SBP eases lending rules under ‘Wazir-e-Azam Apna Ghar Program’ to boost housing finance

The State Bank of Pakistan (SBP) has introduced new facilitation measures to speed up the implementation of the “Wazir-e-Azam Apna Ghar Program – Ghar Ho Tu Apna” housing finance programme, easing lending conditions and tightening processing timelines to improve access for prospective homeowners.

According to a circular issued on Tuesday, banks and the House Building Finance Company Limited (HBFCL) have been allowed greater flexibility in assessing borrowers and processing applications.

Under the revised framework, total monthly amortisation payments, including the housing finance under consideration and repayment obligations against all other consumer financings, should not exceed 65% of the net disposable income of the prospective borrower.

For the properties having a market value of up to Rs5 million, banks/HBFCL can use their internal resources to assess the property. Meanwhile, properties having a market value above Rs5 million should be subject to assessment of the property by at least one valuator listed on the PBA-approved panel.

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As per the framework, banks/HBFCL shall not take more than 15 working days for the credit approval process, from the date of receipt of the application under the scheme, along with complete information.

Additionally, the authorities have relaxed certain prudential regulations—specifically HF-3 and HF-7—within the scope of the scheme to facilitate quicker approvals and broader outreach.

The central bank has directed banks and HBFCL to ensure meticulous compliance with the instructions.