ECC raises MGMA housing loan cap to Rs10m and cuts markup to 5%
“ECC has increased the MGMA low-cost housing loan cap to Rs10 million and reduced the markup rate to 5% to expand affordability.”
Key points
- ECC has increased the MGMA low-cost housing loan cap to Rs10 million and reduced the markup rate to 5% to expand affordability.
- Officials say demand remains strong, with over 10,000 applications received and initial disbursements already underway.
The Economic Coordination Committee (ECC) of the federal cabinet has approved key changes to the Mera Ghar Mera Aashiana (MGMA) low-cost housing mortgage programme, including raising the maximum loan limit to Rs10 million.
The meeting, held at the Finance Division and chaired by Finance Minister Senator Muhammad Aurangzeb, also approved standardising the markup rate at 5%, lowering it from the earlier 8%.
According to the approved revisions, the government aims to facilitate financing for around 500,000 housing units over the next four years. The updated parameters include eligibility for housing units up to 10 marlas or flats up to 1,500 square feet, along with a fixed end-user pricing structure at 5%.
The ECC also endorsed year-wise subsidy estimates tied to disbursements for 50,000 housing units up to June 30, 2026.
Officials said the programme has attracted strong demand since launch, with more than 10,594 loan applications received. They added that loans amounting to Rs810 million have been disbursed so far against 344 applications, while the State Bank of Pakistan has notified the scheme’s features. Prime Minister Shehbaz Sharif has also directed that the scheme’s loan and portfolio sizes should remain aligned with the initial approval framework.
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