SBP bars bank employees from availing PM housing scheme loans

The State Bank of Pakistan has clarified that employees of banks, development finance institutions and microfinance banks cannot obtain financing under the government's Wazir-e-Azam Apna Ghar Program, Ghar Ho Tu Apna, through their own institutions.

The clarification was issued in a circular letter dated September 14, with reference to earlier instructions on the housing program.

Who is barred from the Apna Ghar loan program?

The SBP has ruled that employees of banks, DFIs and MFBs are specifically ineligible for financing under the Wazir-e-Azam Apna Ghar Program. The restriction applies only to the institutions' own staff, while the scheme remains open to other eligible applicants under its usual terms and conditions. The central bank has directed all participating institutions to inform their branches and field staff of the change.

"The Banks', DFIs' and MFBs' own employees are not eligible for availing financing under Wazir-e-Azam Apna Ghar Program," the SBP said. The central bank instructed banks to ensure compliance across their branch and field networks.

How much financing has the Apna Ghar program approved?

The clarification comes as the government-backed housing finance program continues to see a sharp rise in applications and approved financing. As of September 4, the program had received 156,813 applications, of which 60,349 loans worth PKR351.3 billion had been approved, according to the Finance Ministry.

Approved financing increased by PKR38.3 billion from the end of August, a rise of about 12% in less than a week. Of the approved financing, 9,717 loans amounting to PKR51.13 billion had been disbursed, meaning about 14.5% of the approved amount had actually reached borrowers at that point.

Who is eligible for the Apna Ghar loan program?

The program offers housing finance for tenors of up to 20 years, with a fixed 5% rate for the first 10 years, available to eligible applicants outside the newly barred group of bank, DFI and MFB employees. The latest figures also point to a substantial gap between approved and disbursed financing. The Finance Ministry has stressed the need to accelerate the conversion of approved cases into actual disbursements.

The employee restriction adds a specific eligibility limitation to the program, preventing staff of participating banks, DFIs and MFBs from accessing the facility through their own institutions. The SBP has instructed banks to communicate the clarification across their branch and field networks and ensure its implementation.