ISLAMABAD: The government has approved revisions to the “Mera Ghar Mera Aashiana (MGMA)” – Mortgage Financing for Low-Cost Housing scheme, including an increase to the maximum loan limit.
Loan Limit Increased to Rs10 Million
The Economic Coordination Committee (ECC) of the Cabinet approved the changes during a meeting chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. The decision followed a review of a summary submitted by the Ministry of Housing and Works.
Since its launch, the MGMA scheme has seen significant public interest, with over 10,594 loan applications received and loan disbursements already in progress. The ECC also approved expanding eligible housing size parameters and introducing a uniform 5% end-user pricing structure.
The revised framework aims to expand access to affordable housing, stimulate construction, generate employment, and promote sustainable home ownership. Implementation will continue through the State Bank of Pakistan, and already disbursed loans will be adjusted to the recent 5% rate to ensure consistency.
The committee emphasized that any subsidy payments will be tied to actual loan disbursements and managed within existing annual budget allocations. Targets for housing finance will be scaled over a four-year period.
The ECC also considered and approved a summary from the Ministry of Interior & Narcotics Control regarding a Technical Supplementary Grant.
Frequently Asked Questions
What is the “Mera Ghar Mera Aashiana” scheme?
The “Mera Ghar Mera Aashiana” (MGMA) is a mortgage financing scheme for low-cost housing.
How much has been loaned out under the scheme so far?
As of the ECC meeting, Rs810 million had been disbursed through 344 loan applications.
What changes were approved by the ECC?
The ECC approved increasing the maximum loan limit to Rs10 million, expanding eligible housing sizes, setting a uniform 5% end-user pricing, and adjusting existing loans to the new rate.
How might these changes impact the housing market in the coming years?
