The decision was approved on the recommendation of the Securities and Exchange Commission of Pakistan (SECP). Officials say the move will improve access to affordable housing finance, particularly for people who have been unable to obtain loans through conventional banks.

NBFCs can now provide housing loans

According to the SECP, Non-Banking Housing Finance Companies and Investment Finance Companies participating in the scheme will be allowed to provide housing loans of up to Rs10 million.

The regulator believes the inclusion of NBFCs will increase competition in the housing finance sector and provide borrowers with more financing options. The newly issued regulatory framework also allows NBFCs to work with banks and other financial institutions to extend housing loans under the scheme.

Relief for people without bank accounts

One of the key features of the revised framework is that citizens who do not maintain traditional bank accounts will also be able to access housing finance under easier conditions.

The government aims to improve financial inclusion by extending mortgage facilities to underserved communities that previously had limited access to formal financing.

Microfinance companies also included

The SECP said microfinance companies have also been brought into the Apna Ghar Program. These companies will be permitted to offer housing loans of up to Rs5 million.

Officials believe this step will benefit low- and middle-income families seeking smaller home financing packages, especially in semi-urban and rural areas.

Low markup for the first 10 years

Under the scheme, eligible applicants will be able to obtain housing loans at a fixed markup rate of just 5 percent for the first 10 years, making home ownership significantly more affordable.

The government hopes the subsidized financing will encourage more families to purchase or construct homes while supporting growth in Pakistan's housing and construction sectors.

Digital network to reach remote areas

The SECP noted that many NBFCs already operate through digital platforms and have a presence in remote and underserved areas. Their inclusion is expected to help deliver housing finance services to communities where access to traditional banking remains limited.

Experts say the broader lending network could increase home financing penetration in Pakistan, where mortgage lending remains low compared with many regional economies.

The regulator has already issued the operational framework for NBFC participation, and the companies can also collaborate with banks and other financial institutions to facilitate financing under the program.