Loan 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:

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.

House Building Finance Corporation (HBFC)

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

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 the 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%

Group Loan

This housing loan 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.

Flat/Apartment Loan

The 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.

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

Condition

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%

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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