Freedom fighters to get collateral-free home loan; policy planned

The government has planned to formulate a policy to provide collateral-free home loan for freedom fighters and their heirs.

The loan will be given under the ‘Freedom Fighters House Construction Loan Project’. Each freedom fighter will be able to avail of maximum Tk 10 lakh as loan for constructing his or her home.

The loan tenure will be of 12 years, including a nine-month grace period.

According to the Finance Ministry, landless and insolvent freedom fighters will get the priority to avail of the loan.

The government in 2016 took an initiative to give collateral-free loan to freedom fighters for constructing their homes. As part of the move, a meeting was held at the Finance Ministry on February 8 last year.

At the meeting, a seven-member committee was formed with general manager (Banking and Policy) of Bangladesh Bank Abu Farah M Naser as its head to formulate a draft policy and put forward specific proposals to this end.

The ‘Freedom Fighters House Construction Loan Project’ will be implemented by state-run Sonali Bank, Janata Bank, Krishi Bank and Rajshahi Krishi Unnayan Bank. But the government may include other private banks and financial institutions in this project taking their consent if necessary.

Under the project, maximum Tk 10 lakh will be given to one recipient while the tenure will be 12 years with a nine-month grace period. 

There will be a need for Tk 16,124 crore to implement the project.

The interest of this loan will be 5 percent. However, the loan-takers need not to pay the interest as the government will pay it on their behalf. The interest will be paid once a year.   

To ensure maximum utilisation of the loan, it will be allotted in three phases. After its grant, 40 percent of the total loan will be given first and another 30 percent will be disbursed after three months while the rest 30 percent will be handed over after three months of the second installment.

The freedom fighters who are alive can apply for the loan and there will be no age limit for applying for it.  Deceased freedom fighters’ heirs who are eligible to get the FF allowance can apply by giving their consent through a non-judicial stamp.

The freedom fighters who will avail of the loan have to place their Freedom Fighter’s Allowance in lien. There will be no need to mortgage any under-construction house to the bank.

Banks can take mortgage as per their rules while giving the loan to the freedom fighters who are not getting the Freedom Fighter’s Allowance.

For constructing the house, an applicant must have at least two decimals of land under the possession of his/her or their spouses.

Source: unb