If you are paying PKR 30,000 or 40,000 a month in rent, you are essentially burning money. That cash is never coming back. For years, the biggest hurdle to buying a house in Pakistan has been the interest rate. With standard bank loans hovering at 22% KIBOR, buying a home was impossible for a salaried person. Here is how to apply for Mera Ghar Mera Ashiana (MGMA) scheme. This is the Federal Government’s subsidized housing initiative, designed to help low-to-middle-income earners build or buy their first property. Unlike private bank loans, the rates here are fixed and affordable.
Here is the step-by-step guide on how to secure this loan in January 2026.
1. How to Apply for Mera Ghar Mera Ashiana – What is the Offer?
This scheme is regulated by the State Bank of Pakistan (SBP) and executed by commercial banks.
- Loan Limit: Up to PKR 3.5 Million (varies by Tier).
- Tenure: Up to 20 Years.
- The Markup (Interest): This is the game-changer. The government subsidizes the interest rate for the first 10 years.
- Tier 1 (NAPHDA Projects): Markup is fixed at 5%.
- Tier 2 (Open Market): Markup is fixed at 7% to 9%.
Compare this to a standard car loan or personal loan which charges 24%+. This is arguably the cheapest money you can borrow in Pakistan today.
2. Am I Eligible?
Before you go to the bank, check this list. If you miss one, you will be rejected.
- Citizenship: All Pakistani nationals with a valid CNIC.
- First-Time Homeowner: You must not own any house or flat in Pakistan currently.
- Income:
- Tier 1: No minimum income limit.
- Tier 2: Designed for those earning roughly PKR 40,000 to 100,000 per month.
- Property Use: You must live in the house. You cannot rent it out immediately.
3. What Can I Buy?
You can use this loan for three things:
- Construction: You own a plot and need money to build the structure.
- Purchase: You want to buy a brand new flat or house (First purchase).
- Expansion: You have a small unit and want to build an upper floor (Terms vary by bank).
Size Limits:
- House/Plot: Up to 5 Marla (125 sq yards).
- Apartment: Up to 1,250 sq ft covered area.
4. The Application Process (Step-by-Step)
This scheme does not have an online portal. You must deal directly with the banks.
- Select a Bank: Meezan Bank (Islamic), Bank Alfalah, and HBL are currently the most active lenders for this scheme.
- Visit the Branch: Ask for the specialized “Mera Ghar Mera Ashiana / Low Cost Housing” desk. Do not go to the general “Consumer Finance” counter.
- Submit Documents:
- Valid CNIC.
- Salary Slips (Last 3 months) or Business Proof.
- Bank Statement (Last 6 months).
- Copy of Property Documents (Fard/Allotment Letter) of the unit you intend to buy.
- Undertaking: An affidavit stating this is your first home.
5. The Costs You Must Pay
Be prepared to pay some upfront costs:
- Down Payment: The bank finances 90%. You must arrange the remaining 10% yourself.
- Processing Fee: Usually approx. PKR 4,000 – 6,000 (Non-refundable).
- Legal & Valuation: The bank will hire a lawyer and evaluator to check the property documents. This costs roughly PKR 15,000.
Verdict
If you have a stable job, this is a financial no-brainer. A PKR 3 Million loan at 7% markup results in a monthly installment of roughly PKR 22,000 – 26,000. If you are already paying that much in rent, why not pay it towards your own asset?
Go to your nearest designated branch this week. Funds are released in quotas, and they run out fast.