The federal government has approved the inclusion of lending Non-Banking Finance Companies (NBFCs) as Participating Financial Institutions (PFIs) under the Prime Minister's Apna Ghar Programme (PM-APG), making affordable housing finance more accessible for citizens, particularly underserved and non-banking segments. The Securities and Exchange Commission of Pakistan (SECP) proposed the inclusion, recognizing NBFCs' potential to expand housing finance. This initiative will enhance loan availability and strengthen NBFCs' role in Pakistan's financial sector.
Loan Limits and Subsidized Markup
Under the scheme, non-banking housing finance companies and investment finance companies will provide housing loans up to Rs 10 million, while microfinance companies can offer loans up to Rs 5 million. Eligible first-time home buyers can obtain loans for a maximum of 20 years at a subsidized markup rate of 5 percent for the first 10 years. The program aims to promote affordable housing through mark-up subsidies and risk coverage.
Regulatory Framework and Guidelines
SECP has introduced a comprehensive regulatory framework enabling eligible lending NBFCs to provide housing finance directly or in collaboration with other NBFCs, commercial banks, and development finance institutions. Detailed guidelines cover eligibility criteria, operational procedures, prudential requirements, and monitoring mechanisms to ensure responsible lending.
Impact on Financial Inclusion
The inclusion of NBFCs will provide additional channels for subsidized housing finance, especially for those with limited access to traditional banking. With wider outreach and flexible financing models, NBFCs are expected to help more families own their first homes. This step marks progress toward improving financial inclusion and supporting the government's vision of accessible home ownership across Pakistan.
