SC judges to get low-cost home loans

The judges of the Supreme Court, including the chief justice, will receive home loans up to Tk 1 crore at a lower interest rate, said the finance division yesterday.

The chief justice and judges will be able to borrow at a 9 per cent simple interest rate. The repayment period is 20 years, according to a circular, which comes into effect from July 1.

Of the cost of the fund, the borrowers will bear the interest rate equals to the bank rate, which is 4 per cent now. The government will pay the rest as a subsidy. 

A recipient can receive the loan only once and has to apply for it at least one year before they retire. The government will provide the subsidy grant till the last day of retirement.

The borrowers can take the loans from state-owned banks, House Building Finance Corporation, Islami Bank Bangladesh, Pubali Bank, Trust Bank, Community Bank Bangladesh, and Standard Chartered Bangladesh.

However, the government can designate other commercial banks or financial institutions as well to extend the loan.  

According to the notice, the loan can be secured to build houses and buy flats anywhere in the country. The recipient has to maintain the salary account with the bank to receive the financing.

The instalments will be deducted from the monthly salary.

The loan will carry a two-year grace period if they are availed to build houses. It will be one year for the purchase of flats. 

The government introduced the home loan scheme for its employees in July 2018. The highest ceiling is Tk 75 lakh.