SBP bars bank staff from Apna Ghar 5% home loans: only 9,717 of 60,349 approved loans paid

Staff of banks, development finance institutions (DFIs) and microfinance banks can no longer take a loan under the Wazir-e-Azam Apna Ghar housing programme from their own institution. The State Bank of Pakistan said in a letter dated 14 September 2026 that "Banks', DFIs' and MFBs' own employees are not eligible" for financing under the scheme, and told lenders to inform their branches and field staff, Nukta reported.

The bar applies with immediate effect. Everyone else who meets the scheme's terms can still apply.

Why it matters

Apna Ghar is one of the cheapest ways to buy a home in Pakistan right now. The customer pays a fixed 5%, while the government covers the rest of the markup for the first 10 years. Compare that with the State Bank's policy rate of 11.5%, and 12-month KIBOR of about 12.3%, which is what ordinary floating-rate home loans are priced on. See our KIBOR page.

Bank employees usually already get staff housing loans at concessional rates. They also sit on the other side of the desk: they process public applications. The State Bank did not publish a reason, but ARY News noted that the staff who facilitate these loans for the public are the ones now barred from applying.

The scheme in numbers

Source: ARY News and ProPakistani, 16 September 2026.

As of 4 September 2026, the programme had received 156,813 applications and approved 60,349 loans worth Rs 351.3 billion. Only 9,717 loans worth Rs 51.13 billion, about 14.5% of the approved amount, had actually been paid out. The Finance Ministry has pressed banks to turn approvals into disbursements faster.

What it means for you

If you are applying and do not work at a bank: nothing changes.

If you work at a bank, DFI or microfinance bank: you cannot use the scheme through your employer. The State Bank's wording covers financing from your own institution. Ask your HR department about the staff housing loan instead, and ask your bank's compliance team in writing whether applying at a different bank is allowed before you do it.

If your application was approved but not disbursed: follow up with your branch. With fewer than one in six approved loans paid so far, the delay is common.

Before you apply

1. Work out the instalment. Use the home loan calculator at 5% for the subsidised years, then test a higher rate for years 11 to 20, since the subsidy runs only for the first 10.
2. Check the property size. Over 10 marla, or a flat above 1,500 sq ft, does not qualify.
3. Budget for the costs the loan does not cover: stamp duty, transfer fees and property tax.
4. Keep your tax file current. Banks check your income; see the income tax calculator.