Mera Pakistan Mera Ghar (MPMG), Housing Finance Program for Affordable Housing
Mera Pakistan Mera Ghar is a housing finance scheme launched by the Government of Pakistan in collaboration with the State Bank of Pakistan (SBP) and the Naya Pakistan Housing and Development Authority (NAPHDA) in 2020. This scheme aims to provide affordable and subsidized financing for the purchase, construction, or extension of houses for low to middle-income segments of the population. The scheme is part of the government’s vision to increase the availability of adequate housing in the country and boost economic activities in the construction sector and its allied industries.
Under this scheme, eligible borrowers can avail financing from any participating bank or financial institution at very low markup rates depending on the size and type of the housing unit. The financing tenor can be from 5 to 20 years as per the borrower’s choice. The maximum financing amount is Rs. 10 million for non-NAPHDA projects and Rs. 2.7 million for NAPHDA projects. The scheme covers houses measuring up to 125 square yards (5 marlas) with a maximum covered area of 850 square feet, flats/apartments with a maximum covered area of 850 square feet, and plots with construction thereupon.
The scheme is open to all Pakistani citizens holding valid CNIC or NICOP who are first-time house owners. One individual can have a subsidized house loan facility under this scheme only once. For NAPHDA projects, NAPHDA will shortlist the eligible candidates and forward their profiles to banks for financing upon their request. The borrowers will have to pay a minimum equity contribution of 10% of the value of the housing unit.
The scheme has been designed to facilitate the provision of housing finance by banks and financial institutions by offering them various incentives and relaxations. These include separate prudential regulations for housing finance, mandatory targets for housing and construction finance, incentives or penalty on mandatory targets for housing finance, risk coverage facility by the government for low-cost housing loans, and facilitation desks by SBP in its offices across the country.
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3 Comments
Home Page, Admin Good article.
Home Page, Admin Excellent, this is just what I needed
Any update on relaunch of this scheme again. Can someone guide on this.