REHAB Calls for Low-Interest Home Loans
Collected Photo
The Real Estate and Housing Association of Bangladesh (REHAB) has called for the formation of a special housing fund and the introduction of long-term home loans at single-digit interest rates to boost the country’s real estate sector.
Meanwhile, Bangladesh Bank is working on a bond-based financing mechanism to ensure funding for long-term housing loans, said central bank Governor Dr. Mostakur Rahman.
A REHAB delegation met the governor for a courtesy call and exchange of views at 4 pm on Sunday at the central bank headquarters. The meeting focused on the current state, challenges, and prospects of the housing sector.
The delegation was led by REHAB President Dr. Ali Afzal and included Senior Vice President Abdur Razzak, Vice President-1 Mohammad Akhtar Biswas, Vice President-2 Abu Khalid Md. Barkat Ullah, Vice President-3 AFM Obaidullah, Vice President (Finance) Dr. Md. Harun Or Rashid, and Director Tasnova Mahbub Salam.
REHAB President Dr. Ali Afzal said that if low-interest and easy-term home loans are introduced for first-time apartment buyers, the housing dreams of middle- and lower-middle-income people will become a reality. He added that the initiative would also help accelerate the country’s economy through the real estate sector.
Emphasizing decentralization to ease pressure on Dhaka, REHAB Senior Vice President Abdur Razzak said planned housing must be developed at the district and upazila levels. He added that expanding low-interest housing loan facilities is essential to encourage people to live outside the capital.
Other members of the delegation also presented various challenges and opportunities in the housing sector to the governor.
In response to REHAB’s proposals, Bangladesh Bank Governor Dr. Mostakur Rahman acknowledged the housing sector’s contribution to the economy, employment, and industrialization.
He said housing loans are among the safest categories of bank lending, which is why their interest rates are relatively lower than many other sectors. He added that housing loan rates are currently about 2 percentage points lower than those of many other types of loans.
Providing a positive outlook on long-term financing, the governor said Bangladesh Bank is working on a bond-based financing system to ensure funding for long-term housing loans. He expressed hope that this initiative would expand long-term financing in the housing sector and make home loans more accessible for the general public.
