ISLAMABAD: The federal government has approved the inclusion of non-bank finance companies (NBFCs) in the Prime Minister’s Apna Ghar housing scheme, a move aimed at expanding access to affordable home financing.
The approval follows a proposal by the Securities and Exchange Commission of Pakistan (SECP).
According to the SECP, non-bank housing finance and investment finance companies will now be able to provide housing loans of up to Rs10 million under the scheme. The move is expected to benefit citizens who do not maintain conventional bank accounts by giving them easier access to housing finance.
The regulator said microfinance companies participating in the programme will be allowed to offer loans of up to Rs5 million.
Under the scheme, borrowers will be eligible for financing at a 5% markup rate for the first 10 years.
The SECP said the extensive digital and physical networks of NBFCs, particularly in remote and underserved areas, would help broaden the reach of the programme. It added that a regulatory framework for NBFC housing finance has already been issued.
NBFCs will also be permitted to provide housing loans in collaboration with banks and other financial institutions.
