Mera Ghar Mera Pakistan Scheme Making Home ownership

Mera Pakistan Mera Ghar (MPMG) scheme is a landmark initiative by the Government of Pakistan aimed at helping low and middle-income citizens become homeowners through affordable financing options. Mera Ghar Mera Pakistan Scheme.

Introduced to address the housing shortfall, this scheme offers subsidized home loans, allowing individuals and families to build, purchase, or renovate homes at manageable costs. With the rising housing demand, this scheme provides a much-needed pathway to homeownership.

Available through both conventional and Islamic banking models, the scheme has been designed with a focus on low-cost housing solutions. Various banks in Pakistan participate in this program, providing loans for a wide range of housing needs, including construction and purchase of new homes.

Financing can range up to PKR 10 million, and it is targeted at making homeownership accessible for first-time buyers from low to middle-income backgrounds.

Key Features of the Mera Pakistan Mera Ghar Scheme

1. Loan Tiers and Amounts: The scheme operates through four credit tiers:
   • Tier 0: Up to PKR 2 million for homes up to 125 square yards or flats up to 1,250 sq. ft.
   • Tier 1 (NAPHDA projects): Up to PKR 2.7 million for homes up to 125 square yards or flats up to 850 sq. ft.
   • Tier 2: Loans up to PKR 6 million.
   • Tier 3: Loans up to PKR 10 million for larger housing units.
2. Interest Rates: Subsidized interest rates make the loans affordable:
   • For Tier 0 and Tier 2, the rate starts at 5% for the first 5 years and increases to 7% thereafter.
   • Tier 1 offers the lowest rates, starting at 2% for the first 5 years for NAPHDA-approved projects.
   • For Tier 3, rates begin at 7% and increase to 9% after 5 years.
3. Eligibility:
   • Pakistani citizens with a valid CNIC are eligible.
   • The applicant must be a first-time homeowner.
   • Land purchases are allowed, provided the land is used for home construction and not as an investment.
4. Loan Tenure: Loans are available for terms of up to 20 years, with a minimum tenure of 5 years. This flexibility allows individuals to manage repayments based on their financial circumstances.
5. Repayment and Grace Period: A grace period of up to 15 months is available for construction loans, providing borrowers time to start construction before regular repayments kick in.

Why Mera Ghar Mera Pakistan is a Game-Changer

The Mera Pakistan Mera Ghar Scheme offers unique benefits not seen in previous housing schemes. The government’s decision to include low markup rates for Tier 1 and the option to extend loan tenures significantly reduces the financial burden for borrowers. It also prioritizes NAPHDA low-cost housing projects, ensuring the scheme reaches the most vulnerable sections of society.

Frequently Asked Questions (FAQ)

1. Can I apply for a loan for house renovation? Yes, loans under the MPMG scheme can be used for house construction, purchase, or renovation, depending on the applicant’s needs.
2. Are there any limitations on the property size? Yes, depending on the tier, there are property size limits. For example, in Tier 1, homes up to 125 sq. yards are eligible, while Tier 3 allows for homes up to 250 sq. yards.
3. Can I apply for this scheme if I already own a house? No, the scheme is aimed at first-time homeowners only.
4. What if my loan application was approved but the scheme was temporarily suspended? The government has assured that all previously approved loan applications remain valid and protected even during suspensions​.

By leveraging the Mera Pakistan Mera Ghar scheme, you can finally achieve your dream of owning a home in Pakistan, with reduced financial stress and easy access to affordable financing options.