bdnews24.com :
The central bank has increased the housing loan ceiling against the backdrop of price rise of building materials.
According to a circular issued by Bangladesh Bank on Thursday, an individual now can avail up to Tk 12 million to build a house or purchase a flat. Earlier, the ceiling was Tk 10 million.
Central bank officials said the Real Estate and Housing Association of Bangladesh (REHAB) had long been demanding enhancement of the housing loan ceiling.
The circular issued by the Banking Regulation and Policy Department said a client could take the loan at 70:30 ratio, meaning the bank will provide up to 30 percent of the total value of a house or flat.
If the client wants a loan of Tk 12 million, he will have to contribute Tk 28 million on their own.
The circular said the decision came against the backdrop of rising prices of construction materials.
Bangladesh Bank Deputy General Manager Rup Ratan Pine told bdnews24.com: “The central bank always considers the interest of the clients. The ceiling of housing loan has been increased taking into consideration the present market situation.”
“This decision will be effective only for individual clients, not for any business establishment,” he added.
REHAB Vice-President Liaqat Ali Bhuiyan hailed the ceiling enhancement decision.
It will have a positive impact on the housing sector, he said and urged the government to cut interest on housing loan.
BRAC Bank Managing Director Mahbubur Rahman, however, said the decision would have little impact on the sector.
He told bdnews24.com: “There is a slowdown in housing business. In such a situation, this decision won’t make much difference.”
“But there is excess liquidity in banks. That’s why it will help us a bit,” he added.
The central bank has increased the housing loan ceiling against the backdrop of price rise of building materials.
According to a circular issued by Bangladesh Bank on Thursday, an individual now can avail up to Tk 12 million to build a house or purchase a flat. Earlier, the ceiling was Tk 10 million.
Central bank officials said the Real Estate and Housing Association of Bangladesh (REHAB) had long been demanding enhancement of the housing loan ceiling.
The circular issued by the Banking Regulation and Policy Department said a client could take the loan at 70:30 ratio, meaning the bank will provide up to 30 percent of the total value of a house or flat.
If the client wants a loan of Tk 12 million, he will have to contribute Tk 28 million on their own.
The circular said the decision came against the backdrop of rising prices of construction materials.
Bangladesh Bank Deputy General Manager Rup Ratan Pine told bdnews24.com: “The central bank always considers the interest of the clients. The ceiling of housing loan has been increased taking into consideration the present market situation.”
“This decision will be effective only for individual clients, not for any business establishment,” he added.
REHAB Vice-President Liaqat Ali Bhuiyan hailed the ceiling enhancement decision.
It will have a positive impact on the housing sector, he said and urged the government to cut interest on housing loan.
BRAC Bank Managing Director Mahbubur Rahman, however, said the decision would have little impact on the sector.
He told bdnews24.com: “There is a slowdown in housing business. In such a situation, this decision won’t make much difference.”
“But there is excess liquidity in banks. That’s why it will help us a bit,” he added.
