Getting a home loan approved feels like the finish line. You've collected the documents, sat through the bank meetings, and finally got the approval. But for thousands of families under the Prime Minister's Apna Ghar programme, approval has turned out to be the halfway point. According to figures presented at the government's Access to Finance Steering Committee meeting chaired by Finance Minister Muhammad Aurangzeb, and reported on 8 October 2026, banks had disbursed PKR 76 billion to 13,214 borrowers by the end of September 2026, while approved loans worth PKR 350 billion were still awaiting disbursement.
That gap is the story. Here's what it means if you're one of the people waiting, or thinking of applying.
The numbers, in context
The pace has picked up. When the National Housing Policy was approved in August 2026, the cabinet was told banks had approved around PKR 220 billion under the programme, with a little over PKR 32 billion disbursed. By the end of September, disbursements had more than doubled to PKR 76 billion. So money is moving. But approvals have grown even faster, which is why the pending pile has reached PKR 350 billion.
The wider housing finance market is also growing. The same reporting put total outstanding housing finance at PKR 426 billion at the end of September 2026, up from PKR 323 billion in June, with 231,550 borrowers. For a country where mortgages have long been a tiny share of lending, that's real movement.
What the official reports don't say is why so much approved money hasn't been released. I won't guess at the government's reasons. But from what we see on the ground with buyers, approval and disbursement are two separate stages, and the second one depends on a lot more paperwork.
Why an approved loan can still wait
In most home loan cases, the bank approves you as a borrower first, based on your income and credit. The money is only released against a specific property, once that property's paperwork checks out. That's where many files slow down:
- Title and ownership documents need to be complete and verified.
- Valuation has to be done. Under the SBP's revised rules, loans above PKR 10 million need a valuer approved by the Pakistan Banks' Association.
- The property must qualify. Unapproved schemes and unclear titles won't pass.
- For construction loans, money is usually released in stages as building progresses, not all at once.
- Insurance or Takaful for the outstanding loan amount has to be in place.
Any one of these can add weeks. And for sellers, a buyer waiting on bank money is a buyer who might not close on time, which can make some sellers nervous about accepting loan buyers at all.
If your loan is approved but not disbursed
Ask the bank exactly what's pending. Get a written list of outstanding documents or steps, not a vague "it's in process".
Get the property paperwork ready early. Title documents, fard or allotment letter, approved maps, and tax clearances. In Punjab, that now includes the new sanitation fee. Our guide on the Punjab sanitation fee and property NOC explains why.
Choose a property that's easy to finance. A ready house with clean title in an approved society moves through the bank much faster than a file or a property with complicated ownership. Check approval with our LDA approval guide.
Protect your deal with the seller. Agree a realistic timeline in writing, and make sure your token or advance terms account for bank delays.
If you're thinking of applying
The programme's revised terms, as reported earlier in 2026, offer first time homeowners up to PKR 10 million at a fixed 5% markup for up to 20 years, on a 90:10 financing ratio. Please confirm the current terms with your bank, because schemes get revised. Don't let the queue put you off. Approvals are still happening and disbursements are rising. Just go in prepared, with your property chosen and its documents in order, so your file is one of the easy ones. For the bigger picture on borrowing, read our guide to Pakistan's new home loan rules, which also covers the tougher foreclosure law you'll be signing up to.
The bottom line
PKR 350 billion in approved but unpaid loans shows both sides of Apna Ghar. Demand is huge, and banks are saying yes. The bottleneck is turning approvals into actual homes. The families who get their money fastest are usually the ones whose property paperwork is cleanest. If you have an approval in hand and need help finding a property in Lahore that a bank will finance without fuss, our team can help.
