Purpose This paper aims to examine the implications of subsidized housing loan schemes for the citizens of a metropolitan city of Pakistan where urban sprawl has changed the dynamics of the city altogether. Design/methodology/approach This study used a comprehensive methodology following qualitative research methods and conducting semi structured interviews with both loan beneficiaries and policymakers just to know about the challenges and opportunities for such schemes. The research starts with the investigation of the impact of subsidized housing loan schemes for the loan beneficiaries and government by collecting data from semi structured interviews of two main groups, i.e. loan beneficiaries and policy makers. Findings Findings of study reveal that although, there is a significant positive impact on the lives of those who availed these schemes, but procedural issues during the application process and some unfavorable outcomes in terms of significant decline in the disposable income of user of scheme and uncertainty regarding future interest rate have also been found as major concern of the beneficiaries. Furthermore, the study explores the challenges and opportunities associated with the implementation of subsidized housing loan programs. The interviews of policymakers’ unveiled critical insights into the design and administration of these schemes, with recommendations offered for improvement in policy and future program sustainability. Research limitations/implications This paper presents a valuable contribution to the field of housing policy especially related to the subsidized housing loan schemes and offers a foundation for further research in the future and policy refinement in the quest for affordable and sustainable housing solutions. It emphasizes the need for targeted, well-structured housing loan schemes and an inclusive institutional environment to ensure equitable access to housing and foster inclusive development. Originality/value This paper presents a valuable contribution to the field of housing policy especially related to the subsidized housing loan schemes and offers a foundation for Pakistan. It emphasizes the need for targeted, well-structured housing loan schemes and an inclusive institutional environment to ensure equitable access to housing and foster inclusive development.
Sarwar et al. (2025) studied this question.