The Securities and Exchange Commission of Pakistan (SECP) has announced measures aimed at broadening access to housing finance by bringing Non-Banking Finance Companies (NBFCs) into the ambit of the Prime Minister’s Apna Ghar Programme, following approval from the federal government.

The regulator said the move, made on the SECP’s proposal, would enable non-banking housing finance and investment finance companies to participate in the scheme, making home financing more accessible to a wider segment of the population, particularly those outside the traditional banking system.

Easier access to affordable housing

According to the SECP, non-banking housing finance and investment finance companies will be authorised to provide housing loans of up to Rs10m, while microfinance companies participating in the programme will be able to extend loans of up to Rs5m.

The regulator said the inclusion of NBFCs would allow citizens without conventional bank accounts to obtain housing finance under easier terms and conditions. It added that borrowers under the programme would be eligible for financing at a 5pc mark-up rate for the first 10 years, in line with the scheme’s existing incentives.

Digital outreach to underserved areas

The SECP said the decision would strengthen the reach of the Prime Minister’s Apna Ghar Programme, noting that NBFCs have extensive digital networks capable of serving remote and underserved areas where access to conventional banking services remains limited.

The regulator also announced that it had issued the regulatory framework governing housing finance by NBFCs, paving the way for eligible companies to begin offering financing under the programme.

It said the initiative was expected to improve financial inclusion and expand access to affordable housing across the country.