The Securities and Exchange Commission of Pakistan (SECP) has introduced new measures to widen housing finance accessibility by incorporating Non-Banking Finance Companies (NBFCs) into the Prime Minister’s Apna Ghar Programme, following federal government approval.
This initiative, proposed by the SECP, allows non-banking housing finance and investment finance firms to participate in the scheme, thereby extending home financing opportunities to a broader population, especially those outside the traditional banking sector.
Under the revised framework, non-banking housing finance and investment companies are authorized to provide housing loans up to Rs10 million. Meanwhile, microfinance institutions involved in the programme can offer loans up to Rs5 million. This expansion aims to facilitate easier access to affordable housing for a larger segment of society.
Notably, the inclusion of NBFCs will benefit individuals without conventional bank accounts by offering housing finance under more flexible terms. Borrowers will continue to enjoy a subsidized financing rate with a 5 percent markup for the first ten years, consistent with the existing incentives of the programme.
In a significant development, the SECP highlighted that NBFCs possess extensive digital networks capable of reaching remote and underserved regions where traditional banking services are limited. This digital outreach is expected to enhance the programme’s penetration into these areas.
The regulator has also finalized and issued the regulatory framework governing housing finance operations by NBFCs, enabling qualified companies to start providing loans under the scheme promptly. This move is anticipated to promote financial inclusion and expand affordable housing access throughout Pakistan.
