PM's Apna Ghar Programme: Here's all you need to know

To tackle Pakistan’s acute housing shortage, the federal government has rolled out the Prime Minister’s Apna Ghar Programme (PM-AGP), officially titled ‘Wazir-e-Azam Apna Ghar Programme – Ghar Ho Tu Apna’.

Designed as a subsidised, nationwide housing finance initiative, the scheme aims to help low- and middle-income families acquire their own homes while simultaneously boosting the national economy through increased construction activity.

Here is a comprehensive guide on how the programme works, who qualifies, and how to apply.

What is Apna Ghar Programme?

The PM-AGP is a government-backed initiative that provides affordable, long-term financing to the citizens who do not currently own a house. By extending subsidised loans through financial institutions, the scheme targets first-time homebuyers across the country, including non-resident Pakistanis.

The programme also seeks to stimulate allied industries in the housing sector, generating widespread employment opportunities.

Who is eligible?

The scheme has been designed with flexible eligibility criteria to accommodate various income groups, including individuals working in the informal economy:

It’s open to all Pakistani citizens holding a valid CNIC and Non-Resident Pakistanis (NRPs) holding a NICOP or POC up to 65 years of age can also apply.

Applicants must not already own a residential unit in their name.

No profession is barred. Lawyers, journalists, judges, police, and armed forces personnel are all eligible.

Individuals both with and without formal pay slips qualify. Applicants in the informal sector can provide alternative proof of income, such as bank statements, utility bills, and mobile top-up records.

Joint applications are also accepted as up to four individuals can pool their incomes in a joint application to meet loan repayment conditions.

Monthly loan installments are capped at a maximum of 65% of the applicant’s total income.

What can be financed and property limits?

The initiative covers various residential needs, provided the property meets specific size criteria:

Financing options: Funds can be used to purchase a built house or apartment, construct a house on an existing plot, buy a plot and build on it, or renovate an existing home.

The scheme covers houses up to 250 square yards and apartments up to 1,500 square feet.

Key loan features, markup, subsidies

The government has allocated Rs71 billion in subsidies under the FY27 budget to keep markup rates low and absorb risk for participating lenders.

Maximum financing can be done up to Rs10 million through commercial and Islamic banks, and up to Rs5 million through microfinance companies.

A fixed, subsidized markup rate of 5% applies for the first 10 years. Market-based rates will apply for the remaining tenure. Repayment periods stretch up to 20 years max.

Applicants contribute at least 10% of the upfront cost or down payment, while financial institutions cover the remaining 90%.

No processing charges or prepayment penalties apply if a borrower settles the loan early.

Risk guarantee: The federal government offers 10% first-loss coverage to banks on the outstanding loan portfolio to encourage lending.

Where to apply and required support

Applications can be submitted online via a dedicated portal or physically through commercial banks, Islamic banks, microfinance banks, the House Building Finance Company Limited (HBFCL), and eligible non-bank financial companies (NBFCs).

The State Bank of Pakistan (SBP) has mandated that participating financing institutions decide on complete credit applications within 15 working days.

Provincial governments have been directed to set up facilitation desks at the district level to help applicants secure required land ownership records. Meanwhile, the Ministry of Housing and the SBP are working to simplify the loan application forms.

A dedicated helpline to address public queries and resolve housing finance issues will be launched shortly.

The above article is contributed by Baseer Ahmed, Head of Politics Desk at Business Recorder (Digital).