The Securities and Exchange Commission of Pakistan (SECP) has announced a major expansion of the Prime Minister’s Apna Ghar Program after the federal government approved the inclusion of non-bank financial institutions, a move aimed at improving access to housing finance across the country.
According to the SECP, the decision was taken on its recommendation to allow Non-Banking Finance Companies (NBFCs) to participate in the government’s subsidized housing finance scheme alongside banks.
Under the new framework, Non-Bank Housing Finance Companies and Investment Finance Companies will be able to provide housing loans of up to Rs. 10 million, while Microfinance Companies will be allowed to extend financing of up to Rs5 million under the program.
Borrowers will continue to receive financing at a subsidized 5% markup for the first 10 years under the scheme, according to the regulator.
The SECP said bringing NBFCs into the program is expected to improve access to housing finance, particularly in remote and underserved areas where many non-bank financial institutions already have an established presence.
The regulator has also issued the operational framework governing the participation of NBFCs in the scheme. Under the framework, these institutions will also be permitted to provide financing in collaboration with banks and other financial institutions.
The move is intended to broaden the reach of the Prime Minister’s Apna Ghar Program by increasing the number of lenders participating in the housing finance market and expanding access to affordable home financing.
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