Naya Pakistan Housing Scheme Loan By State Bank of Pakistan

Last year, State Bank of Pakistan launched the loan scheme of Naya Pakistan Housing Scheme Loans which was launched to facilitate the middle income and lower income groups to finance their own houses. But the conditions of State Bank were as such which exclude many people from these lower income groups. Many people belonging to these income groups cannot finance their homes due to lack of cash at hand and it is very difficult to obtain a loan from private banks.

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Naya Pakistan Housing Scheme Loan By State Bank of Pakistan

Due to this, the provisions provided by State Bank were revised on 25th March, 2021 to make it more easy and convenient for the people who actually deserve these loans. A circular was instigated by State Bank of Pakistan regarding these changes that were made to facilitate the people who want to have their dream home but cannot due to the high inflation in Pakistan’s economy.

Major Changes in the Loan Scheme Provisions:

  • The first major change that was made was the increasing the limit of the loan by doubling the amount of loan limit to be provided to the people for the purchase of their homes.


  • The previous provisions had 3 tiers which were not suitable enough for the low income group. Now the fourth tier has been introduced in which people can get PKR 1 crore instead of PKR 50 Lac for the home/ apartment of 10 Marla. Tier 2 includes the financing of PKR 60 Lac instead of PKR 30 Lac for 5 Marla.


  • The upper limits for Tier 2 and Tier 3 have been removed which included the limit of buying house of only PKR 60 Lac. Now, people can buy homes with the value of PKR 1 crore or more.
  • The installment plan has been changed and now included installment plan of minimum 5 years to maximum 20 years.
  • The condition to purchase the house which is constructed in the last one year has also been removed till 2023. People can easily buy whatever kind of the home they want in this duration.
  • The restriction of first transfer has been also removed too.
  • People of lower income group can obtain this loan from any microfinance bank which specializes in the giving out small loans to the people. Tier 0 includes this provision and includes the upper limit of PKR 20 Lac.
  • The Interest rate for tier 1 has been reduced from 5% to 3% in 5 years and from 7% to 5% in the next 5 years. This reduction of interest rate will lower the amount of the monthly installments.
  • The subsidy for these loans is now extended to PKR 36 billion from PKR 33 billion.


These changes are positive news for the lower to middle income groups as they are now included in this scheme to a great extent.

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New Provisions for Naya Pakistan Housing Scheme Loan:

All Pakistani Nationals holding the CNIC of Pakistan are eligible for this scheme if they are first time home owners. The other condition is that only one individual from one family can have subsidized house loan facility under this scheme only once.Newly constructed housing units during last one year from the date of application should be financed only. However, this requirement will not be applicable till March 31, 2023 under Tier 0, Tier 2 and Tier 3.All commercial banks including Islamic banks, microfinance banks and House Building Finance Company Limited (HBFCL) will be the loan providers under this scheme.

A standardized application form both in English and Urdu will require minimum essential information with simple format.

The processing time will not exceed 30 days after submission of all documents by the borrower and the same will be clearly stated in the application form.

Banks which are giving out these loans will be having standardized loan documents and risk acceptance criteria to make them eligible for this purpose.SBP will publish consolidated information about the loans extended under this program for information of the public on quarterly basis on its website.

Mark up Subsidy Program

Eligibility Criteria


Tiers of the Scheme

Financing provided under Tier 0 Available through microfinance banks for financing of housing units under non-NAPHDA projects.
Financing provided under Tier 1 Available through banks for financing under NAPHDA projects
Financing provided under Tier 2 and Tier 3 Available through banks for financing of housing units under non-NAPHDA projects

Size of Housing Unit
Size of the housing loan is segregated into four tiers, stated as under:
Tier 0 (T0) (a)House up to 125 sq.  yd. (5 Marla) and

(b) Flat/apartment with maximum covered area of 1,250 sq.  ft.

Can be financed in T0

Tier 1 (T1) (a)House up to 125 sq. yd. (5 Marla) with maximum covered area of 850 sq. ft. and

(b) Flat/apartment with maximum covered area of 850 sq. ft.

Can be financed in T1

Tier 2 (T2) (a)House up to 125 sq.  yd. (5 Marla) and

(b) Flat/apartment with maximum covered area of 1,250 sq. ft.

Can be financed in T2

Tier 3 (T3) (a)House up to 250 sq.  yd. (10 Marla) and

(b) flat/apartment with maximum covered area of 2,000 sq. ft.
Can be financed in T3

Age of construction of housing units

Maximum Price of Housing Units
Maximum Price (Market Value) of a single housing unit at the time of approval of financing, as under:

·       Tier 1 (T1) – Rs 3.5 million

·       Tier 0 (T0), Tier 2 (T2) and Tier 3 (T3) – No limit

Maximum Loan size
 Maximum size of the loan provide to a single housing unit, as under:

·       Tier 0 (T0) – Rs 2.0 million

·       Tier 1 (T1) – Rs 2.7 million

·       Tier 2 (T2) – Rs 6.0 million

·       Tier 3 (T3) – Rs 10.0 million

Loan type
This loan should only be used to finance houses in long term. This financing cannot be used for any other purpose except to finance homes.

Loan Tenor
The minimum loan tenure will be 5 years and maximum loan tenor will be 20 years, depending upon choice and convince of customers.
Security Requirements As per banks’ credit policy and prudential regulations for housing finance, the housing unit financed will be mortgaged in favor of financing bank.

Pricing for Housing Loans:

Loan Tiers Customer Pricing Bank Pricing
Tier 0 5% for first 5 years &
7% for next 5 years
Tier 1 3% for first 5 years &
5% for next 5 years
Tier 2 5% for first 5 years &
7% for next 5 years
(Spread may vary)
Tier 3 7% for first 5 years &
9% for next 5 years
For loan tenors exceeding 10 years, market rate i.e. bank pricing will be applicable for the period exceeding 10 years.

Executing Agency

Application Form

Standardized Procedures


Geographical distribution
This housing loan is to be used to finance the property inside Pakistan. People can buy any house according to the tiers to in any part of the country.

Now, people from lower and middle income can easily finance their homes and make their dream homes about which they have always dreamed out.

For more information, you can contact Pakistan Property Services or visit our YouTube Channel where we post regularly about the real estate trends of Pakistan.

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