BHBFC plans housing for middle, lower income groups

The Bangladesh House Building Finance Corporation (BHBFC) plans to construct houses in the khas lands (government owned fallow lands) by using modern technology for the middle and lower income groups under ‘rent to buy’ method.

“We will construct the houses in the khas land through developers. The houses will be allocated under ‘rent to buy’ method and middle and lower income groups will get priority,” BHBFC Managing Director Debasish Chakrabarty said,

He said BHBFC will construct the houses outside of the Dhaka and Chattogram metropolitan areas where developers usually do not go for constructing building.

 “We are planning for such a special programme under the ‘Presidential Order-7’ which is waiting for approval from cabinet. After getting approval, tender for hiring developers will be invited. Developers from home and abroad can participate in the tender process. They will have to construct the houses by using modern technology,” he added.

Since the selected Developers will be using modern technology, then the houses will be long lasting and the construction cost will also be very low, said BHBFC MD.

 “In traditional method, the local developers take long time, but under the modern technology, they can construct a house within a year,” he added.

He informed that the developed countries are using ‘Fast-track construction’ method to construct their houses and the construction method is low cost as well as time saving.

Debasish Chakrabarty said the house will be popular in the country as the construction cost of the eco-friendly house is very low.

 “We will construct the houses in khas lands and will ensure all facilities including sanitation and sewerage. We will allocate the houses to the people under ‘rent to buy’ method. That means, the dwellers of the house will give rent and after a certain period, they will get the ownership of the houses,” he added.

The Managing Director also provided added information regarding BHBFC who are continuing on with their offer of seven types of products for all classes of people.

The products are Nagar Bondhu, Flat Loan, Palli Ma, Abasan Unnyan Reen, Abashan Meramat Reen, Probash Bondhu and Krishak Abashan Reen.

Debasish Chakrabarty said a person can take loan of maximum Taka 10 million in Dhaka and Chattogram metropolitan areas and maximum Taka 6 million in the others areas.

 “A proposal is awaiting approval of the Finance Ministry to increase the ceiling of loans for the Dhaka and Chattogram metropolitan areas to Taka 20 million from the existing 10 million,” he added.

He said BHBFC is now offering 9 per cent interest rate for Dhaka and Chattogram metropolitan areas while 8.5 per cent for other areas.

 “BHBFC is also going to offer housing loan at 8 per cent interest outside the Dhaka and Chattogram metropolitan areas. In this regard, a proposal is awaiting approval of the Finance Ministry,” he added.

He hoped that the new rate for the areas outside Dhaka and Chattogram metropolitan areas will be approved soon and the new rate is likely to be effective from July 1 this year.

He said the trend of loan disbursement is upward since the BHBFC is providing all sorts of efforts to take the loan facilities to the grassroots level.

BHBFC has disbursed around Taka 5.50 billion in 2018-19 fiscal which was Taka 4.00 billion in 2017-18 fiscal, he said.

He said BHBFC is providing online services in all 84 branches across the country, so the borrowers can pay their instalments through mobile financial services without coming to the branches.

“We have a plan to increase the number of branches to 100 for providing better services to the customers. A proposal for opening 16 more branches is waiting for approval,” he added.