Apni Chhat Apna Ghar Scheme: Check Monthly Installments for Rs 3 Million Loan

The Government of Pakistan has recently launched affordable housing schemes, known as “Wazir-e-Azam Apna Ghar Program” and “Apni Chhat Apna Ghar” to provide low-income people with access to housing loans.

The program aims to ease the financial burden on the middle- and lower-income classes by providing housing loans of up to Rs10 million with flexible installments and mark-up subsidies supported by the government.

Affordable Housing for Low-Income Families

The scheme allows people to apply for loans to buy houses, apartments and plots, or build homes on their own land. The scheme specifically focuses on houses of up to 10 marla and 1,500 square feet flats, catering to middle- and low-income families in Pakistan.

The government has capped the loan at Rs10 million, with borrowers paying a fixed mark-up rate of 5%, well below the market rate.

Subsidy and Flexible Repayment Plan

A significant feature of the initiative is the government’s mark-up subsidy for the initial 10 years. Customers will be charged a fixed 5% rate, while the banks will calculate the financing at one-year KIBOR plus 3% and receive the subsidy from the government.

Financing can be spread over 20 years, enabling borrowers to plan their finances with affordable monthly instalments.

Moreover, there are other benefits provided by the scheme, including:

• No processing fee
• No penalty for early loan repayment

Bank Alfalah Loan Example

A number of banks are offering this scheme, such as Bank Alfalah, which offers flexible housing loans.

For instance Bank Alfalah offers a Rs3 million loan under its scheme with monthly payments depending on the tenure of the loan:

• 10 years: Rs19,799 per month
• 15 years: Rs23,724 per month
• 20 years: Rs31,820 per month

This gives borrowers the option to select a tenure that suits their income.

Boost to Housing Sector

The government’s program is set to stimulate the housing market and make housing affordable for many families. Through low interest rates, long tenure and subsidised loans, the program seeks to address the housing shortage in Pakistan.

The Wazir-e-Azam Apna Ghar Program and Apni Chhat Apna Ghar scheme are a big step towards affordable housing in Pakistan. These schemes offer loans ranging from Rs1 million to Rs10 million at low rates of mark-up and flexible repayment periods, making home ownership more accessible to low-income families.