Bangladesh House Building Finance Corporation (BHBFC) has taken a plan to disburse credit among farmers under the 'Krishak Abashan Reen' program for constructing their houses with a specific model called 'Koto System'.
"We've already got approval from the Finance Ministry in this regard. We're going to work with a private company for transferring the Koto System to the farmers," BHBFC Managing Director Debasish Chakrabarty said, reports BSS. Like Malaysia, Vietnam and Singapore, he said, the house will be popular in the country as the construction cost of the eco-friendly house is very low.
"The construction cost will reduce to Tk 800 per square feet from the existing Tk 2,000 or Tk 1500, and the house will help protect arable land," he said. Debasish said construction of unplanned structures for housing purpose is destroying arable land in rural areas every year.
He said BHBFC will provide the loan at single digit (8 percent) interest rate so that farmers can easily build their houses.
BHBFC is now offering 9.5 percent interest rate for Dhaka and Chattogram metropolitan areas while 8.5 percent for other areas. But, BHBFC has sent a proposal to the Finance Ministry to lower the interest rate to 9 percent for Dhaka and Chattogram metropolitan areas.
Debasish said the Islamic Development Bank (IsDB) is likely to start releasing Tk 1,000 crore soft loan for BHBFC to extend the housing credit program across the country, particularly in rural areas. "The formalities of releasing the loan are underway. We expect that IsDB would release the loan in October this year.
The loan will be given to middle- and lower-income people of the rural areas for construction of multi- storey residential buildings," he added.
Finance Minister AMA Muhith and IsDB President Bandar MH Hajjar signed an agreement in this regard at the 43rd annual meeting of IsDB in Tunisia in April this year.
Debasish said BHBFC will provide low-cost home financing to lower-income rural people through the IsDB assistance. He said the loan will play a vital role to implement the planned housing program in rural areas as the construction of unplanned houses is severely affecting arable land across the country.
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