NBFCs included in PM’s apna ghar programme to expand affordable housing finance

The federal government has approved the inclusion of lending Non-Banking Finance Companies (NBFCs) in the Prime Minister’s Apna Ghar Programme

The federal government has approved the inclusion of lending Non-Banking Finance Companies (NBFCs) in the Prime Minister’s Apna Ghar Programme, a move aimed at increasing access to affordable housing finance for people who have limited or no access to traditional banking services.

The decision, announced by the Securities and Exchange Commission of Pakistan (SECP), is expected to broaden the range of financial institutions participating in the government’s subsidised housing scheme, enabling more citizens to secure financing for their first homes.

The Prime Minister’s Apna Ghar Programme was launched earlier this year by Prime Minister Shehbaz Sharif as part of a five-year initiative worth Rs3.2 trillion. The programme aims to support the construction of 500,000 housing units across Pakistan while improving homeownership opportunities for low- and middle-income families.

Under the latest decision, eligible NBFCs will now be able to participate in the scheme as Participating Financial Institutions (PFIs), allowing them to offer subsidised housing loans alongside commercial banks and other financial institutions.

According to the SECP, the proposal to include NBFCs was made after recognising their ability to expand housing finance and improve financial inclusion, particularly for individuals who remain underserved by the conventional banking sector.

The regulator said the move would not only increase the availability of housing loans but also strengthen the contribution of NBFCs to Pakistan’s financial system by giving them a larger role in supporting affordable housing initiatives.

Under the revised framework, eligible non-banking housing finance companies and investment finance companies will be authorised to provide home loans of up to Rs10 million. Meanwhile, microfinance companies participating in the programme will be able to offer financing of up to Rs5 million, helping lower-income households gain access to homeownership opportunities.

The SECP believes the wider outreach and flexible financing models offered by NBFCs will make it easier for more families, particularly those outside the formal banking network, to obtain housing finance. Their presence is expected to complement existing financial institutions and extend housing credit to communities that have traditionally faced difficulties accessing mortgage financing.

The Apna Ghar Programme is designed to promote affordable housing through government-backed mark-up subsidies and risk-sharing mechanisms. Under the scheme, eligible first-time homebuyers can obtain financing with repayment periods of up to 20 years. Borrowers will also benefit from a subsidised mark-up rate of 5 per cent during the first 10 years of the loan, making monthly repayments more affordable.

To ensure the programme operates effectively, the SECP has introduced a comprehensive regulatory framework governing the participation of NBFCs. The framework allows eligible companies to provide housing finance using their own financial resources or in collaboration with commercial banks, development finance institutions and other NBFCs.

In addition, the regulator has issued detailed operational guidelines covering eligibility requirements, lending procedures, prudential standards and monitoring mechanisms. These measures are intended to ensure responsible lending practices while maintaining the long-term sustainability of the housing finance programme.

The SECP has formally notified housing finance companies and other eligible NBFCs of their participation in the Prime Minister’s Apna Ghar Programme. The development is expected to provide aspiring homeowners with more financing options and help accelerate the government’s efforts to address Pakistan’s housing shortage while promoting greater financial inclusion across the country.