Loaning schemes of House Building Finance Corporation (HBFC)

There are various types of loaning schemes House Building Finance Corporation (HBFC) all of them are described below:

House Building Finance Corporation (HBFC)

The Bangladesh House Building Finance Corporation (HBFC)  (Official Website) was established in 1973 with a view to developing housing in the country to solve the acute problem.

The main objective of the corporation is to provide financial assistance for the construction, repair, and remodeling of a residential house in the cities, towns, and Thana headquarters.

The corporation has various types of loaning schemes at present. These are as follows:

1. General Loan
2. Group Loan
3. Flat/Apartment Loan
4. Adjustment Loan
5. Loan for semi-pucca house

1. General Loan: This loan is given to self or in joint names (husband/wife) against the construction of a self-contained unit of a house in developed and planned areas in Dhaka and Chittagong cities and other areas as detailed below:

Areas	Maximum Limit (depending on areas covered)	Own Investment	Period	Interest
a) Gulshan, Banani, Baridhara, Dhanmondi, Uttara, DOHS residential areas in Dhaka city.	25 Lac	30%	15 yrs.	15%
b) Agrabad, Kulsi area in Chittagong city.	20 Lac	30%	15 yrs	15%
c) Dhaka city is other than the areas specified above.	20 Lac	30%	15 yrs	15%
d) Dhaka city where road link is below 15 feet wide.	15 Lac	20%	15 yrs	13%
e) Old District town New District town	9 Lac 7 Lac	20% 20%	15yrs 15yrs	10% 10%

2. Group Loan: This housing loan in allowed for the construction of a multi-flat building on the plot owning more than the open person in developed areas in Dhaka and Chittagong cities with a limit of Tk. 12 lac depending on the area covered against own investment of 25% bearing interest @ 13% with repayment within 15 years.

Besides Dhaka and Chittagong, the loan is also given in Narayangonj, Sylhet Sadar, and divisional headquarters up to Tk. 4 lac depending on the area covered with its own investment of 25% bearing interest @ 10% with repayment within 15 years.

3. Flat/Apartment Loan: Loan is also allowed to buy an apartment/flat up to Tk. 12.96 with a coverage area of 1800 sq ft for a period of 15 years bearing interest @ 13% p.a.

4. Adjustment Loan: Adjustment loan is allowed to those who could not complete the building as per plan/estimation or who could not undertake the repair of the existing built-up house for want of fund.

Adjustment loan Is repayable within 15 years bearing interest up to Tk. 15 lac @ 13% p.a.  and above Tk. 15 lac @ 15 % p.a.

Loan for small unit multi-storied building

(for middle/low middle class)

In order to ease the housing shortage, particularly in the cities and towns, the Government approved a special housing program for the middle and low-income groups who could get the desired loan with nominal investment.

This loan I allowed for small unit multi-storied building up to 1000 sp.ft. per unit as per the under-noted system:

	Celling	Period	Interest
Old district headquarters (up to 4000 sq.ft.)	9 lac	20 yrs.	10%
New district headquarters And Sreemongal Sadar P.S. (up to 4000 sq. ft.)	7 lac	20 yrs.	10%
(in Divisional and district headquarters – outside Dhaka/Chittagong cities)	2.70 lac	15 yrs.	10%

5. Loan for semi-pucca houses

With a view to augmenting the resources of the House Building Finance Corporation, Bangladesh Bank invested a substantial amount in debenture to the BHFC.

Besides, Nationalize Commercial Banks, Sadharan I am and to be Corporations have also made a huge amount of debenture financing to the HBFC.

The Corporation is a unique credit institution in the country which is financing housing projects in the private sector.

IN addition to HBFC, various financial institutions have been set up in the private sector with a view to providing finance in the housing sector.

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