Nine banks and 13 financial institutions have so far signed participation agreements with the Bangladesh Bank to refinance Tk 3 billion housing loans. The banks are National Credit and Commerce Bank, Mercantile Bank, Prime Bank, Mutual Trust Bank, Trust Bank, Southeast Bank, National Bank, Asia Bank, and One Bank. The financial institutions are Delta Brac Housing, National Housing, IDLC, United Leasing, IIDFC, Lanka Bangla, Fidelity Assets, Midas Financing, Prime Finance, International Leasing, Peoples Leasing, Phoenix Finance, and GSP Finance.
The central bank has already refinanced to Delta Brac Tk 55 lakh, which is 75 per cent of Tk 73 lakh loans disbursed by the financial institution.
The central bank in July took the Tk 3 billion refinancing scheme on housing for three years to help meet the accommodation needs of the lower and middle middle-class sections of the society.
The main objective of the scheme is to inject funds at a low interest rate into the real estate sector to reinvigorate it, Bangladesh Bank an executive director Abul Kashem told a press conference recently.
‘Real estate sector is very important as it is linked to some important industries such as cement, paint and transportation, besides employment of a huge number of day labourers,’ he said.
Service-holders or businessmen whose monthly income is less than Tk 30,000 can apply for a maximum Tk 15 lakh loan to buy an apartment of a maximum size of 1,250 square feet in the six divisional cities as well as in Tongi, Gazipur, Narayanganj, and Savar.
Borrowers would have to repay their loans within 20 years with one year grace period and the interest rate will be 10 per cent.
Banks and other financial institutions can give this loan, which will not have any hidden cost.
The central bank will give 75 per cent of the total loans with the respective banks and financial institutions will provide the remaining 25 per cent.
Financial institutions will have to recover the loans and the central bank will not take any responsibility of any default loans.
