Govt Launches Rs3.5m Loan Scheme for 5 Marla Houses – ‘Mera Ghar Mera Ashiana’ Explained
ISLAMABAD, Sept 25, 2025 – The federal government has officially rolled out the “Mera Ghar Mera Ashiana” housing finance scheme, a program that promises to make home ownership possible for low- and middle-income families across Pakistan. Under the initiative, citizens can now access loans of up to Rs3.5 million to purchase, construct, or finance their very first home.
This marks a turning point in Pakistan’s housing sector, where rising property costs have kept millions from owning a house. With long-term financing, low markup, and zero hidden charges, the scheme is designed to bridge the gap between dream and reality for first-time buyers.
Why the Scheme Was Needed
Pakistan faces a severe housing shortage—estimated at nearly 10 million units. Property prices have skyrocketed over the last decade, leaving even middle-class families unable to buy or build their own homes. Most mortgages available through commercial banks have been short-term, high markup, and restrictive.
The Mera Ghar Mera Ashiana Scheme 2025 is meant to reverse this cycle. By making financing accessible, affordable, and long-term, the government aims to:
- Reduce the national housing deficit.
- Provide relief to salaried and working-class families.
- Boost the construction and allied industries.
- Create jobs and stimulate economic growth.
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Key Features at a Glance
The scheme operates under the Markup Subsidy and Risk Sharing Program, supervised by the State Bank of Pakistan (SBP).
- Loan Limit: Up to Rs3.5 million.
- Tenure: Maximum 20 years, with subsidies for the first 10.
- Markup: One-Year KIBOR + 3% (much lower than traditional rates).
- Processing Fee: Zero – banks cannot add hidden charges.
- Prepayment: No penalty for paying back early.
- Risk Coverage: 10% of the outstanding loan secured by the government.
- Loan-to-Value Ratio: 90:10 (bank covers 90%, borrower contributes 10%).
This structure ensures loans are affordable, fair, and flexible—a rarity in Pakistan’s mortgage market.
Eligibility Criteria
The scheme is specifically designed for first-time homeowners. Applicants must:
- Be Pakistani citizens with valid CNICs.
- Not own any housing unit in their name.
- Apply only for their first home purchase or construction.
This keeps the scheme from being exploited by investors and ensures it supports families who truly need housing.
What the Loan Covers
Borrowers have several options for how to use their loan:
- Purchase of a 5 Marla house.
- Purchase of an apartment (up to 1,360 sq. ft.).
- Construction on an already owned plot.
- Purchase of a plot with construction on it.
This flexibility is crucial. It allows participation from both urban apartment buyers and rural families building small homes.
Loan Tiers for Affordability
The SBP has divided the scheme into two tiers:
- Tier 1: Loans up to Rs2 million.
- Tier 2: Loans above Rs2 million and up to Rs3.5 million.
This ensures that applicants can choose financing based on their income and repayment capacity, without being locked into one fixed model.
Where to Apply
The scheme has been rolled out through all major banks, including:
- Commercial banks.
- Islamic banks.
- Microfinance institutions (MFBs).
- House Building Finance Corporation (HBFCL).
Applicants can walk into their nearest branch with the required documents, or soon apply digitally as banks expand online facilities.
Why It’s Different from Past Housing Programs
In the past, housing schemes were criticized for:
- High interest rates that discouraged borrowers.
- Hidden fees like processing charges.
- Short repayment timelines that made installments unaffordable.
- Complicated paperwork that excluded the working class.
The Mera Ghar Mera Ashiana Scheme 2025 changes this by offering:
- 20-year repayment periods.
- No penalties or hidden charges.
- Government-backed risk coverage.
- Simplified eligibility rules.
This is why experts are calling it Pakistan’s first truly people-centered housing program.
Impact on Families and Society
The program is expected to transform lives nationwide:
- Families stuck in rental cycles will finally become homeowners.
- Young professionals can invest in property early without massive savings.
- Rural families will gain access to modern housing loans for the first time.
- Women applicants will find it easier to apply with clear guidelines and no hidden conditions.
Beyond individuals, the scheme will energize Pakistan’s economy, driving demand in construction, furniture, and local supply chains.
Voices from the Public
The announcement has generated excitement:
- Ahmed from Lahore, a schoolteacher: “Paying rent for 15 years feels like throwing money away. This scheme gives me a chance to finally own my own house.”
- Shazia from Faisalabad, a single mother: “Banks never made housing loans easy for women. This program has changed that for me.”
- Zeeshan from Karachi, a young IT worker: “With a 20-year plan, installments become manageable. It’s the only way I can think of building my home.”
These voices reflect how the scheme is touching lives even before its full rollout.
Expert Take
Economists believe the program could:
- Narrow the housing deficit by at least 1 million units over five years.
- Generate jobs in construction and allied sectors.
- Increase banking penetration among low-income households.
- Reduce reliance on black money-driven property investments.
However, experts also caution that inflation in construction materials could erode affordability unless the government keeps prices stable.
Challenges Ahead
No program is without risks. The success of the scheme depends on:
- Banks processing loans efficiently and fairly.
- Widespread awareness campaigns so citizens know how to apply.
- Preventing misuse by wealthy investors disguising as first-time buyers.
- Maintaining stable construction costs.
The government has promised strict monitoring, digital transparency tools, and grievance redressal systems to overcome these hurdles.
Bigger Picture – A Step Toward Housing Security
Housing is not just about shelter—it’s about dignity, stability, and future security. With the Mera Ghar Mera Ashiana Scheme, the government is signaling a shift toward long-term social investment, not just short-term subsidies.
If implemented properly, this could become a model program for South Asia, proving that even developing economies can deliver affordable housing for ordinary citizens.
Conclusion – A Golden Opportunity
The Rs3.5 million loan for 5 Marla houses under the Mera Ghar Mera Ashiana Scheme 2025 is more than a policy—it’s a lifeline for Pakistan’s working and middle classes.
With 20-year repayment plans, subsidized markup, and zero hidden charges, the program removes the barriers that have kept millions from owning homes. It also promises to energize the construction sector and boost economic growth.
For families across Pakistan, this may be the first real chance to say: “This is my home.”
