ISLAMABAD (Kashmir English): The federal government has decided to include the non-banking finance companies in the Prime Minister’s Apna Ghar Scheme, further expanding public access to the housing loan programme.
The Securities and Exchange Commission of Pakistan (SECP) had sought the inclusion of non-banking finance companies in the scheme, allowing more people, especially those without traditional bank accounts, to avail affordable housing finance.
Rs10m loan under Apna Ghar Scheme
Under the approved plan, non-banking housing finance companies and investment finance companies will be able to provide loans of up to Rs10 million under the Apna Ghar Scheme.
Microfinance companies will also be able to provide loans up to Rs5 million under the programme, according to the SECP.
The SECP said loans under the scheme will be available at only 5% interest rate for the first 10 years.
The move is expected to make housing finance easier for people who are not connected to the traditional banking system.
According to the SECP, NBFCs have a digital network that reaches remote and underdeveloped areas.
Officials said this wider reach will help expand access to the Prime Minister’s Apna Ghar Programme for people living in backward areas.
The SECP has also issued a framework for housing finance through non-banking finance companies under which NBFCs will also be allowed to provide loans in partnership with banks and other financial institutions.
