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ECC Overhauls Low-Cost Housing Scheme, Lifts Loan Cap to Rs10 Million and Sets 5% Rate

The move targets broader affordable mortgage access with subsidies constrained by annual budgets.

Overview

  • Policymakers fixed a uniform 5% end-user markup for Mera Ghar Mera Aashiana and applied the rate retroactively to earlier loans.
  • The loan ceiling rose to Rs10 million alongside expanded housing-size eligibility and multi-year scaling targets under the State Bank mechanism.
  • Subsidy outlays will align with actual disbursements and remain within available fiscal space.
  • The scheme has drawn more than 10,594 applications since launch, with disbursements already in progress.
  • The ECC also cleared Rs7.289 million for an ICT component in Barani-area agriculture and approved Rs6.61 billion in budget cover for the Thar Coal Rail Connectivity Project to move indigenous coal and support energy security.