According to the State Bank of Pakistan, the loan structure is divided into two tiers.

In the first tier, applicants can obtain financing of up to Rs2 million at a subsidised rate of 5 per cent, while the second tier offers loans of up to Rs3.5 million at 8 per cent interest.

The maximum repayment tenure has been set at 20 years, with a markup subsidy applicable for the first 10 years.

Under the scheme, borrowers will contribute 10 per cent equity, while banks will finance up to 90 per cent of the housing cost.

Eligible applicants must hold a valid National Identity Card (NIC) and should not already own a residential unit.

Financing will be available for the purchase of a house or flat, construction on an owned plot, or the combined purchase of a plot and construction.

The scheme covers units up to five marlas for houses and 1,360 square feet for apartments.

The loans will be accessible through all commercial banks, Islamic banks, microfinance banks, and the House Building Finance Company Limited (HBFCL).

Banks will set interest rates based on one-year KIBOR plus three percent, while no processing charges will be applied.

Officials described the initiative as a historic move to expand affordable housing access for low- and middle-income citizens across the country.