup and deductions to be clearly mentioned) for example: Current Salary Slip OR Salary Certificate Account Maintenance Certificate along with last 6-month Bank statement with Salary CreditsNotes: – Maximum of 60 days old salary slip & Bank Statement may be accepted – Online / e-salary slips are acceptable with positive verification – Original salary slip / e-slip does not require stamp or sign | Original / Copy Original Original |
For Formal Business
| Loan Application Form (LAF) along with CF Undertaking | Original |
| Product Disclosure Sheet | Original |
| Valid CNIC of applicant & Co-partner (where applicable) | Copy |
| 2 passport size color Photographs of applicant & Co-partner (where applicable) | Original |
| Undertaking for first time homeowner | Original |
| Proof of allotment, transfer and/or Title Document of the property to be mortgaged | Copy |
| Direct Debit Authority (DDA) & Employer’s certificate mentioning that payroll account maintenance shall continue with the lending Bank (where applicable) | Original |
| In case customer is employed in informal sector, one of the following documents shall be required to assess customer based on proxy income or repayment surrogates, for example:Rent AgreementOR Rent Payment declarationOR Utility BillsOR Telco BillOR School Fee ChallanOR Any other valid expense document (as per defined Income proxy) | Copy Original Copy Copy Copy Copy |
For Informal Income Person
| Loan Application Form (LAF) along with CF Undertaking | Original |
| Product Disclosure Sheet | Original |
| Valid CNIC of both applicant & Co-partner (where applicable) | Copy |
| 2 passport size color Photographs of applicant & Co-partner (where applicable) | Original |
| Direct Debit Authority (DDA) (where applicable) | Original |
| Undertaking for first time homeowner | Original |
| Proof of allotment, transfer and/or Title Document of the property to be mortgaged | Copy |
| Proof of Business (stating ownership and length of business) for example: Partnership DeedOR Bank Certificate for Sole Proprietor / PartnershipOR NTN CertificateOR Rent agreement of officeOR Professional Degree / Diploma &/OR Valid Membership of applicable Professional bodyOR Any other valid acceptable business document verifiable from authority fulfilling minimum business tenor requirement. | Copy Original Copy Copy Copy Copy / Original |
| Income assessment documentAccount Maintenance Letter along with at least recent 6 months Bank Statement Notes: – Maximum of 60 days Bank statement may be accepted – Original Bank statement with bank stamp | Original |
