Thousands of people have applied for the Punjab government’s Apni Chhat Apna Ghar Program, which was launched to provide interest-free loans to low-income households for their housing plans.

“It has different segments. We will make houses on government land and also build multi-story apartments to provide houses to poor people,” Punjab Housing DG Muhammad Saif Anwar Jappa said while appearing on Rubaroo which was aired on Aaj News on Sunday.

He added that the provincial government would also partner with private societies to provide affordable houses to lower segments of society.

When asked about for whom this project was launched, he said that their survey showed that there was a shortage of 2.7 million affordable houses in the province for low-income households.

What is the eligibility criterion?

Jappa said that the provincial government would provide an interest-free loan of up to Rs1.5 million to those who have a five-marla plot in urban areas or a 10-marla plot in rural areas.

He went on to add the applicant should be from Punjab, have no criminal record, and not a defaulter.

The intended candidates can apply via the Apni Chhat Apna Ghar online portal.

For the loan disbursement, he said the provincial government is working with microfinance institutions like NRSP, Akhuwat Foundation, and RCDP. “We transfer data to them. Later, they will approach people based on the data and visit the house to do some evaluation and make recommendations. After getting approval from the Housing Department, we transfer the amount in two instalments to their account.”

The Housing DG added that the second instalment is transferred when the borrower reaches the lender.

How will the loan be returned?

Jappa stated that the microfinance institutions sign an agreement with the borrower on their part for the retrieval of the loan. “Then we register in revenue to block their account. A red entry says applicants took a loan from the government. Until you return, you cannot sell or purchase the land. This land cannot be sold until you repayment.”

Repayment

If someone has taken a Rs1.5 million loan, they would have to return it in monthly instalments three months after taking the loan. They would have to pay Rs14,000 per month.

Total target

He shared that 350,000 applications were pending and the portal is still open. “We aim for building 100,000 homes every year.”

Jappa said that 1,200 houses were under construction and loans for 3,500 applications have been approved. “By December end, we will loan to 10,000 applicants who have been verified.”

He clarified that the amount cannot be used anywhere else and the microfinance institution track that. “We have made a real-time monitoring system that every step of your construction activity is being monitored.”

He added that it was not bank financing. “We will take the amount back after nine years after which the asset’s value would be much higher.”