The government has approved important changes to its affordable housing loan programme to support homeownership across Pakistan. Officials say the revised scheme will make it easier for thousands of families to purchase or construct their own homes.

Under the updated plan, individuals can get home loans of up to Rs10 million. These loans will help people either buy an existing house or build a new one, especially supporting middle- and lower-income families who often struggle to arrange funds for housing.

Officials said the changes are part of broader efforts to improve access to affordable housing in the country. By expanding loan facilities, the government hopes more citizens will be able to own homes instead of living in rented houses.

The scheme offers a low interest rate of 5% for borrowers. In addition, the maximum repayment period has been fixed at 20 years, allowing people to repay the loan in small and manageable installments over a long time.

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The government has set a target to finance 500,000 houses within the next four years. In the first year alone, loans are expected to be provided for around 50,000 houses, marking the initial phase of the programme.

Officials believe the initiative will not only help families achieve their dream of homeownership but will also encourage construction activity and housing development across Pakistan.

To make the programme possible, the government will provide a subsidy of nearly Rs321 billion. This support will help maintain the low interest rate and ensure the scheme remains affordable for eligible borrowers.

Both commercial banks and Islamic banks will participate in the housing finance programme, allowing more people to access loans through different financial institutions.

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The scheme will be implemented jointly by the State Bank of Pakistan and the Ministry of Housing to ensure proper monitoring and smooth execution.

Officials say the partnership between the government and banking sector could significantly expand access to housing finance in Pakistan and help many families secure their own homes.

Affordable housing is a major challenge in Pakistan. Low interest rates, long repayment periods, and government subsidy can help more families buy homes. The scheme’s success will depend on how easily people can actually obtain these loans from banks.