Freedom fighters likely to receive interest-free home loan

Freedom fighters are likely to get interest-free house-building loans keeping their government-provided monthly allowance lien to banks, officials said.
In this case, the government will provide the interest amount to banks from its own coffer, considering their contribution to independence of the country in 1971, they added.
A committee in the central bank is preparing a guideline in this regard, which, at this preliminary stage, considered that the house-building loan amount can range between Tk 0.85 million and Tk 1.0 million for each freedom fighter.
Presently, some 179,339 freedom fighters get Tk 10,000 a month as allowance from the government to maintain their living cost.
Officials said five state-owned banks-- Sonali, Agrani, Janata, Bangladesh Krishi Bank, and Rajshahi Krishi Unnayan Bank-- will disburse the loans keeping lien the government-provided allowance of the freedom fighters.
The capital amount of the house loan will be deducted in monthly installment from the allowance. The tenure of house loan will be 10 years considering the present age of freedom fighters.
A simple interest at the rate of 5.0 per cent to 7.0 per cent will be calculated on the loan which the government, instead of freedom fighters, will give to the banks.
The loan will be disbursed in three installments having a nine-month grace period for building houses.
Officials said since the government-provided allowance will be put on lien for the loan, the committee is considering that the house to be built with the loan would not be kept as mortgage.
Contacted over phone Tuesday, Bangladesh Bank general manager and convener of the committee Abu Farah Md Naser told the FE that they have been waiting for some info relating to the number of living freedom fighters who want to get house loan and who will be given priority if the size of fund is inadequate.
He said the ministry of liberation war affairs has sought information from concerned deputy commissioners and upazila nirbahi officers in this regard.
Asked whether freedom fighters can get totally interest-free house loan, he said, it is possible only if the government agrees to provide the interest amount to the banks from its budgetary allocation.
 "It is also in our consideration," Mr Naser said.
Replying to a query regarding the size of the loan amount he said if the amount becomes big, the repayment installment will be also big.
 "They get Tk 10,000 as monthly allowance. If the repayment installment becomes big, they won't be able to pay after meeting their other expenses," Mr Naser said.
Asked when the report will be ready and the loan will be available to freedom fighters, he said a preliminary report was submitted to the finance ministry in the past.
The ministry is now waiting for a full-fledged report for taking further decisions.