How to Apply for Mera Ghar Mera Ashiana Housing Loan

What Is Mera Ghar Mera Ashiana

Mera Ghar Mera Ashiana is a new subsidised housing finance scheme launched by the Government of Pakistan through the State Bank to help first-time homebuyers build or purchase affordable homes. The scheme offers low markup and long repayment periods, aiming to make home ownership possible for middle and lower income families. 

Under this scheme, eligible applicants can:

• Purchase a ready house or flat
• Construct a house on an already owned plot
• Purchase a plot and then construct a house on it 

The scheme has limits: houses up to 5 marla or flats up to 1,360 square feet are eligible. 

Loan amounts are split into two tiers:

• Tier-1: up to PKR 2.0 million at a fixed markup of 5% (for end user) 
• Tier-2: above PKR 2.0 million up to PKR 3.5 million at a fixed markup of 8% 

The maximum tenure is 20 years, with markup subsidy for the first 10 years. 

Key other features: no processing cost, no prepayment penalty, 90:10 loan-to-value (LTV) ratio (i.e. borrower contributes 10%) and government risk coverage of 10% on the outstanding portfolio. 

What You Must Check First

Who Is Eligible

Before you begin, make sure you meet these criteria:

• Pakistani citizen with valid CNIC (National Identity Card) 
• You must be a first-time homeowner (i.e. you should not own any housing unit in your name) 
• The property you wish to finance must conform (house up to 5 marla or flat up to 1,360 sq ft) 
• Your plan must be purchase, construction, or plot + construction (you can’t use it for luxury or unrelated properties) 
• You must be able to show proof of income and ability to repay according to bank rules (this is standard banking requirement)

If any one of these fails, your application may be rejected. So start by confirming your eligibility.

Which Banks Participate

Because the scheme is launched via SBP, many banks and financial institutions are participating:

• All commercial banks in Pakistan 
• Islamic banks 
• Microfinance Banks (MFBs) 
• House Building Finance Company Limited (HBFCL)

You should check your local branch of these banks whether they are accepting applications under this scheme.

You Can Also Read : How to Check If You Are Eligible for BISP 8171 Payment Online

Step by Step Application Process

Below is a sequential guide on how to go through the process.

Step 1: Visit a Participating Bank Branch

Go to the nearest branch of a bank that is part of the scheme (as listed above). When you go, tell the branch you want to apply for the Mera Ghar Mera Ashiana housing loan. The staff should provide you with the scheme’s application form.

Make sure you carry your CNIC and basic papers, so the bank official can guide you on what else you need.

Step 2: Fill the Application Form

You will need to fill a housing finance application form (marked as for Mera Ghar Mera Ashiana). In this form you will give details: your name, CNIC, address, employment or business, family details, desired property (house/flat/plot + construction), cost estimates, etc. Be honest and complete.

At this stage, the bank may also ask preliminary questions about how much you can pay monthly, what property you want, and your income sources.

Step 3: Submit Required Documents

Once the form is filled, you will need to submit certain documents. The bank will give you the list. Commonly, you will need:

• Copy of CNIC (front & back)
• Proof of income (salary slips, business documents, bank statements)
• Photographs (passport size)
• Property documents (if you are purchasing an existing house/flat)
• Ownership or title documents (for plot)
• Construction plan and cost estimate (if building)
• No objection certificate (if needed)
• Any other bank-specific documents

The bank will verify your identity, income, and that you do not own any other house.

Step 4: Bank Review & Eligibility Check

After you submit, the bank’s credit/finance department will check your application. They will check:

• Your eligibility under scheme (first time, no prior property)
• Whether property qualifies (size, location, cost)
• Your repayment capacity (do you earn enough)
• Whether your documents are correct

This might take some days (often 1 to 2 weeks, depending on bank and backlog). They may ask you to clarify or submit additional papers.

Step 5: Approval & Offer Letter

If the bank approves, they will issue an offer letter or sanction letter stating the approved loan amount, interest (markup) rate, tenure, monthly installment, conditions, etc. Read it carefully. Make sure it is under Mera Ghar Mera Ashiana terms (5% or 8%, no extra processing, etc.).

You may need to sign the letter and meet certain formalities (guarantee, co-signature, etc).

Step 6: Disbursement of Loan

Once everything is signed and satisfied, the bank disburses the loan. The funds can go:

• To seller (if buying a house/flat)
• To your contractor / supplier (if you’re constructing)
• In a phased manner as construction progresses

You start paying monthly installments as per schedule. For the first 10 years, the government subsidy on markup will apply, so you pay the subsidized rate (5% or 8%). 

Step 7: Repayment & Monitoring

You pay monthly installments. The bank will monitor your payments. Also, the bank may monitor how the loan is used (especially for construction). Make sure you maintain records, receipts, and comply with bank’s reporting (as they may request proof of construction progress).

After 10 years, you may have to pay full markup (if subsidy ends) as per agreement.

You Can Also Read : Check Your BISP PMT Score by CNIC Easy Method

Required Documents 

Here is a bullet-list summary you can use as checklist:

• CNIC copy (front & back)
• Passport size photographs
• Proof of income: salary slips, business accounts, bank statements
• Property documents / title deed / sale agreement
• Approved construction plan & cost estimate (if building)
• Ownership documents for plot (if purchasing plot)
• No objection certificates (if required)
• Additional bank forms (guarantor, co-signer)

Always check with the specific bank, because some may ask for extra documents like utility bills, tax returns, etc.

Key Terms, Rates & Conditions

It is helpful to understand the financial terms, so you aren’t surprised.

Knowing these ensures you aren’t tricked by a bank charging extra.

Common Mistakes & Tips

• Don’t assume every branch has this scheme  ask specifically for Mera Ghar Mera Ashiana
• Double-check all your documents before submission to avoid delays
• In construction, make sure plans are approved and aligned with bank’s expectations
• Keep track of disbursements especially if they come in phases
• Save receipts, invoices, and progress reports bank may ask for proof
• Don’t miss monthly payments late payments may cause penalties or loss of benefit
• Ask the bank in your area whether subsidy mechanism (government paying difference) is working smoothly.

You Can Also Read : How to Apply for Benazir Taleemi Wazaif

FAQs

Can someone who already owns a house apply?
No. One of the eligibility criteria is that the applicant must not own any housing unit in his/her name. This scheme is ONLY for first-time homebuyers.

What if I pay off early will there be a penalty?
No. Under Mera Ghar Mera Ashiana, banks are not allowed to impose prepayment penalties. You can repay early without extra cost. 

After 10 years, what happens to the markup subsidy?
After the subsidy period (10 years) ends, you will have to pay the markup agreed in your contract (5% or 8%) for the remaining tenure. Be sure to see your loan agreement.

Will the scheme cover luxury homes or large plots?
No. The scheme is restricted to houses up to 5 marla or flats up to 1,360 sq ft. Luxury or large homes or plots beyond that are not eligible.

Conclusion

If you qualify, Mera Ghar Mera Ashiana is a golden chance to step into your own home with reasonable monthly payments and a long timeline. Start by visiting a bank branch, checking eligibility, gathering documents, and following the process above. Don’t wait to apply as soon as you can to take advantage of this scheme before resources run out.

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