Mera Pakistan Mera Ghar Initiative by State Bank Of Pakist

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What is “Mera Pakistan Mera Ghar”?

“Mera Pakistan Mera Ghar” (MPMG) is an initiative by the State Bank of Pakistan (SBP) to promote housing and construction finance in the country. The goal is to make it easier for people—especially in low and middle income groups—to get loans to build or buy houses. The government and SBP believe that boosting housing also helps many other parts of the economy (builders, construction material, labor, etc.).

Why this is needed

  • Pakistan has a shortage of about 12 million residential units, especially in lower and middle income groups. State Bank of Pakistan

  • The construction sector is connected to many other industries, and employs many people. Strengthening housing & construction helps overall economic growth. State Bank of Pakistan

What SBP is doing under this program

SBP has introduced several rules, incentives, and frameworks to help banks and financial institutions offer housing loans more effectively. Here are the key features:

1. Prudential Regulations for Housing Finance

These are special rules binding banks/DFIs (Development Finance Institutions) when they give housing loans. Some main points:

  • Encourage banks to offer housing finance in smaller towns and rural areas too. State Bank of Pakistan

  • Banks must have standard documents, clear and understandable terms, and provide copies to customers. State Bank of Pakistan

  • Some rules around classifying bad loans are relaxed (for example, how many days a loan is “substandard,” “doubtful,” etc.) State Bank of Pakistan+1

  • Housing loans can include financing for solar energy systems (for up to 10 years) under certain conditions. State Bank of Pakistan

2. Steering Committee for Housing & Construction Finance

SBP has created a special committee (chaired by the SBP Governor) with members from major banks, government housing authorities, and experts. State Bank of Pakistan

This committee works on:

  • Simplifying the loan application process

  • Coordinating with provincial governments to reduce stamp duty and registration costs

  • Creating standard criteria for approving developers / builders for projects

  • Overcoming legal or regulatory obstacles in housing finance State Bank of Pakistan

3. Mandatory Targets for Banks

SBP has told banks that 5% of their private sector advances should go to housing and construction finance, to be achieved over about 18 months (by December 2021). State Bank of Pakistan+1

Banks are given monthly and quarterly targets. If a bank fails to meet its target, SBP may penalize it; if it meets or exceeds it, SBP gives an incentive. State Bank of Pakistan+1

One incentive is that banks meeting the targets can reduce the CRR (Cash Reserve Requirement) equivalent to the increase in their housing finance. Conversely, banks that fall short must maintain extra CRR. State Bank of Pakistan

4. Financing Under-Construction Projects

Not just completed houses — people can get housing finance for units that are still under construction, under certain guidelines. State Bank of Pakistan

Key conditions include:

  • All payments to builders must go via an escrow account (a special bank account) to ensure transparency. State Bank of Pakistan

  • Clear legal responsibilities and enforceable rights are required for both the borrower and builder. State Bank of Pakistan

5. Standard Risk Criteria, Title Verification, and Equity Rules

  • SBP has pushed for a standardized risk acceptance criterion for developers and builders — banks do not have to reinvent evaluation methods for each case. State Bank of Pakistan

  • For property/title document verification, there is a standard checklist. In Punjab, SBP helped develop an online portal for prescreening title documents. State Bank of Pakistan

  • If a borrower already owns some property or securities (for example, another house or liquid investments), banks may accept those assets as part (or all) of the required 15% equity contribution. This makes upgrading or changing houses easier. State Bank of Pakistan

6. Alternate Delivery Channels & Developer Support

  • Banks are encouraged to use alternate channels like real estate agents, microfinance institutions, branchless banking, etc., to originate housing finance customers. State Bank of Pakistan

  • For builders and developers, especially those working with NAPHDA (National Authority for Public Housing & Development Authority), SBP has arranged focal persons in banks who help coordinate project financing. State Bank of Pakistan

What this “offer” means for you (for ordinary people)

  • If you plan to buy or build a house, even in a town or smaller city, there is a better chance banks will give you a loan under favorable conditions.

  • You might be able to get finance before the property is fully built (under construction) under those escrow rules.

  • If you already own some property or other assets, banks may accept them so you don’t need to pay full cash equity.

  • Because of competition and regulatory pressure, banks may simplify documentation and make terms more transparent.

  • This initiative should help lower the cost or barriers for many people to become homeowners.

If you like, I can write a version in Urdu or Punjabi, or prepare a shorter summary or infographic. Would you like me to send that too?

You said:
remove references and write in simple word that how some one can apply to this offer and get benifits
ChatGPT said:

Sure — here’s a simple and easy-to-understand version of the article that explains how someone in Pakistan can apply for the “Mera Pakistan Mera Ghar” housing offer and what benefits they can get from it:

🏠 Mera Pakistan Mera Ghar — Easy Home Loan Scheme

Mera Pakistan Mera Ghar (MPMG) is a home loan scheme started by the State Bank of Pakistan (SBP) and the Government of Pakistan.
Its purpose is to help people — especially those with low or middle income — buy or build their own homes.

✅ What You Can Do Under This Scheme

Through this program, you can:

  • Buy a new house or flat

  • Build a house on your own land

  • Buy a plot and build a house on it

  • Get a loan for an under-construction project

💰 Benefits of the Scheme

  1. Low Markup (Interest) Rates
    The government pays part of the profit to the bank, so you get a much cheaper loan than normal.

  2. Easy Installments
    You can return the money in up to 20 years, which makes monthly payments affordable.

  3. Available Across Pakistan
    You can apply from any bank branch or through Islamic banking windows in your city or town.

  4. For Everyone
    It’s open to men, women, and overseas Pakistanis who don’t already own a house in Pakistan.

  5. Government Support
    The government guarantees part of the loan, so banks feel safer lending to more people.

📝 How to Apply

Here’s how you can apply step by step:

  1. Visit Your Nearest Bank Branch
    Go to any big bank such as HBL, UBL, MCB, Meezan Bank, Bank Alfalah, or any other bank that offers this scheme.
    Ask for the “Mera Pakistan Mera Ghar” loan form.

  2. Fill Out the Application Form
    Provide your CNIC, income proof, and details about the house you want to buy or build.

  3. Submit Required Documents
    Usually, banks ask for:

    • Copy of CNIC

    • Salary slip or business income proof

    • Property or plot documents

    • Utility bills (for address verification)

  4. Bank Review
    The bank will check your documents, income, and credit history to see how much loan you can afford.

  5. Loan Approval
    Once approved, the bank will transfer the amount directly to the builder, developer, or seller of the house.

  6. Start Paying Easy Monthly Installments
    After the loan is disbursed, you will start paying monthly installments to the bank.

🏡 Example

Let’s say you want to buy a small 5-marla house costing Rs. 40 lakh.
You apply through your bank, and they approve a loan of Rs. 30 lakh.
You pay the rest as your own share.
Then you pay the bank monthly installments at a low markup rate — much less than a normal housing loan.

⚙️ Who Can Apply

You can apply if you:

  • Are a Pakistani citizen (living in Pakistan or abroad)

  • Are over 20 years old

  • Do not already own a house in Pakistan

  • Have a steady income (job or business) to pay monthly installments

🌟 Why You Should Apply

  • You get your own house with affordable payments

  • It’s backed by the Government of Pakistan

  • Low markup, long-term loans, and simple process

  • Banks are required to give a certain number of these loans, so approval chances are higher

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