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Home loan under easy term for govt employees from Nov

Published : Monday, 3 September, 2018 at 12:00 AM  Count : 129

The government has decided to offer public servants home loan on five per cent interest rate from November.
For this the government employees can apply for a home loan from October, Finance Ministry sources told the Daily Observer recently. The sources said a working committee for house building for government employees has prepared a common application form for all public servants. The applicants should provide their national identity cards, job certificates, salary receipts, and income from prospective pensions, bank statements and if there is any bank loan drawn by them, the sources added.

Abdur Rauf Talukder, Acting Secretary of the Finance Division said the discussion with the concerned banks and financial institutions is going on for the quick implementation of the loan scheme. "It will be implemented very soon," he said.
According to Finance Ministry sources, the Ministry will sign Memorandum of Understanding (MoU) with five government institutions. These are Sonali Bank, Agrani Bank, Janata Bank, Rupali Bank and Bangladesh House Building and Finance Corporation.

Meanwhile, the Finance Division is going to form a separate cell this month to implement the small interest rate loan scheme. However, the age and other factors of the applicants will be taken into consideration from July 1 this year.
Applicants under grade 18 to grade 20 will be divided into five groups. They will get house building loans of Tk 3,000,000 each to build a house in Dhaka, Tk 2,500,000 in district towns and Tk 2,000,000 for the other areas of the country.

Sources said currently there are 700,000 government employees who will be in service for the next 15 years. The applicants will be 70,000, every year, if 10 per cent of them get approval for the loan facility, the total loan every year will be Tk 280 crore, if the loan averages Tk 4,000,000 per person depending on the area of their residence. According to the Finance Division, there are currently 477,000 Class I officers, 131,000 Class II, 325,000 Class III and 267,000 Class IV employees in the country.

The government officials who would require housing oan above the government-fixed ceiling could, however, take additional loan from the commercial banks and financial institutions on the basis of their relationship and negotiations with the lenders but won't get interest subsidy for the additional amount, they added.

Motiar Rahman, Join Secretary of the Finance Ministry told the Daily Observer, "Many government employees will not be able to take this loan due to many factors." According to the scheme, a government employee would get Tk 30 to Tk 75 lakh loan on five per cent interest rate only instead of Tk 120,000 on 1.2 per cent interest rate as home loan given to government employees since 1982.

Real Estate and Housing Association of Bangladesh (REHAB) sources said since 2010 housing sector of the country was going through a crisis as a huge number of flats and plots, built at that time by unprofessional people, remained unsold. Eight to ten thousand plots and flats are awaiting buyers now in the capital and elsewhere in the country, they said.

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