12 banks and NBFIs ready to offer BB home loan
Thursday, 4 October 2007
Twelve commercial banks and financial institutions (FIs) have so far signed agreements with Bangladesh Bank (BB) to avail of the refinance facility under the central bank's home loan scheme, reports UNB.
The five banks and seven FIs are now ready to offer home loan at 10 percent interest, the lowest available rate in the country at present.
Bangladesh Bank Executive Director Abul Quasem apprised reporters of the progress of the central bank's home loan scheme at his office Wednesday.
"The low-cost loan is now set for disbursement. The prevailing stagnation in the housing industry would be removed with the start of disbursement of the loan," he said.
He added that the growth of housing industry would be increased, creating jobs for the low-income group.
Replying to a question, the central bank executive, who is in charge of the scheme, estimated that the monthly installment against a 20-year-loan of Tk 15,00,000 would be Tk 14,000.
In response to another question, he said the problems regarding the home loan would be identified during its operation at the field-level and the central bank would review the conditions, if necessary.
The Bangladesh Bank has undertaken the home loan scheme to meet the growing demand for housing facilities to provide own accommodation to the country's low and middle-income groups of urban people.
The scheme is also to enhance the contribution of housing sector to the national economy.
An amount of Tk 3.0 billion (300 crore) has been allocated for the scheme, of which, Tk 1.0 billion (100 crore) has been kept aside for disbursement during the current fiscal year. The rest would be disbursed during the next two financial years.
The banks signed agreements with the central bank are National Credit and Commerce Bank Limited, (NCC Bank), Mercantile Bank Limited, Prime Bank Limited, Mutual Trust Bank Limited and Trust Bank Limited.
The financial institutions are Delta-BRAC Housing, National Housing and Finance Limited, IDLC, United Leasing, IIDFC, Lanka Bangla Finance and Fidelity Assets.
More banks are also on the line to sign such agreements with the BB.
The five banks and seven FIs are now ready to offer home loan at 10 percent interest, the lowest available rate in the country at present.
Bangladesh Bank Executive Director Abul Quasem apprised reporters of the progress of the central bank's home loan scheme at his office Wednesday.
"The low-cost loan is now set for disbursement. The prevailing stagnation in the housing industry would be removed with the start of disbursement of the loan," he said.
He added that the growth of housing industry would be increased, creating jobs for the low-income group.
Replying to a question, the central bank executive, who is in charge of the scheme, estimated that the monthly installment against a 20-year-loan of Tk 15,00,000 would be Tk 14,000.
In response to another question, he said the problems regarding the home loan would be identified during its operation at the field-level and the central bank would review the conditions, if necessary.
The Bangladesh Bank has undertaken the home loan scheme to meet the growing demand for housing facilities to provide own accommodation to the country's low and middle-income groups of urban people.
The scheme is also to enhance the contribution of housing sector to the national economy.
An amount of Tk 3.0 billion (300 crore) has been allocated for the scheme, of which, Tk 1.0 billion (100 crore) has been kept aside for disbursement during the current fiscal year. The rest would be disbursed during the next two financial years.
The banks signed agreements with the central bank are National Credit and Commerce Bank Limited, (NCC Bank), Mercantile Bank Limited, Prime Bank Limited, Mutual Trust Bank Limited and Trust Bank Limited.
The financial institutions are Delta-BRAC Housing, National Housing and Finance Limited, IDLC, United Leasing, IIDFC, Lanka Bangla Finance and Fidelity Assets.
More banks are also on the line to sign such agreements with the BB.