Home loan interest rate for govt servants reduced

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.