The Punjab government has approved a new digital model for interest-free housing for Apni Chhat Apna Ghar Scheme.According to approved digital model, Bank of Punjab will issue interest-free housing loans directly for the first time. Another 40,000 low-cost houses will be built with loans of Rs60 billion.Loan provision will be completely digital and human intervention will be reduced. Land verification from land records and money has been linked to phased construction.

Government of Punjab will provide financial security to the bank and 9 percent credit guarantee has been approved. Earlier, the loan was not issued directly by the Bank of Punjab itself.The scheme was run through the Annual Development Program (ADP). The government allocated money in the form of subsidies and funding.

With the new policy, the money will come from the bank's balance sheet and will be transferred to the digital platform (PITB).  So far, more than 100,000 families have benefited from Apni Chhat Apna Ghar scheme.  The new reforms will increase the speed and transparency of the scheme.

Credit: Independent News Pakistan (INP)