The government has made it more easier for the public servants to construct their dream home by reducing home loan interest rate to 9 per cent from 10.
The new interest rate would be applicable for only new borrowers, and it will come into effect from January 1 next year.
Currently a government employee can get up to Tk 75 lakh as home loan at 10 per cent simple interest rate.
Out of 10, the borrower has to pay 5 per cent, and the rest is borne by the government as subsidies.
The disclosure was made in a notification signed by Finance Division's deputy secretary Dil Afroza on Sunday.
Though the interest rate was brought down to 9 per cent but it has yet not been determined whether a borrower will have to pay his/her part of interest as per bank rate or it would be reduced to 4.5 or 4 per cent.
An official of the Finance Ministry said a meeting would be held soon to fix the same.
Earlier on July 30, 2018, home loan policies-2018 for government employees through banking system was issued by Finance Division.