Apni Chhat Apna Ghar scheme has entered a new phase as Punjab government approved a digital model to issue interest-free housing loans.

Under the new system, the Bank of Punjab (BOP) will directly provide interest-free housing loans for the first time. The initiative aims to support construction of 40,000 low-cost homes through loans worth Rs 60 billion.

Officials said the entire loan process will be fully digital to ensure transparency and reduce human involvement. Land ownership will be verified through official land records, while loan payments will be released in stages linked to construction progress.

The Punjab government will provide financial protection to the bank by approving a 9 percent credit guarantee. Previously, loans were not directly issued by the Bank of Punjab. Instead, the scheme was funded through the Annual Development Programme (ADP), where the government allocated subsidies and funds.

Under the new policy, loan financing will now come directly from the bank’s balance sheet. The system will operate through a digital platform developed by the Punjab Information Technology Board (PITB), making the process faster and more efficient.

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Authorities said more than 100,000 families have already benefited from the Apni Chhat Apna Ghar scheme. The government believes the new digital reforms will accelerate home construction and improve transparency.

The initiative is part of Punjab’s broader effort to help low-income families own homes through easy and interest-free financing.