Apni Chhat Apna Ghar Program

Apni Chhat Apna Ghar Program – Transforming Lives Through Affordable Housing

Access to safe, secure, and affordable housing remains one of the major challenges for low-income communities in Pakistan. For decades, high interest rates, strict collateral requirements, limited access to credit, and rising construction costs have prevented countless families from owning a home.

To address this critical housing need, the Government of the Punjab launched the Apni Chhat Apna Ghar (ACAG) Program on 21 August 2024. The program aims to support low-income families currently living in rented houses or informal settlements by enabling them to construct their own homes through accessible and interest-free housing finance.

The ACAG Program has been designed to remove the financial barriers commonly associated with conventional mortgage financing by providing interest-free loans for house construction across Punjab. Under the program, up to 100,000 interest-free housing loans per year will be provided to eligible low-income households.

Website URL

• https://acag.punjab.gov.pk/

Key Features of the ACAG Program

• Loan amount: Up to PKR 1.5 million 
• Loan tenure: Maximum 9 years 
• Monthly installment: Approximately PKR 14,000 
• Repayment start: After 3 months from the release of the first tranche 
• No hidden charges 
• Operational subsidy: MFI operational cost and other applicable charges are borne by the Government of the Punjab 

Additional Program Features Introduced Based on Stakeholder and Beneficiary Feedback

To make the program more responsive, inclusive, and beneficiary-friendly, the following features have been added:

Loan Waiver Facility

The outstanding loan amount shall be waived in case of the borrower’s:

• Death 
• Permanent disability 

For female borrowers, if the husband passes away during the loan tenure, a widow waiver shall also be granted on the outstanding loan amount.

Early Payment Rebate

Beneficiaries who fully repay their loan before the completion of the loan tenure shall be eligible for the following rebate:

Pre-payment Period    Rebate
Within 1–3 years    20%
Within 4–6 years    10%
Repay early — save more.

Expanded Scope of Housing Support

The scope of the program has also been enhanced to support joint family housing, completion of existing structures, and improvement of residential units. Loans under the program are now admissible for the following purposes:

Eligibility Criteria

An applicant must:

1. Be a resident of Punjab and hold a valid CNIC. 
2. Own land up to 5 marla in urban areas or up to 10 marla in rural areas in Punjab for house construction. 
3. Have no criminal record. 
4. Not be a loan defaulter. 

Expected Outcomes and Benefits

The ACAG Program is expected to deliver significant social and economic benefits, including:

• Improved living conditions for low-income families. 
• Reduced overcrowding and dependence on informal settlements. 
• Enhanced access to basic amenities such as water, sanitation, and electricity. 
• Increased safety, security, and dignity for beneficiary households. 
• Positive social impact on low-income and vulnerable communities. 
• Strengthened social cohesion and community development. 
• Generation of approximately half a million direct and indirect jobs through the construction of 100,000 houses, contributing to economic growth across Punjab. 

Unlike conventional bank financing—often inaccessible to low-income families—the ACAG Program empowers households to build and own their homes free from the burden of interest. Since the first loan disbursed in October 2024, the program has rapidly scaled, reaching tens of thousands of families with transparent and transformative results.

Moreover, in addition to the existing criteria, the applicant’s age must be between 21 and 60 years, ensuring legal competence, stable earning capacity, and effective loan recovery within the approved repayment period. As per Cabinet Approval No. SO (CAB-II)1-106/2025 (Circulation) dated 13 July 2025, a loan waiver shall be granted in the event of the beneficiary’s death or full disability, covering the outstanding loan amount. Furthermore, for female applicants, if her husband passes away during the loan tenor, a widow waiver shall also be granted on the outstanding loan amount.

The program is being scaled up in collaboration with the Bank of Punjab (BOP) to ensure efficient loan processing, verification, and disbursement. BOP will provide housing finance of up to PKR 60 billion to approximately 40,000 eligible households. The Government of Punjab, through PHATA, will cover program support costs, including:

• Markup subsidy on loans at KIBOR + 1.75%, payable quarterly to BOP
• Operational cost reimbursement to BOP at 4% per annum of the outstanding loan portfolio
• Credit Loss Guarantee (CLG) equal to 9% of the total disbursed portfolio
• Reimbursement of loan outstanding amount waiver cases in the event of borrower death or permanent disability or if the borrower’s spouse is a widow during the loan tenure.
• Rebate payments for early settlement of loans
• Third-party verification costs per applicant

To date, loans worth PKR 225 billion have been disbursed to 150,000 households. Of these, 45,000 houses are currently under construction, while 100,000 have already been completed. In addition, recoveries of PKR 10 billion underscore the program’s financial sustainability and robust implementation. These achievements highlight not only the program’s scale but also its efficiency and long-term viability.

Broader Achievements and Impact

1. Home Ownership for Low-Income Families-The program has enabled low-income households to move from rental insecurity and informal living conditions toward secure home ownership.
2. Interest-Free Housing Finance at Scale-ACAG has introduced one of the largest interest-free housing finance models in Punjab, reducing reliance on costly conventional mortgage financing.
3. Improved Living Conditions-Families are gaining access to safer, more stable, and dignified housing with improved access to basic services such as water, sanitation, and electricity.
4. Financial Inclusion-The program has opened access to housing finance for families previously excluded due to high markup rates, strict collateral requirements, and limited formal credit history.
5. Reduced Financial Burden on Beneficiaries-No hidden charges, subsidized operational costs, and government-backed support have made the loan more affordable and predictable for beneficiaries.
6. Social Protection Measures-Loan waiver facilities in case of borrower death, permanent disability, and widow-related hardship have made the program more humane and responsive.
7. Flexible Housing Support-The program now supports construction of new houses, floor addition, completion of grey structures, addition of rooms and washrooms, renovation, and maintenance.
8. Economic Stimulation-Large-scale construction activity has increased demand for cement, steel, bricks, transport, skilled labour, masons, plumbers, electricians, and small contractors.
9. Job Creation-Construction of houses under the program is contributing to approximately half a million direct and indirect employment opportunities.
10. Financial Sustainability-Recoveries of PKR 10 billion reflect beneficiary ownership, repayment discipline, and the long-term sustainability of the program model.
11. Women and Family Support-Widow waiver and female applicant protection measures have strengthened the program’s inclusion and family security dimensions.
12. Scalable Delivery Model-ACAG has created a replicable model based on government support, financial institutions, MFIs, verification systems, and community-level outreach.

The ACAG Program has delivered strong results both in numbers and in impact. It has supported 150,000 households, enabled the completion of 100,000 houses, injected PKR 225 billion into housing construction, and generated major economic activity across Punjab. Beyond physical construction, the program has promoted dignity, financial inclusion, housing security, social protection, and long-term stability for low-income families.