January 22, 2022
  • January 22, 2022

SC judges to get low cost home loans

By on June 27, 2021 0

Supreme Court justices, including the chief justice, will receive home loans of up to Tk 1 crore at a lower interest rate, the finance division said yesterday.

The Chief Justice and Judges will be able to borrow at a simple interest rate of 9%. The repayment term is 20 years, according to a circular, which comes into force on July 1.

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On the cost of the fund, borrowers will bear the interest rate equal to the discount rate, which is currently 4 percent. The government will pay the rest in the form of a grant.

A beneficiary can only receive the loan once and must apply for it at least one year before retiring. The government will provide the subsidy until the last day of retirement.

Borrowers can take loans from public banks, House Building Finance Corporation, Islami Bank Bangladesh, Pubali Bank, Trust Bank, Community Bank Bangladesh, and Standard Chartered Bangladesh.

However, the government can also appoint other commercial banks or financial institutions to extend the loan.

According to the notice, the loan can be secured to build houses and buy apartments anywhere in the country. The beneficiary must maintain the salary account with the bank to receive the funding.

Deposits will be deducted from the monthly salary.

The loan will have a two-year grace period if used to build homes. It will be one year for the purchase of apartments.

The government introduced the mortgage loan program for its employees in July 2018. The highest limit is Tk 75 lakh.