Who doesn’t want a place of their own? Due to such demand of people, more than 1000 housing sector institutions have been established in the country. Besides, due to the demand, banks and financial institutions have also introduced housing loan facilities. Bangladesh House Building Finance Corporation (BHBFC) has also been established as a government initiative. Apart from this, specialized 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 housing loans have reached the district level as well.

All banks and financial institutions are offering long term housing loans to customers. Some institutions are even approving loans within 48 hours of receiving the customer’s application. However, most banks and financial institutions thoroughly verify the identity of the customer and the quality of his employer before granting loans. As a result, the amount of defaulted loans in this sector is less than other sectors.

There is no accurate count of how many people have acquired flats with loan facilities. However, 54,000 people have bought flats with loans from the financial institution Delta Brack Housing or DBH Finance. And the number of customers who bought flats or built houses with loans from IFIC Bank is 18,500.

For buying a flat or building a house, a maximum loan of 2 crore rupees can be taken from the bank at the individual level. In this case the ratio of bank loan and own money is 70:30. That is, to buy a flat of 1 crore rupees, you have to own 30 lakh rupees, and the bank finances 70 lakh rupees. On the other hand, there is no ratio in the case of loans to non-banking financial institutions. These institutions fix this ratio themselves. However, the maximum interest rate for housing loans from banks is 8 percent and interest from financial institutions is 12 percent.

IFIC Bank, the first private sector bank among the banks, started offering these loans at reduced interest rates. Even in early 2015, the bank was charging 11.95 percent interest against home loans, which was reduced to 9.99 percent in December that year. At that time the interest rate in the banking sector was more than 15 percent. The bank has a separate housing loan facility called ‘Amar Bari’. The bank provides loans up to 2 crores for house construction and 35 lakhs for construction of semi-finished buildings.

Following IFIC Bank, other banks and financial institutions started following this path. As a result, my home loan status of the bank stands at 7 thousand 987 crores. 18,500 customers have taken loans. Half of them are outside the capital. The bank has distributed this loan at upazila and union level not only in the city. Apart from flats, it is also financing the construction of semi-furnished houses.

IFIC Bank Managing Director Shah Alam Sarwar told Prothom Alo, ‘We have achieved unprecedented success in housing loans. This financing is being done through our 1,200 branches and sub-branches. There is no hassle to get a loan, no extra charges. As a result, eligible customers who come to take loans do not return.

It is known that at the end of last June, the total housing loan amount of all banks was 85 thousand 663 crores. In June 2021 which was 77 thousand 698 crore taka. Housing loan has increased by 7 thousand 964 crore taka or 10.25 percent in one year. At the end of last June, the total debt of the banking sector was Tk 12 lakh 98 thousand 659 crores.

Five banks have disbursed most of the loans disbursed in the housing sector in a year. Out of this, IFIC Bank gave Tk 1,812 crore, Agrani Bank Tk 1,020 crore, Islami Bank Tk 1,190 crore, Sonali Bank Tk 463 crore and Janata Bank Tk 139 crore.

Four types of loans are disbursed in the housing sector. Commercial or Developer Loans, Personal Home Construction Loans, Personal Flat Purchase Loans and Rural Home Loans. Home construction and flat purchase loans have been introduced for government employees over the years. State-owned banks have increased lending to this sector. As a result, the debt of state-owned banks has increased in this sector.

According to research, among the top banks in disbursing loans in the housing sector, IFIC, Dutch-Bangla, The City, BRAC, Prime, Bank Asia, Mutual Trust, Standard Chartered Bank are leading. Among financial institutions, DBH, IDLC, IPDC, National Housing and Lankabangla are leading.

Financial institution DBH Finance has been providing housing loans only for 25 years. 54 thousand families have built their own housing with the loan of the company. DBH Managing Director Nasimul Baten told Prothom Alo, ‘We are giving loans on a case-by-case basis. The loan interest is now 9.5 percent. But now due to increase in rod cement prices and new DAP loan demand has decreased.