Low, middle earners to get Tk30 lakh loans

Low- and middle-income people can get Tk 30 lakh bank loans without collateral to buy flats in environment-friendly multi-storey buildings, also known as green buildings.

Loans will be given at a 5 per cent interest to buy up to 750 square feet flats.

There will be a 10-year repayment period with a grace period of 18 months, said the Bangladesh Bank’s Sustainable Finance Department in a circular on Monday.

Loans will also be given to construct multi-storey eco-friendly buildings. Housing companies can borrow up to Tk 30 crore to erect such buildings that will have flats of more than 750 square feet.

The circular said the facilities would be offered under a Tk 400 crore refinancing programme in the eco-friendly sector.

Loans would earlier be given to 55 environment-friendly initiatives under the programme. The number has been increased to 68 this time.

Besides, the interest rates on loans taken by the financial institutions participating in the scheme have been reduced to 3 per cent from 4 per cent.

Banks will give loans from the scheme at a maximum interest rate of 5-6 per cent at the client level. In this case, the maximum interest rate will be 5 per cent for loans with tenure of less than five years, 5.5 per cent for between five and eight years, and 6 per cent for more than eight years.

The interest rates, loan tenures, and grace periods will remain unchanged for corporate clients.

Moreover, banks will also provide loans under the refinancing programme for forestry (social, integrated or agricultural), rooftop farming or vertical farming or gardening, biofloc fish farming, organic farming, cage fish farming, and vermicompost fertiliser production.