SBP Lowers Housing Loan Rate to Five Percent

The State Bank of Pakistan has introduced revisions to its markup subsidy and risk-sharing framework for affordable housing, enhancing the maximum financing limit to Rs10 million while fixing the end-user markup rate at 5%.

Under the revised scheme, financing facilities of up to Rs10 million will be extended for residential units comprising houses up to 10 marla (approximately 2,720 square feet) and apartments up to 1,500 square feet.

According to SBP, the updated pricing structure will uniformly apply to all beneficiaries under the programme, with a fixed end-user rate of 5% across the board.

For borrowers who have already availed financing at a markup rate of 8%, the applicable rate will be reduced to 5% to maintain consistency and equitable treatment among participants.

These amendments follow formal approval by the government, aimed at strengthening access to affordable housing and encouraging home ownership.

The eligibility framework remains unchanged. The scheme continues to be restricted to first-time homeowners who are Pakistani nationals, possess valid CNICs, and do not hold ownership of any existing residential property.

The financing facility extends to multiple purposes, including the purchase of constructed houses or flats, construction on self-owned plots, as well as acquisition of plots followed by subsequent construction.