Govt urged to lower interest rate for housing sector
Sunday, 21 September 2008
Speakers at a seminar urged the government to lower bank interest rates against loans for the country's housing sector.
The seminar on home loan was jointly organised by Gharbari, a housing magazine, and Right to Shelter, Bangladesh at the National Press Club in the city Saturday, reports UNB.
They suggested fixing the interest on loan at 5.0 per cent for buying a 500-700 sqf apartment and at 10 per cent for a 700-1500 sqf apartment instead of the existing 15 per cent.
"Unless the interest rate is lowered, the poor and middle class
people will never have access to housing rights", said Jahangir Firoz, official of an autonomous organisation, who has long been trying to buy an apartment in the city, but could not make his dream true because of the high interest rate.
Supporting the interest-cut idea, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Vice-president Abu Alam Chowdhury said the apex body of the business community would put forward the proposal to the government's highest policy-making body.
He endorsed another proposal to slash the present land and flat
registration fees down to 5.0 per cent from the existing 15-20 per cent.
Century Properties Chef Executive MGR Nasir said the Real Estate and Housing Association of Bangladesh (REHAB) had placed long ago such a proposal to the government, but the government is reluctant about it.
Land and flat registration fees in neighbouring India are only 3.0 per cent while it is zero per cent in Sri Lanka, he pointed out.
He said many foreign banks are ready to finance the housing sector in Bangladesh at lower interest rate, even at less than 3.0 per cent.
"But they would not come forward unless there is a government guarantee for repayment", he added.
Journalist Faruque Ahmed said the government allocated Tk 3.0 billion (300 crore) as housing loan to Bangladesh Bank, which is very insignificant compared to the demand.
He also criticised the central bank for its profit-making motive in sanctioning the housing loan.
Chaired by Managing Director of SD Properties Shahidullah Osmani, the function was addressed, among others, by Gharbari Editor Ershad Majumder.
The seminar on home loan was jointly organised by Gharbari, a housing magazine, and Right to Shelter, Bangladesh at the National Press Club in the city Saturday, reports UNB.
They suggested fixing the interest on loan at 5.0 per cent for buying a 500-700 sqf apartment and at 10 per cent for a 700-1500 sqf apartment instead of the existing 15 per cent.
"Unless the interest rate is lowered, the poor and middle class
people will never have access to housing rights", said Jahangir Firoz, official of an autonomous organisation, who has long been trying to buy an apartment in the city, but could not make his dream true because of the high interest rate.
Supporting the interest-cut idea, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Vice-president Abu Alam Chowdhury said the apex body of the business community would put forward the proposal to the government's highest policy-making body.
He endorsed another proposal to slash the present land and flat
registration fees down to 5.0 per cent from the existing 15-20 per cent.
Century Properties Chef Executive MGR Nasir said the Real Estate and Housing Association of Bangladesh (REHAB) had placed long ago such a proposal to the government, but the government is reluctant about it.
Land and flat registration fees in neighbouring India are only 3.0 per cent while it is zero per cent in Sri Lanka, he pointed out.
He said many foreign banks are ready to finance the housing sector in Bangladesh at lower interest rate, even at less than 3.0 per cent.
"But they would not come forward unless there is a government guarantee for repayment", he added.
Journalist Faruque Ahmed said the government allocated Tk 3.0 billion (300 crore) as housing loan to Bangladesh Bank, which is very insignificant compared to the demand.
He also criticised the central bank for its profit-making motive in sanctioning the housing loan.
Chaired by Managing Director of SD Properties Shahidullah Osmani, the function was addressed, among others, by Gharbari Editor Ershad Majumder.