Mera Pakistan Mera Ghar: Government's Rs 1 Crore Home Loan at 5 Percent Fixed Rate — Full Details

The federal government's Mera Pakistan Mera Ghar scheme offers home loans at a fixed 5 percent annual markup rate to Pakistani citizens who do not own a house. This is one of the lowest home financing rates available in the country and is subsidized directly by the government through the State Bank of Pakistan. This guide explains what the scheme offers, who qualifies, and how to apply through participating banks.

Scheme Overview

Feature Details Maximum loan amount Rs. 1,00,00,000 (1 Crore) Markup rate 5 percent fixed per annum Maximum repayment period 20 years Administering authority State Bank of Pakistan Participating banks HBL, UBL, MCB, Meezan Bank, Bank Alfalah and others Purpose Construction or purchase of first home

Eligibility Criteria

  • Pakistani citizen with a valid CNIC
  • Must not own any house or residential property in Pakistan
  • Property being financed must be for personal residential use, not commercial
  • Property size must be within the limits specified by the scheme (up to 250 square yards for construction, up to 5 marla for smaller categories)
  • Applicant must have a verifiable income — formal or informal sector acceptable
  • Must not have any existing housing loan with any bank

How to Apply Through a Participating Bank

  1. Choose a participating bank: The scheme is available through multiple banks. Visit sbp.org.pk for the updated list of participating banks and their branch networks.
  2. Visit the housing finance department: Within each bank, only specific branches or the head office housing finance department processes Mera Pakistan Mera Ghar applications. Confirm with the bank's helpline before visiting.
  3. Submit your application: Fill out the bank's housing finance application form and attach all required documents.
  4. Income and credit assessment: The bank assesses your income, credit history (through ECIB), and the property details.
  5. Property valuation by approved valuator: The bank arranges an independent valuation of the property.
  6. SBP subsidy processing: Once the bank approves the loan, the State Bank of Pakistan provides the subsidy to reduce the rate to 5 percent.

Difference Between Mera Pakistan Mera Ghar and Punjab's Apna Ghar Scheme

Feature Mera Pakistan Mera Ghar (Federal) Apna Ghar Apni Chhat (Punjab) Government level Federal Provincial (Punjab only) Administering body State Bank of Pakistan Bank of Punjab Markup rate 5% fixed Varies — check current rate Available to All Pakistani citizens nationwide Punjab residents only

Frequently Asked Questions

Can I apply for both Mera Pakistan Mera Ghar and the Punjab scheme?

No. You can only apply for one housing loan scheme at a time. Applying for both simultaneously will result in rejection of one or both applications upon cross-verification.

What happens to the subsidy if interest rates rise?

The 5 percent rate is fixed for the duration of your loan under the scheme's terms. If market rates rise, the government continues to cover the difference through the subsidy mechanism. Your installment amount does not change due to market rate movements.