The federal government has approved the inclusion of lending Non-Banking Finance Companies (NBFCs) as Participating Financial Institutions under the Prime Minister’s Apna Ghar Program (PM-APG). The move is expected to broaden access to affordable housing finance by allowing eligible NBFCs and microfinance companies to offer subsidized home loans to underserved segments across Pakistan.
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ISLAMABAD: The federal government has approved the inclusion of lending Non-Banking Finance Companies (NBFCs) as Participating Financial Institutions (PFIs) under the Prime Minister’s Apna Ghar Program (PM-APG), significantly expanding access to affordable housing finance for first-time homebuyers.
The decision follows a proposal by the Securities and Exchange Commission of Pakistan (SECP) and is aimed at extending housing finance beyond traditional banking channels to reach a larger segment of the population.
NBFCs to Offer Housing Loans Under Apna Ghar Program
Under the approved framework, eligible non-banking housing finance companies and investment finance companies will be able to provide home loans of up to PKR 10 million under the Apna Ghar Scheme.
Meanwhile, microfinance companies participating in the program will be authorized to extend housing loans of up to PKR 5 million, enabling lower-income households to access affordable financing options.
The inclusion of NBFCs is expected to increase competition in the housing finance market while improving access for individuals with limited relationships with conventional banks.
Subsidized Home Loans for First-Time Buyers
The government’s housing scheme continues to offer attractive financing terms for eligible first-time homebuyers.
Successful applicants can obtain home financing with repayment periods of up to 20 years, while benefiting from a subsidized 5% mark-up rate for the first 10 years of the loan.
The program also includes risk coverage measures designed to support both borrowers and participating financial institutions.
SECP Issues Regulatory Framework for Participating NBFCs
Following the approval, the SECP has introduced a comprehensive regulatory framework outlining the operational requirements for NBFCs participating in the scheme.
The guidelines cover:
- Eligibility criteria for participating institutions
- Operational procedures
- Prudential requirements
- Risk management standards
- Monitoring and compliance mechanisms
The framework aims to ensure responsible lending practices while maintaining transparency and financial stability.
Move Expected to Boost Financial Inclusion
The inclusion of NBFCs under the Prime Minister’s Apna Ghar Program is expected to strengthen Pakistan’s housing finance ecosystem and improve financial inclusion.
By allowing a wider range of financial institutions to participate, the government aims to make home ownership more accessible for underserved communities and middle-income households across the country.
Implementation of the initiative will take place through direct lending by eligible NBFCs as well as partnerships with banks and development finance institutions where required.