House Building Finance Corporation starts shariah financing

Bangladesh House Building Finance Corporation (BHBFC) has started Islamic Shariah-based financing in the housing sector.

The organisation has introduced a new housing finance product named Manzil in this regard, according to a press release issued on Thursday.

Under this system, BHBFC would invest the money as per Shariah regulation for constructing residential buildings. The borrowers have to share earned profit to BHBFC.

The inauguration programme of Manzil was held on 25 November at the BHBFC headquarters at Purana Paltan in the capital.

Sheikh Mohammad Saleem Ullah, secretary of the Financial Institutions Department (FID), Ministry of Finance, inaugurated the product.

BHBFC Managing Director Md Afzal Karim presided over the inaugural ceremony. 

Prof Dr Md Salim Uddin, chairman, Board of Directors, BHBFC; and Prof Dr Mohammad Abdus Samad, chairman, Shariah Supervisory Committee, BHBFC, were present at the event as special guests.

The BHBFC board of directors, senior officials, FID senior executives, deputy managing directors, and general managers also attended the event. 

Md Atiqul Islam, director, Rural and Peri-Urban Housing Finance Project (RPHFP), BHBFC, delivered the welcome speech at the ceremony.

The 'Manzil' has been formulated under the RPHFP, a housing finance project of BHBFC, for the lower and lower-middle class people other than Dhaka, Chattogram, and Sylhet metro areas.

RPHFP is funded by the Islamic Development Bank (ISDB).

In his inaugural address, FID secretary described BHBFC's new product as a timely initiative in the year of the golden jubilee of the independence. He emphasised the importance of promoting a profit-oriented investment system in the light of Islamic law. He suggested ensuring the quality of service for the overall success of the organisation.