BHBFC to double loan ceiling for existing borrowers

FT ONLINE

The state-run Bangladesh House Building Finance Corporation (BHBFC) is set to double the loan ceiling for existing borrowers from July, officials said.

"The corporation has decided, in principle, to raise the loan limit for those who took out loan from it earlier," a high official said on Thursday.

The decision in this regard will be finalised at the board meeting of BHBFC next week, he added.

The official said the move was taken to facilitate the construction of incomplete houses or extension work, if any, by the existing loan recipients.

The proposed increase in the loan ceiling would take effect from July this year, he added.

The home loan recipients in Dhaka and Chattogram cities will be entitled to receive the additional loan.

BHBFC had raised the lending ceiling from Tk 5.0 million to Tk 10 million, both for Dhaka and Chattogram cities, in early 2017.

The rate of interest on such additional loans will be 9.5 per cent for the existing borrowers as against 12 per cent earlier.

According to the official data, the volume of loan disbursed by BHBFC has already surpassed its target of Tk 4.0 billion set for the current fiscal year.

BHBFC disbursed loans amounting to Tk 3.0 billion in the last fiscal year, according to the official figures.

The additional loan facilities will be applicable only after aspirant borrowers meet certain criteria, including approved housing design and availability of lands.

Besides, loan repayment performance of existing borrowers as of June this year will be taken into consideration while sanctioning additional loan to them, said Managing Director of BHBFC Debasish Chakrabarty.

He said 80 per cent of loan recipients are paying instalments accordingly.