ISLAMABAD: Access to affordable housing finance is set to become easier for citizens, particularly underserved and non-banking segments, as 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).
In this regard, the SECP has issued circular 16 of 2026 on Saturday, expanding the government’s affordable housing finance initiative by allowing lending NBFCs to participate as Participating Financial Institutions (PFIs) in the Government Mark-up Subsidy Scheme and the Risk Coverage Scheme for Affordable Housing Finance.
The SECP, recognising the potential of NBFCs to expand housing finance, proposed their inclusion in the program. The initiative will not only enhance the availability of housing loans but also strengthen the role of NBFCs in Pakistan’s financial sector.
Under the scheme, non-banking housing finance companies and investment finance companies will provide housing loans of up to PKR 10 million, while microfinance companies will offer loans of up to PKR 5 million.
The inclusion of NBFCs will provide people with additional channels to access subsidized housing finance, especially those with limited access to traditional banking services. With their wider outreach, flexible financing models, and focus on underserved customers, NBFCs are expected to help more families move towards owning their first homes.
The Prime Minister’s Apna Ghar Program aims to promote affordable housing by providing mark-up subsidies and risk coverage for housing finance. Under the scheme, eligible first-time home buyers can obtain loans for a maximum period of 20 years at a subsidized mark-up rate of 5 percent for the first 10 years.
To facilitate effective implementation, SECP has introduced a comprehensive regulatory framework enabling eligible lending NBFCs to provide housing finance directly through their own resources or in collaboration with other NBFCs, commercial banks, and development finance institutions.
SECP has also issued detailed guidelines covering eligibility criteria, operational procedures, prudential requirements, and monitoring mechanisms to ensure responsible and sustainable lending under the scheme.
The inclusion of NBFCs marks an important step towards improving financial inclusion and supporting the government’s vision of making home ownership more accessible and affordable for citizens across Pakistan.
Copyright Business Recorder, 2026
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