BHBFC to cut ‘flat loan’ interest to single digit

Bangladesh House Building Finance Corporation (BHBFC) plans to lower the interest rate for its flat loan scheme to single digit as some private banks have already cut the interest rates on flat loans.

“We’ll soon send a proposal to the Bank and Financial Institutions Division of the Ministry of Finance for bringing down the interest rate for flat loan to single digit,” said a BHBFC official.

Some leading private banks and financial institutions, including BRAC Bank, Eastern Bank, Standard Chartered, City Bank, IFIC, have already brought down the interest rates on flat loans.

Talking to BSS, chairman of the board of directors of BHBFC Sheikh Aminuddin Ahmed said BHBFC cut the interest rates for house building and flat loans at the beginning of this year. The interest rate for house building was brought down to 9 percent from 12 percent while the interest rate for flat loan was fixed at 10 percent.

“We’re now thinking to adjust the interest rate with the market,” said Aminuddin Ahmed.

He said the board of directors will finalize a proposal in this regard for sending it to the Bank and Financial Institutions Division.

In April this year, BHBFC increased loan ceiling to Tk 80 lakh from Tk 40 lakh for flat purchase and reduced the interest rate to 10 percent from 12 percent for borrowers in Dhaka and Chittagong metropolitan areas. The loan ceiling in Tongi, Savar Pourasabhas and all divisional cities has been increased to Tk 60 lakh from Tk 40 lakh.

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