Home loan for govt employees

Tk10-50 lakh ceiling to be set
Asif Showkat Kallol

The government is considering to increase the amount of home loan for public servants from Tk1.2 lakhs to Tk10 lakh and Tk50 lakh respectively for rural and urban employees of the state.

  • Loan application and home plans 
    Photo- Bigstock

A government committee formed to recommend the revised amount of home loan facility for government employees considered setting the ceiling of flat loan for urban government employees as per demands of Dhaka and other metropolitan cities’ real estate market, official sources said. 

It has also considered fixing the ceiling of home loan facility at Tk10 lakh for state employees of rural areas. For government employees of big cities the amount “will be above Tk 50 lakh”. 

Currently, the country’s 1.5 million public servants can avail a maximum of Tk1.2 lakh loan at 10% interest for residential purposes. 

In the Dhaka City, real estate owners are selling 1200 square feet flat at Tk 50-60 lakh in the different areas.

In its first meeting on January 6 presided by Finance Division Additional Secretary Najmul Sakib, the committee home loan facilities discussed the above considerations. 
It also decided to form two technical committees for assessing impact on government exchequers of an upgraded home loan programme, and another for suggesting how the funds can be collected from different sources.

A group-wise home loan ceiling will be fixed for the 20 grades of civil servants. About 50-70% of gratitude funds won’t be provided during the retirement of the civil servants, rather those funds will be used in the public servants’ home loan programme, 

The meeting also considered that the repayment of loan will not be fixed at more than one third of salary, according to a source who participated in the meeting.   
Finance Ministry’s Senior Secretary Mahbub Ahmed told the Dhaka Tribune: “We will place the recommendations of the committee to cabinet for approval.”

Manirul Alam, an official of finance and banking division told Dhaka Tribune “The ceiling of home loan will be above Tk 50 lakh for state employees living in big cities with minimum interest rate.”

Vice President Liaquat Ali Bhuiyan of REHAB told Dhaka Tribune: “We will offer 600 and 700 square feet flat at the cost of Tk15 to Tk20 lakh for public servants if the government provides land with a low price.” 

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