What is Tier 3 (10 Million Loan)?
Under the revised notification by the State Bank of Pakistan, Mera Ghar Mera Ashiana now includes a third tier that extends the loan limit up to PKR 10 Million (1 Crore). This tier was introduced to cater to middle-income families who need larger financing for homes in urban areas where property prices are higher.
Unlike Tier 1 (5% fixed) and Tier 2 (8% fixed), the markup rate for Tier 3 is determined by the participating bank and may vary. However, it still benefits from the government's risk-sharing facility and comes with the same favorable terms — no processing fees, no prepayment penalties, and up to 20 years tenure.
Who Should Apply for Tier 3?
- Families needing a loan between PKR 3.5 Million and 10 Million
- Home buyers in urban metro areas (Karachi, Lahore, Islamabad) where property prices exceed Tier 2 limits
- Those wanting to build a larger home on their own plot
- Applicants with higher income brackets (PKR 200K+ monthly household income)
Tier Comparison
Eligibility Criteria for Tier 3
The eligibility criteria for Tier 3 are the same as the standard MGMA requirements:
- Pakistani Citizen with a valid, non-expired CNIC
- First-time home buyer — you must not own any residential property
- Age between 21 and 65 years at the time of application
- Income documentation — salary slips, tax returns, or verifiable income proof
- Property within scheme limits — max 5 Marla / 2,720 sq ft house or 1,360 sq ft flat
How to Apply for a Tier 3 Loan
The application process is identical to Tier 1 and Tier 2. Visit any participating bank branch, request the MGMA application form, and submit your documents. Some banks also offer online applications.
💡 Important Note: Since Tier 3 markup rates vary by bank, we strongly recommend
getting quotes from multiple banks before committing. Use our calculator below to
estimate your monthly payments at different rates.
Estimate Your Monthly EMI
Use our EMI calculator to estimate monthly payments for a Tier 3 loan. Try different amounts and tenures to find what works for your budget.
Is Tier 3 available at all MGMA banks?
Most participating banks offer Tier 3, but availability and terms may vary. Check with your preferred bank directly. Major banks like HBL, NBP, UBL, and Meezan Bank typically offer all three tiers.
What is the markup rate for Tier 3?
Unlike Tier 1 (5% fixed) and Tier 2 (8% fixed), Tier 3 does not have a fixed subsidized rate. The markup rate is determined by the participating bank, typically ranging between 12–15%. Contact multiple banks for the best rate.
Can I get a Tier 3 loan for a flat/apartment?
Yes, Tier 3 loans can be used for apartments or flats up to 1,360 sq ft. The same property size limits apply across all tiers.
What is the monthly EMI for a PKR 10 Million loan?
It depends on the markup rate and tenure. At an estimated 12% rate over 20 years, the EMI would be approximately PKR 110,000/month. Use our EMI Calculator for precise calculations.
Can I apply for a Tier 3 Islamic/Shariah-compliant loan?
Yes. Islamic banks like Meezan Bank, Bank Islami, Dubai Islamic Bank, and Faysal Bank offer Tier 3 under Diminishing Musharakah (Islamic financing). See our Islamic/Shariah guide.
