Government employees will get home loan as much as Tk 7.5 million at 5.0 per cent simple interest rate.
The lowest amount of home loan for them is Tk 2.0 million.
This was stated in the policy rules, issued by the Ministry of Finance (MoF) on Monday, regarding home loans for government employees through banking system.
"The interest rate of home loan will be 10 per cent. The borrower will pay loan as bank rate (presently 5.0 per cent). The government will pay the rest as subsidies," a notification of the policy said.
However, the government will be able to re-fix the interest rate of bank loan through discussion with the implementing agencies.
The fresh rate will be effective for new borrowers only.
According to the policy, government employees after five years of regularisation of their job will be entitled to the home loan.
Employees aged up to 56 years will remain eligible to secure home loan.
The tenure of the repayment of home loan is 20 years.
Both the civil and non-civil servants employed in ministries, divisions, departments, and authorities having a regular job will be eligible for the home loan.
Employees of state-owned enterprises, autonomous bodies, state-owned companies, and people employed in government enterprises which were established under separate or specialised laws will remain out of the purview of the home loan policy. A borrower will have to invest at least 10 per cent from his or her own for buying a flat or constructing a building on his own land.
In case of buying an apartment, the entire loan amount will be released at one go.
However, the loan amount will be released in four installments for the construction of a building.
Government employees, who are placed between the first and the fifth grade of national pay scale, will get Tk 7.5 million for buying apartment or the construction of building in city corporation and divisional cities.
They will get home loan amounting to Tk 6.0 million and Tk 5.0 million respectively in case of buying flat or constructing building in district towns and other areas.
Employees placed between the sixth and the ninth grades of national pay scale will get between Tk 6.5 million and Tk 3.0 million as home loan depending on buying flat or constructing building at city corporation and other areas.
The government servants, who are employed between the fourteenth and the seventeenth grades, will get between Tk 4.0 million and Tk 2.0 million.
State-owned scheduled banks and the Bangladesh House Building Finance Corporation (BHBFC) will act as the implementing agency of the home loan for government employees.
The implementing agencies will give home loan from their own fund.
