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

House Building Finance Corporation

1. General LoanThis loan is given to self or in joint names (husband/wife) against the 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 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 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 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 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 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 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 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 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 private sector with a view to providing finance in the housing sector.

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1 comment for “Loaning schemes of House Building Finance Corporation (HBFC)

  1. Amanullah
    December 13, 2017 at 11:53 AM

    Nice info, i think it will be useful for me.

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