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) 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 residential house in the cities, towns and Thana head quarters.

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

House Building Finance Corporation

1. General LoanThis loan is given to self or in joint names (husband/wife) against construction of 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 of areas covered)

Own Investment

Period

Interest

a) Guslshan, 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 other than 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 LoanThis housing loan in allowed for the construction of multi-flat building on the plot owning more than open person in developed areas in Dhaka and Chittagong cities with a limit of tk. 12 lac depending on area covered against own investment of 25% bearing interest @ 13% with repayment within 15 years.

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

3. Flat/Apartment Loan: Loan is also allowed to buy apartment/flat up to Tk. 12.96 with a covering 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 repair of the existing built-up house for want of fund.

Adjustment loan Is repayable within 15 years bearing interest upto 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 house shortage, particularly in the cities and towns, the Government approved a special housing programme for the middle and low income group 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 substantial amount in debenture to the BHFC.

Besides, Nationalize Commercial Banks, Sadharan I am and to be Corporations have also made 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 private sector with a view to provide finance in housing sector.

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