Housing loan to be available

Bangladesh Bank has increased the fund for housing refinancing scheme to Tk 700 crore to expand the opportunity to purchase flats for the low and medium income group people.
The central bank yesterday approved the proposal for increasing the fund from the present Tk 500 crore.
The demand from the low and medium income group for getting the loan has substantially increased since introduction of the scheme, said a high official of Bangladesh Bank.
The fund was earlier increased to Tk 500 crore from Tk 300 crore in April because of increased demand.
The official said Tk 480 crore from the present fund has already been disbursed as of November and the huge demands pending with the banks and financial institutions cannot be met with the remaining Tk 20 crore.
The scheme with a fund of Tk 300 crore was introduced in fiscal year 2007-08 to help small and medium income group people buy flats.
Under the scheme, a customer is provided with highest Tk 20 lakh loan at a 9 percent interest rate.
Banks and financial institutions disburse the loans from the fund provided by Bangladesh Bank.
The scheme lasts up to June 2010 and so far 3,000 customers have been provided loans under it.