Housing loan under BB's refinancing scheme increased to Tk 2.0b
Thursday, 3 January 2008
FE Report
The Bangladesh Bank (BB) has increased the individual loan to be made available under its refinancing scheme to Tk 2.0 million from Tk 1.50 million.
Besides, the central bank will provide 100 per cent refinancing facility instead of 75 per cent as announced earlier to encourage the commercial banks and non-banking financial institutions (NBFIs) to invest in the sector.
"We have relaxed the regulations aiming to popularise the scheme," a BB senior official told the FE Wednesday, adding that the modified facility will be able to help the people belonging to the middle and lower middle class.
The BB issued a circular Tuesday in this connection and asked the managing directors or chief executives of the banks and NBFIs to follow the instructions for sanctioning housing loan under the scheme.
Earlier, the central bank relaxed its condition relating to the amount of non-performing loan aiming to involve more commercial banks and NBFIs in the scheme.
Banks or NBFIs having non-performing loan not beyond 15 per cent will now be eligible for the refinancing facilities. Earlier, the central bank allowed banks having non-performing loans equivalent to 10 per cent of their portfolio to participate in the scheme.
Under the BB's scheme, an applicant having a monthly income upto Tk 30,000, will be entitled for the loan of maximum Tk 2.0 million for the housing purpose.
The repayment tenure is 20 years maximum with one-year grace period. The rate of interest on the loan will be 10 per cent and will be calculated on a quarterly basis, according to the BB's scheme.
The people, who are living in six city corporations as well as in the municipality areas of Tongi, Savar, Gazipur and Narayanganj, will be eligible for such loan facilities.
The Bangladesh Bank (BB) has increased the individual loan to be made available under its refinancing scheme to Tk 2.0 million from Tk 1.50 million.
Besides, the central bank will provide 100 per cent refinancing facility instead of 75 per cent as announced earlier to encourage the commercial banks and non-banking financial institutions (NBFIs) to invest in the sector.
"We have relaxed the regulations aiming to popularise the scheme," a BB senior official told the FE Wednesday, adding that the modified facility will be able to help the people belonging to the middle and lower middle class.
The BB issued a circular Tuesday in this connection and asked the managing directors or chief executives of the banks and NBFIs to follow the instructions for sanctioning housing loan under the scheme.
Earlier, the central bank relaxed its condition relating to the amount of non-performing loan aiming to involve more commercial banks and NBFIs in the scheme.
Banks or NBFIs having non-performing loan not beyond 15 per cent will now be eligible for the refinancing facilities. Earlier, the central bank allowed banks having non-performing loans equivalent to 10 per cent of their portfolio to participate in the scheme.
Under the BB's scheme, an applicant having a monthly income upto Tk 30,000, will be entitled for the loan of maximum Tk 2.0 million for the housing purpose.
The repayment tenure is 20 years maximum with one-year grace period. The rate of interest on the loan will be 10 per cent and will be calculated on a quarterly basis, according to the BB's scheme.
The people, who are living in six city corporations as well as in the municipality areas of Tongi, Savar, Gazipur and Narayanganj, will be eligible for such loan facilities.