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The Bangladesh House Building Finance Corporation (BHBFC) is set to lower its lending rate to 9.0 per cent with effect from July this year, sources said.
The state-run corporation is going to issue a circular today (Thursday) to this end.
The BHBFC has been providing loan at a rate of 10 per cent for Dhaka and Chattogram metropolitan areas and 9.5 per cent for other areas since July 2017. And before that, it was 12 per cent.
However, the rate of interest on loans for rural areas will remain unchanged at 8.5 per cent, BHBFC sources added.
The decision came at a board meeting of BHBFC following recommendation from the finance ministry.
Later, the BHBFC sent its decision to the ministry for approval on August 29 this year.
The ministry finally approved it on Sunday and asked the BHBFC to issue a circular on the issue, according to BHBFC officials.
"We have received a letter from the finance ministry and BHBFC will issue a circular on the revised interest rate on Thursday," Managing Director of BHBFC Debasish Chakrabarty told the FE.
Both the existing borrowers and fresh loan seekers can enjoy the new interest rate, said the top official.
But to avail themselves of new interest rate, existing borrowers will have to produce up-to-date papers regarding payment of loan installments, Mr Chakrabarty added.
BHBFC has set a Tk 6.0 billion loan disbursement target for fiscal year 2018-19, which is 2.0 billion higher than that of the previous fiscal year.
The amount of loan disbursed outside Dhaka and Chattogram metropolitan areas was nearly 62 per cent of total house building loans as of April.