Regulatory Alerts2025-09-24 | SH&SFD Circular No. 03 of 2025Added · Updated
Mera Ghar - Mera Ashiana Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance
The Government of Pakistan introduces the Mera Ghar - Mera Ashiana Markup Subsidy and Risk Sharing Scheme to promote affordable housing finance. Eligible first-time homeowners can obtain loans up to PKR 3.5 Million with a maximum tenor of 20 years, subject to specific housing unit size limits and a 90:10 Loan to Value ratio. Participating financial institutions must apply a customer fixed pricing of 5% for Tier 1 loans and 8% for Tier 2 loans, while bearing no processing costs or prepayment penalties. The scheme includes a risk coverage mechanism where financial institutions assume 10% of the outstanding portfolio on a first-loss basis.
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SH&SFD Circular No. 03
Mera Ghar - Mera Ashiana Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance
September 24, 2025
563
The Presidents/Chief Executives
All Banks/HBFCL/MFBs
Dear Sir/Madam,
Mera Ghar - Mera Ashiana Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance
With a view to promote affordable housing finance, the Government of Pakistan has introduced a Markup Subsidy and Risk Sharing Scheme namely ‘Mera Ghar - Mera Ashiana’. The key features of the scheme are given below:
Parameters
Features
Eligibility Criteria
First time homeowners citizens of Pakistan holding CNICs. Not owning any housing unit in their name
Scope
Purchase of house/flat Construction of house on already owned plot Purchase of plot and construction of house
Size of Housing Unit
House of up to 5 Marla Flat/Apartment of up to 1360 sq. ft. area
Participating Financial Institutions (PFIs)
All commercial banks, Islamic banks, MFBs and HBFCL
Maximum Loan size
T1 = Up to PKR 2.0 Million T2 = Above PKR 2.0 Million and up to PKR 3.5 Million
Maximum Loan Tenor
20 years (subsidy for 10 years)
Bank Pricing
One Year KIBOR + 3%
Customer/end user fixed pricing
Tier 1: 5% Tier 2: 8%
Bank Charges
No processing cost No prepayment penalty
Loan to Value (LTV) Ratio
90:10 (90% loan & 10% equity)
Risk Coverage
10% of the outstanding portfolio under the scheme on first loss basis
The PFIs are advised to take necessary measures for proper dissemination of scheme through their branch network and other means. PFIs are further advised to gear up their systems for successful implementation of the scheme and to avoid any misuse of the scheme.
The mechanism for payment of markup and credit loss subsidy will be communicated in due course.
Please acknowledge the receipt.
Yours sincerely,
Najm us Saqib Shabbir Additional Director
Home — Circulars — SH&SFD Circular No. 03
Mera Ghar - Mera Ashiana Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance
September 24, 2025