Govt Allows Non-Banking Companies to House Loan to Enhance Housing Access
ISLAMABAD: Access to subsidized housing finance is set to widen significantly after the government’s approval to bring Non-Banking Finance Companies (NBFCs) into the Prime Minister’s Apna Ghar Program.
SECP’s Proactive Role The Securities and Exchange Commission of Pakistan proposed the inclusion to leverage NBFCs’ potential. The decision will enhance availability of housing loans and strengthen non-bank players in the sector.
Housing finance companies and investment finance companies can extend loans up to PKR 10 million, while microfinance companies will offer up to PKR 5 million.
Focus on Underserved Segments NBFCs are known for reaching customers traditional banks often miss. Their flexible financing and customer-centric approach are expected to accelerate home ownership among middle and lower-income groups.
Key Features of the Scheme Loans under the program can extend to 20 years with a subsidized 5% mark-up for the initial 10 years. The government provides mark-up subsidy and risk coverage.
SECP has rolled out detailed guidelines covering eligibility, procedures, prudential norms, and monitoring. NBFCs can lend directly or collaborate with other institutions for effective implementation.
This development marks a milestone in financial inclusion. It supports the broader goal of providing affordable housing solutions to more Pakistani families.
