The Government of Pakistan, in collaboration with the State Bank of Pakistan (SBP) and financial institutions, has launched a landmark initiative called “Mera Ghar – Mera Ashiana”. This is a Markup Subsidy and Risk Sharing Scheme designed to make affordable housing finance accessible to Pakistani citizens who do not yet own a home.
As housing prices continue to rise and home ownership becomes increasingly difficult for middle and lower-income families, this scheme provides an opportunity for first-time homeowners to purchase, construct, or build houses and flats at subsidized financing rates.
In this article, we will provide a complete guide to the Mera Ghar – Mera Ashiana Scheme 2025, including eligibility, financing tiers, loan structure, benefits, application process, and frequently asked questions.
Background of the Scheme
Housing is one of the most pressing challenges in Pakistan, with millions of families living in rented accommodations or substandard housing. The gap between income levels and real estate prices has widened, making it nearly impossible for an average citizen to buy their own house.
To address this challenge, the Government of Pakistan introduced the Mera Ghar – Mera Ashiana Scheme in 2025. The objective is to:
Promote financial inclusion by involving all banks, Islamic banks, microfinance banks (MFBs), and the House Building Finance Company Limited (HBFCL).
Encourage low and middle-income families to access housing loans.
Provide markup subsidies and risk-sharing mechanisms to reduce the burden on customers and banks.
Support the construction sector, which is directly linked to more than 40 industries, creating jobs and stimulating economic growth.
Key Features of Mera Ghar – Mera Ashiana Scheme 2025
The scheme comes with a clear framework to ensure accessibility, affordability, and risk coverage for banks and customers alike.
1. Eligibility Criteria
Applicants must be first-time homeowners.
Must be a Pakistani citizen with a valid CNIC.
The applicant should not already own a house or flat in their name.
2. Scope of the Scheme
Purchase of a house or flat.
Construction of a house on an already owned plot.
Purchase of a plot and construction of house on it.
3. Size of Housing Unit Allowed
Houses of up to 5 Marla.
Flats/Apartments of up to 1360 sq. ft..
4. Loan Size Tiers
Tier 1 (T1): Up to PKR 2 million.
Tier 2 (T2): Above PKR 2 million and up to PKR 3.5 million.
5. Loan Tenure
Maximum loan period: 20 years.
Subsidy applicable for the first 10 years.
6. Markup Rates
Tier 1 Customers: 5% fixed.
Tier 2 Customers: 8% fixed.
This fixed pricing ensures stability and predictability for borrowers.
7. Bank Pricing
One Year KIBOR + 3% for banks.
Subsidy provided by the government to keep customer pricing fixed.
8. Charges for Customers
No processing fees.
No prepayment penalty.
9. Loan to Value (LTV) Ratio
90:10 ratio (90% loan from bank and 10% equity contribution from customer).
10. Risk Coverage
10% portfolio risk coverage on first loss basis, provided by the government.
Benefits of the Scheme
The Mera Ghar – Mera Ashiana Scheme 2025 provides multiple advantages for both customers and banks:
For Citizens
Affordable financing with low markup rates (5% and 8%).
Long repayment period of 20 years, reducing monthly installment burden.
Opportunity for first-time homeowners to secure property.
No hidden charges, processing fees, or prepayment penalties.
For Banks & Institutions
Risk coverage by the government reduces financial exposure.
Expansion in the housing finance portfolio.
Support for national housing goals, contributing to financial inclusion.
For the Economy
Boosts the construction industry.
Creates employment opportunities.
Stimulates demand in allied industries (cement, steel, tiles, furniture, etc.).
How to Apply for Mera Ghar – Mera Ashiana Scheme
Applying for the scheme is straightforward. Citizens can approach any participating financial institution.
Step-by-Step Application Process:
Visit a commercial bank, Islamic bank, microfinance bank, or HBFCL branch.
Request the Mera Ghar – Mera Ashiana housing finance application form.
Submit required documents:
Copy of CNIC.
Proof of income/salary slips or business documents.
Property documents (sale deed, plot papers, or construction plan).
Recent passport-size photographs.
The bank will conduct verification and credit assessment.
Once approved, the loan will be disbursed under the defined scheme rules.
Documents Required
Applicants must provide the following:
CNIC of applicant and co-borrower (if any).
Proof of not owning another house (bank verification may apply).
Property documents (in case of construction or purchase).
Proof of income (salary slip, employment certificate, or business proof).
Utility bills for address verification.
Example of Loan Repayment
For better understanding, let’s take an example:
Loan amount: PKR 2,000,000 (Tier 1).
Tenure: 20 years.
Markup rate: 5% fixed.
Monthly installment: Approximately PKR 13,200.
This is significantly lower than conventional market housing finance rates, making home ownership affordable.
Challenges and Risk Management
While the scheme offers numerous benefits, certain challenges must be addressed:
Awareness: Many citizens in smaller towns remain unaware of the scheme.
Documentation barriers: Low-income groups often face difficulties in providing income proofs.
Implementation checks: Risk of misuse if monitoring is weak.
To overcome these, SBP has advised banks to ensure proper dissemination, training, and monitoring mechanisms.
Long-Term Impact of Mera Ghar – Mera Ashiana
The scheme has the potential to:
Reduce the housing deficit in Pakistan.
Empower low-income families by granting them asset ownership.
Increase urban development through structured housing.
Contribute to poverty alleviation by ensuring secure housing.
Frequently Asked Questions (FAQs)
Q1. Who can apply for Mera Ghar – Mera Ashiana Scheme?
Any Pakistani citizen with a valid CNIC who does not already own a house or flat can apply.
Q2. Which banks are participating?
All commercial banks, Islamic banks, microfinance banks (MFBs), and HBFCL.
Q3. What is the maximum loan amount?
Up to PKR 3.5 million depending on the tier.
Q4. How long is the repayment period?
The loan tenure is up to 20 years, with subsidy applicable for 10 years.
Q5. Is there any penalty for early repayment?
No, there is no prepayment penalty.
Q6. What if the borrower defaults?
The government provides 10% risk coverage to banks under the scheme, but borrowers may face legal consequences as per banking laws.
Q7. Can overseas Pakistanis apply?
Currently, the scheme is designed for resident Pakistanis, but future extensions may include overseas citizens.
Conclusion
The Mera Ghar – Mera Ashiana Scheme 2025 is a bold and progressive step towards addressing Pakistan’s housing shortage. By offering low markup financing, risk coverage, and easy loan terms, it creates opportunities for thousands of families to become first-time homeowners.
With its long-term repayment flexibility, government subsidies, and no hidden charges, the scheme is highly beneficial for citizens who dream of owning their own homes. If implemented effectively, it can transform Pakistan’s housing sector, construction industry, and overall economy.
👉 If you are a first-time homebuyer in Pakistan, this scheme provides the perfect chance to secure a home for your family under affordable financing terms.
