Apna Ghar Programme: 1,845 beneficiaries get loans more than Rs5bn

ISLAMABAD – The federal government has disbursed more than Rs5 billion in subsidised loans to 1,845 beneficiaries under the Prime Minister’s Apna Ghar Programme, the National Assembly Standing Committee on Finance was informed on Thursday. During a briefing to the committee, the officials said the government planned to facilitate the construction of 500,000 houses over the next four years through concessional housing loans. The committee was told that 25,304 applications had been received under the scheme so far, of which 8,990 had been approved. The total value of the approved loans exceeds Rs37 billion. Federal Secretary Finance, Secretary Housing and Works and Secretary Law and Justice briefed lawmakers on the implementation framework of the Prime Minister’s Apna Ghar Programme and proposed reforms in housing finance and foreclosure laws. Secretary Housing and Works informed the committee that the scheme was designed to support first-time home buyers through subsidised financing. Under the programme, applicants can obtain loans of up to Rs10 million at a fixed markup rate of five per cent. Officials said the repayment period had been set at 20 years, while the financing ratio would remain 90:10. The Ministry of Housing and Works told the committee that reforms in foreclosure and recovery laws were necessary to address banks’ concerns, improve investor confidence and promote sustainable growth in the mortgage finance sector. The committee observed that Pakistan’s housing finance sector remained significantly underdeveloped and stressed the need for structural reforms, improved foreclosure laws and a more supportive regulatory framework to encourage banks and financial institutions to expand mortgage lending. How to apply for ‘Apna Ghar Programme’ housing loan scheme?