Payment Terms and Installments Details for Mera Ghar Mera Ashiana Scheme 2025

The Mera Ghar – Mera Ashiana Scheme 2025 is a housing finance program started by the Government of Pakistan and State Bank of Pakistan (SBP). The purpose of this scheme is to make it easier for people to buy or build their first home. Many people are interested in this program, but they want to know about the payment terms, installments, and loan conditions in simple words.

This article explains everything about the payment structure, loan repayment, markup (interest), and installments for the scheme.

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Why Payment Terms Matter

Whenever you apply for a loan, it is important to understand how you will return the money. Many people avoid loans because they fear high markup and strict repayment rules. In this scheme, the government is helping by paying part of the markup for you. This makes the monthly installment small and affordable.

The loan is designed for ordinary people with limited income, so the repayment plan is simple and spread over many years.

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Loan Size and Tiers

The scheme offers two levels of loans, also called tiers:

• Tier 1 (T1): Up to PKR 2 million
• Tier 2 (T2): Above PKR 2 million and up to PKR 3.5 million

This means you can borrow up to 3.5 million rupees, depending on your housing need.

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Loan Tenor (Time to Repay)

The maximum time to return the loan is 20 years. You can choose a shorter time if you want, but 20 years makes the monthly installments smaller.

The markup subsidy from the government is given for the first 10 years. This means your installments will be much lower in the first 10 years compared to normal bank loans.

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Markup (Interest) Rates for Customers

Markup is the extra money you pay on top of the loan. Normally, banks charge high markup based on the KIBOR rate plus their own margin. But in this scheme, the government is helping by giving a subsidy.

The customer has to pay only a fixed rate:

• Tier 1: 5% fixed markup
• Tier 2: 8% fixed markup

This rate is much lower than market rates, which usually go above 15%.

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Example of Installments

Let’s understand with a simple example.

Case 1: Loan of PKR 2 million (Tier 1)

• Markup rate: 5%
• Loan tenor: 20 years
• Approximate monthly installment: PKR 13,200

Case 2: Loan of PKR 3.5 million (Tier 2)

• Markup rate: 8%
• Loan tenor: 20 years
• Approximate monthly installment: PKR 29,200

(Note: Actual installments may change slightly depending on the bank’s calculations.)

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Down Payment (Equity)

You do not need to pay the full amount yourself. The loan is based on a Loan-to-Value ratio of 90:10.

• 90% loan is given by the bank.
• 10% equity (down payment) is paid by you.

For example:

• If your house costs PKR 2 million, you only need to pay PKR 200,000. The bank will pay PKR 1.8 million.
• If your house costs PKR 3.5 million, you pay PKR 350,000 and the bank covers the rest.

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Bank Charges

Many people worry about hidden charges in loans. But this scheme has simple rules:

• No processing fee
• No prepayment penalty

This means you do not pay extra for applying, and if you want to return the loan early, the bank will not fine you.

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Installment Plan

The installment plan is based on your loan size and time period.

• Monthly Installments: Paid every month to the bank.
• Equal Monthly Installments (EMIs): You pay the same amount every month, which makes planning easy.
• Markup Subsidy: The government pays the difference in markup directly to the bank. You only pay the fixed 5% or 8% rate.

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Payment Flexibility

The scheme also gives some flexibility:

• You can choose a shorter repayment period if you want to finish early.
• You can pay extra anytime without penalty. This will reduce your balance and future installments.
• If your income increases, you can return the loan faster.

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Benefits of Long Tenor

The main benefit of a 20-year repayment period is that the monthly installment becomes small and affordable. Families with average income can manage the installment alongside daily expenses.

For example:

• A 10-year loan of PKR 2 million at 5% markup = around PKR 21,200 monthly installment.
• A 20-year loan of PKR 2 million at 5% markup = around PKR 13,200 monthly installment.

So, the longer the tenor, the easier the monthly payment.

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Who Can Apply

Only certain people can apply for this scheme:

• Pakistani citizens with a valid CNIC.
• First-time homeowners (not owning any house already).
• People with stable income who can pay the monthly installments.

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Participating Banks

You can apply through:

• All Commercial Banks
• All Islamic Banks
• Microfinance Banks
• House Building Finance Corporation (HBFCL)

Every bank has been asked by SBP to spread this scheme across Pakistan.

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Risk Sharing by Government

The government has promised to cover 10% of the loan portfolio in case of default. This gives confidence to banks to provide loans to people with low and middle income.

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Key Advantages for Customers

• Low markup rates (5% and 8%).
• Easy installments over 20 years.
• No hidden charges or processing fees.
• No penalty for early payments.
• Government subsidy makes the scheme reliable and safe.
• Small down payment of only 10%.

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Conclusion

The Mera Ghar – Mera Ashiana Scheme 2025 is a big step by the Government of Pakistan and SBP to support families who want to buy or build their first home. The payment terms are very friendly, with long repayment time, small monthly installments, and low markup rates.

This scheme is not only about giving loans; it is about giving hope, stability, and a future to thousands of Pakistani families.

If you are planning to build or buy a house, this scheme is a strong option to make your dream of owning a home come true.