People to get Tk30 lakh loan for environment-friendly flats

People with low and mid-level income will get Tk30 lakh loan for environment-friendly flats on multi-storeyed buildings.

Another condition for availing the loan is the flat must be smaller than 750 sq feet in size.

The Bangladesh Bank issued a circular on Sunday where the Sustainable Finance Department reduced the interest rate for loans under the refinance scheme.

The interest rate will be 5% for such loans if repaid within five years, according to the circular.

The interest rate will be 5.5% for loans with a tenure of more than five years but less than eight years. In case of over eight years, borrowers have to pay 6% in interest.

Earlier, the interest rates were 7%, 7.5%, and 8% respectively. 

Banks will get the fund from the scheme at 1% less than the bank rate. So, they will pay 3% following the current rate.

As per the previous policy, borrowers were not able to apply for loans under the scheme if they had loans under other refinance schemes. The new circular has relaxed the condition to some extent. 

From now on customers can take refinance facility from Green Transformation Fund (GTF) under Sustainable Finance Department in case of Establishment of Certified Green Industry.

This loan will be distributed from the environment friendly refinancing fund of the central bank by all scheduled banks and financial institutions operating in the country, except Sharia-based banks and financial institutions.

It is said in the notification of the central bank, apart from the individual level, the banks will give loans of up to Tk30 crore to the companies interested in constructing multi-storey eco-friendly buildings. 

In this case, housing companies have to construct eco-friendly buildings with flats smaller than 750 square feet. 

In case of both individual and institutional level, there is an obligation to show an environment-friendly certificate, obtained within 90 days of applying for the loan.