General

IDA to give BHBFC Tk 800cr to expand its house loan to rural area

DHAKA, Jan 14, 2017 (BSS)-Islami Development Bank (IDB) will give Bangladesh House Building Finance Corporation (BHBFC) Tk 800 crore in loan on soft conditions to extend its housing loan programme to rural areas across the country.

"We expect IDB would disburse Tk 800 core loan before June this year. Housing loan will be given to people of lower and middle income group in rural areas for the construction of multistoried residential buildings," BHBFC chairman Sheikh Aminuddin Ahmed said.

Talking to BSS, he said the government has taken decision in principle to give IDB sovereign guarantee against the loan.

He said BHBFC sought loan support from Asian Development Bank (ADB) and IDA for implementation of a planned housing programme in rural areas as construction of unplanned houses is severely affecting rural arable land across the country.

IDA responded positive and agreed to give BHBFC the Tk 800 fund for its programme. "We are waiting for a similar response from ADB also," the BHBFC chairman added.

"Construction of unplanned structures for housing purposes is destroying a significant amount of arable land in rural areas every year. We hope that our loan programme will help stop such unplanned housing and save arable land in rural areas," he added.

According to BHBFC, it disbursed Tk 118.06 crore housing loan in the first six months of fiscal year 2016-17 (FY17).

Aminuddin said BHBFC is giving its field-level officers-employees special training to increase the standard of its loan services. As a result, realization of loans from borrowers has significantly increased, he added.

Source: Bangladesh Sangbad Sangstha (BSS)