Housing loan soars

Staff Reporter :
Housing loans increased by 10.25 per cent as the country’s residential property market witnessed rise in consumer’s demand.
The market has already started witnessing sales increasing and the home loan interest rate reduction will further boost the buying sentiment.
Banks and financial institutions are offering long-term housing loans to customers, creating opportunities to become owners of property. Some institutions are even approving loans within 48 hours of receiving the customer’s application as the amount of default loans in the housing sector is less than in the other sector, the entrepreneurs said.
The overall size of the total housing loans portfolio of all banks was Tk85,663 crore at the end of June 2022, up from Tk77,698 crore in June 2021, an increase of Tk7,964 crore or 10.25 per cent in one year.Five banks have disbursed most of the loans in the housing sector in a year. Out of this, IFIC Bank disbursed Tk1,812 crore, Agrani Bank Tk1,102 crore, Islami Bank Tk1,190 crore, Sonali Bank Tk463 crore and Janata Bank Tk139 crore.
Alamgir Shamsul Alamin, President of Real Estate & Housing Association of Bangladesh (REHAB), said that the housing sector has created opportunities to become flat owners for service holders.
Lower-middle income groups of people can dream to become a flat or plot owner jointly or individually in the housing sector, which is secured and a potential safeguard of hard-earned money, he said.
Around 54,000 people have bought flats with loans from the financial institution Delta Brac Housing or DBH Finance. And the number of customers who bought flats or built houses with loans from IFIC Bank is 18,500.
At that time the interest rate in the banking sector was more than 15 per cent. The IFIC Bank has a separate housing loan facility called ‘Amar Bari’. The bank provides loans up to Tk 2 crore for house construction and Tk 35 lakh for the construction of semi-finished buildings.
Demand has been created among the people for housing loans. As a result, more than 1000 real estate companies have been established in the country. Bangladesh House Building Finance Corporation (BHBFC) has also been established as a government initiative.
Apart from this, specialised financial institutions have been launched to provide loan facilities for the housing sector. As a result, people are able to own a flat with a loan along with their savings.
Loans are also available for house construction. Institutions in the housing sector have now reached the capital and divisional cities as well as the district level. As a result, now, housing loans have reached the district level as well.