SBP raises housing loan limit to Rs10 million, cuts rate to 5% under subsidy scheme

The State Bank of Pakistan (SBP) has revised its markup subsidy and risk-sharing scheme for affordable housing, increasing the maximum loan size to Rs10 million and setting a fixed end-user rate of 5%.

Under the updated framework, loans of up to Rs10 million will be available for houses up to 10 marla (2,720 square feet) and flats up to 1,500 square feet.

The SBP said the new pricing will apply to all customers under the scheme, with the end-user rate fixed at 5%.

For loans already disbursed at 8%, the rate will be adjusted down to 5% to ensure uniformity across borrowers.

The changes follow government approval of revisions to the scheme aimed at promoting access to affordable housing.

Eligibility criteria remain unchanged, with the scheme available to first-time homeowners who are Pakistani citizens, hold valid CNICs and do not own any residential property.

The scheme covers financing for the purchase of houses or flats, construction on owned plots, and purchase of plots followed by construction.