Rs3.5 Million Loan for 5 Marla House – All You Need to Know About ‘Mera Ghar Mera Ashiana’ Scheme

ISLAMABAD (25 September 2025): The federal government has officially launched the “Mera Ghar – Mera Ashiana” housing finance scheme, offering citizens affordable loans of up to Rs3.5 million to build or purchase their first home. The initiative, introduced under the Markup Subsidy and Risk Sharing Scheme, is designed to make home ownership easier for low- and middle-income families across Pakistan.

Key Features of Mera Ghar – Mera Ashiana Scheme

The State Bank of Pakistan (SBP) has issued clear guidelines to ensure maximum accessibility. Here are the highlights:

• Loan Amount: Up to Rs3.5 million depending on eligibility.

• Loan Tenure: Maximum of 20 years, with subsidy available for the first 10 years.

• Markup Rate: One Year KIBOR + 3%, significantly lower than conventional housing loans.

• Processing Fee: No bank processing charges.

• Prepayment: No penalty for early repayment.

• Risk Coverage: 10% of the outstanding portfolio covered under first-loss basis.

• Loan-to-Value Ratio: 90:10 (90% bank financing, 10% equity contribution).

Eligibility Criteria

To make the scheme inclusive, the government has kept requirements straightforward:

• Applicants must be Pakistani citizens with valid CNICs.

• The scheme is available only for first-time homebuyers.

• The applicant must not own any housing unit in their name.

What the Loan Can Be Used For

Beneficiaries can apply for financing in multiple categories, including:

• Purchase of a 5 Marla house.

• Purchase of a flat/apartment up to 1,360 sq. ft.

• Construction of a house on an already owned plot.

• Purchase of a plot and construction on it.

This flexibility ensures that different segments of society—urban families, rural homeowners, and young professionals—can all benefit.

Loan Tiers

The SBP has divided the scheme into two financing tiers:

1. Tier 1: Loans up to Rs2 million.

2. Tier 2: Loans above Rs2 million and up to Rs3.5 million.

This tier system gives applicants the option to select financing as per their needs and affordability.

Where to Apply

All commercial banks, Islamic banks, microfinance banks (MFBs), and House Building Finance Corporation (HBFCL) have been directed to roll out the scheme through their branches. Applicants can apply directly at their nearest branch with the required documents.

Why It Matters

The Mera Ghar – Mera Ashiana scheme is a major step towards addressing Pakistan’s housing shortage, particularly for middle-income families who struggle with rising real estate prices. By providing long-term financing with low markup rates and risk coverage, the government aims to:

• Promote affordable housing.

• Encourage first-time buyers to invest in property.

• Support the construction sector, boosting economic activity and job creation.

Final Words

The Rs3.5 million loan for 5 Marla houses under Mera Ghar – Mera Ashiana scheme is a much-needed relief for Pakistanis dreaming of owning their first home. With simplified eligibility, no hidden bank charges, and a 20-year repayment plan, the scheme is expected to attract thousands of applicants nationwide.

For those planning to build or buy a home, this program offers a golden opportunity to turn that dream into reality.