BHBFC flat loan fails to attract borrowers

FT ONLINE

The 'flat registration loan' of Bangladesh House Building Finance Corporation (BHBFC) has signally failed to attract borrowers.

The BHBFC is yet to receive a single application since the introduction of the loan programme this February. Top officials of the state-run house financing entity said this to media.

They, however, attributed such poor response to higher rates of flat registration fee and other formalities.

BHBFC launched the programme after some borrowers had shown interest in such lending facility.

According to the flat registration loan policy, anyone can avail the facility after meeting some certain conditions.

BHBFC Managing Director Debasish Chakrabarty acknowledged a poor response to the flat registration loan.

"The loan programme was launched a few months ago. The scenario would change in a span of time," he hoped.

Mr Chakrabarty said, "The BHBFC is taking necessary initiatives to make the loan programme popular with the borrowers."

Some people tend to skip registration as it requires necessary papers related to the owner's source of income and income tax, he observed.

Higher registration fee is seen by many as a burden as it, in some cases, discourages owners to skip flat registration, a BHBFC official said seeking anonymity.

Mr Chakrabarty elaborated on the matter of higher flat registration fees.

He said the cut in fees in fiscal year 2018-19 will impact positively in flat registration and in applying for BHBFC flat registration loans.

The ceiling of 'flat registration loan' is Tk 1.5 million and the loan repayment period is five years.