SBP bars bank employees from Apna Ghar Housing Finance Scheme

The State Bank of Pakistan (SBP) has issued a clarification, dated September 14, 2026, rendering employees of participating banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs) ineligible for financing under the Wazir-e-Azam Apna Ghar Program, also known as Ghar Ho Tu Apna, reported 24NewsHD TV channel on Wednesday.

This directive, communicated through SH&SFD Circular Letter No. 05 of 2026, instructs these institutions to inform their branches and field staff and ensure strict compliance.

The restriction specifically targets employees of the financial institutions themselves and does not affect their ability to obtain ordinary commercial housing finance outside the subsidized government program.

The broader Ghar Ho Tu Apna scheme, however, continues to operate with its existing features, including maximum financing of up to Rs10 million, a fixed customer rate of 5%, and loan tenors of up to 20 years.

Originally launched in September 2025 as the Mera Ghar–Mera Ashiana Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance, the program was later renamed the Wazir-e-Azam Apna Ghar Program — Ghar Ho Tu Apna.

In March 2026, the scheme was significantly expanded, allowing financing for houses up to 10 Marla (2,720 sq ft) or flats up to 1,500 sq ft, with the maximum loan amount increased to Rs10 million. The customer rate was standardized at a fixed 5%, with previous loans at an 8% rate to be adjusted accordingly.

The program’s structure retains a long-term housing finance framework, offering up to 90% financing against 10% borrower equity, with no processing costs or prepayment penalties. Participating institutions include commercial banks, Islamic banks, microfinance banks, and the House Building Finance Company.

Financing under Ghar Ho Tu Apna can be utilized for purchasing a house or flat, constructing a house on an owned plot, or acquiring a plot along with simultaneous construction.

In June 2026, the government expanded eligibility to include Overseas Pakistanis and Non-Resident Pakistanis holding NICOP or POC, and permitted institutional financing for government employees through departmental bulk-processing arrangements. The scheme was further broadened to allow financing through private developer-led housing projects.

To expedite processing, the SBP mandated a 15-working-day limit for credit approval upon receipt of a complete application. The Debt Burden Ratio was set at a maximum of 65% of the borrower’s net disposable income.

For properties valued up to Rs5 million, internal valuation by banks and HBFCL is permitted, while properties exceeding Rs5 million require assessment by a Pakistan Banks’ Association-approved panel valuator.

The September 14 circular represents a specific eligibility carve-out within a scheme that has otherwise been expanding its reach and channels.

For other eligible applicants, the program continues under the existing framework, unaffected by this new restriction on financial sector employees.

Reporter: Ashraf Khan