The federal government has approved the inclusion of non-banking financial companies (NBFCs) in the Prime Minister’s “Apna Ghar” scheme today on the recommendation of the Securities and Exchange Commission of Pakistan (SECP).
This strategic decision allows non-banking residential finance and investment finance organizations to provide loans up to 10 million rupees. Meanwhile, microfinance institutions can provide loans up to 5 million rupees, both options offered at a 5% profit rate for the first decade.
SECP states that the inclusion of NBFCs will significantly extend the reach of the “Apna Ghar” program, particularly in underserved and remote areas. These organizations have an extensive network that can effectively meet the residential needs of vulnerable communities.
A comprehensive framework has been developed to facilitate residential finance through these non-banking institutions. Furthermore, NBFCs have the ability to collaborate with banks and other financial institutions, which can ensure a robust and accessible residential financial system.
This initiative will simplify the process for potential homeowners by providing them with more flexible and diverse financial options, offering an opportunity for the development of an inclusive economic environment.