Bond-based financing mechanism to ensure financing of housing loans
Demand for special fund for housing sector and home loans at single digit interest
A delegation of the Real Estate and Housing Association of Bangladesh (REHAB) held a courtesy call and exchange of views with Bangladesh Bank Governor Md. Mostakur Rahman. The meeting was held at the head office of Bangladesh Bank on June 7 at 4 pm, a press release said.
The meeting, led by REHAB President Dr. Ali Afzal, discussed in detail the current situation, challenges and prospects of the housing sector. In the meeting, REHAB leaders demanded the formation of a special housing fund and the introduction of long-term home loans at single digit interest to keep the housing sector dynamic.
REHAB President Dr. Ali Afzal said, “If home loans are introduced for flat buyers for the first time at low interest rates and on easy terms, the dream of owning one’s own home for the middle and lower-middle class will become a reality. At the same time, the country’s economy will also become more dynamic through the housing sector.”
Senior Vice President of REHAB Abdur Razzaque said, “To effectively decentralize Dhaka, planned housing needs to be developed at the district and upazila levels. For this purpose, it is important to expand low-interest housing loan facilities. This will make people more interested in living outside the capital.”
Also present in the delegation were REHAB Vice President-1 Mohammad Akhter Biswas, Vice President-2 Abu Khalid Md. Barkat Ullah, Vice President-3 A.F.M. Obaidullah, Vice President (Finance) Dr. Md. Harun Or Rashid and Director Tasnova Mahbub Salam. They separately presented various problems, prospects and demands of the housing sector to the Governor.
In the meeting, Bangladesh Bank Governor Md. Mostaqur Rahman said that the contribution of the housing sector to the country’s economy, employment and industrialization is very important. He mentioned that housing sector loans are one of the safest loans in the banking sector, due to which the interest rate on housing loans is relatively low compared to many other sectors. He also said that currently the interest rate on housing loans is about 2 percent lower than other loans in many cases.
The Governor also said that Bangladesh Bank is working on a bond-based financing system to ensure financing of long-term housing loans. He expressed hope that if this initiative is implemented, the opportunities for long-term financing in the housing sector will be further expanded and it will be easier for the common people to take home loans.
The meeting was held in a very cordial and fruitful atmosphere. Both sides expressed their determination to work together for the sustainable development of the country’s housing sector, increasing investment, and expanding housing facilities for the common people.
