Economic Reporter :
Amid the Covid-19 pandemic, the government is set to earmark Tk 4.0 billion for the next fiscal year to meet interest payment of home loan meant for public servants.
The government bears nearly 50-per cent interest of the loans sanctioned by commercial banks and financial institutions in favour of them.
The remaining interest is borne by an employee who takes out a home loan from a designated bank or financial institution. This allocation is, however, equivalent to the amount allocated for the outgoing fiscal year.
An official familiar with the process at finance division said the government’s burden reduced to some extent this year following introduction of single-digit interest rate in the banking system.
“We’re now paying 4.0-per cent interest as subsidy to the loanees instead of 5.0 per cent earlier,” he added.
The official said actually, they had yet to utilise the amount allocated for this fiscal year.
On average, a public servant gets Tk 25,000 as subsidy from the government’s end against his or her loan. The home loan, introduced in August 2018, allows for as much as Tk 7.5 million.
Amid the Covid-19 pandemic, the government is set to earmark Tk 4.0 billion for the next fiscal year to meet interest payment of home loan meant for public servants.
The government bears nearly 50-per cent interest of the loans sanctioned by commercial banks and financial institutions in favour of them.
The remaining interest is borne by an employee who takes out a home loan from a designated bank or financial institution. This allocation is, however, equivalent to the amount allocated for the outgoing fiscal year.
An official familiar with the process at finance division said the government’s burden reduced to some extent this year following introduction of single-digit interest rate in the banking system.
“We’re now paying 4.0-per cent interest as subsidy to the loanees instead of 5.0 per cent earlier,” he added.
The official said actually, they had yet to utilise the amount allocated for this fiscal year.
On average, a public servant gets Tk 25,000 as subsidy from the government’s end against his or her loan. The home loan, introduced in August 2018, allows for as much as Tk 7.5 million.
