BHBFC offers zero equity housing loan

The state-run Bangladesh House Building Finance Corporation (BHBFC) has introduced 'zero equity' housing loans for low and middle-income people.

The housing loan came into effect from March 17. Zero equity means no down payment will be needed to avail the loan, top officials at BHBFC told the FE.

The decision came after the finance division approved an easily accessible housing loan on March 16 as proposed by BHBFC, they added.

The people except those in Dhaka, Chattogram and Sylhet metropolitan areas will be eligible for the loan at a low-interest rate (8.0 percent) under the Pollima housing loan package and at 7.0 percent under farmer housing loan package.

The lending rate, however, would be cut further as the board of directors in its meeting has approved the loan at only 5.0 percent. It is now waiting for further approval from the finance minister, according to BHBFC officials.

"The latest housing loan with zero equity has been approved to facilitate the people especially those in rural areas, farmers and low and middle-income people," Managing Director of BHBFC Debasish Chakrabarty told the FE.

He said the initiative has been taken, marking the birth centenary of Father of the Nation Bangabandhu Sheikh Mujibur Rahman and Prime Minister Sheikh Hasina's announcement about housing for all by 2021.

The ceiling of the loan will be Tk 1.65 million which could be repaid in installments for 05, 10, 15 and 20 years, he added.

People having at least four decimals of land will be able to avail the loan facility, Mr Chakrabarty said.