ISLAMABAD: The federal government has simplified documentation requirements for banks under the Prime Minister’s Apna Ghar Programme, reducing the number of required property documents to five in a move aimed at facilitating prospective homeowners seeking loans to construct their houses.

Following the directions of Prime Minister Shehbaz Sharif, the State Bank of Pakistan (SBP) has issued formal instructions to banks to standardise and minimise the property documentation required for housing finance under the scheme.

The Prime Minister’s Apna Ghar Programme is a nationwide housing finance initiative being implemented by the Ministry of Housing and Works to facilitate people in obtaining loans for construction of their homes.

Under the scheme, the government is providing housing loans of up to Rs10 million for the construction of houses, particularly benefiting individuals seeking financing for their first homes.

According to the revised requirements, banks can seek only five essential property documents from applicants under the housing finance scheme. These include the transfer and possession letter, site plan, mortgage permission letter and registration of mortgage, along with the prescribed documentation under the standardised requirements.

The initiative aims to remove procedural hurdles, improve access to housing finance and make the loan application process easier for eligible applicants.

Previously, complaints had been received regarding banks demanding a large number of documents from applicants, making it difficult for prospective homeowners to complete the financing process.

The latest changes are expected to provide significant relief to first-time homebuyers by reducing documentation requirements and facilitating their access to bank financing.

The move is part of the government’s efforts to promote homeownership and make housing finance more accessible to people seeking to construct their own houses.