The Bangladesh Bank has increased the maximum limit for home loans to Tk 20 million from Tk 12 million due to rising apartment prices and the purchasing capacity of people.
The central bank on Tuesday directed the commercial banks through a letter to follow the order, reports bdnews24.com.
The Association of Bankers Bangladesh demanded that the central bank increase the home-loan limit in a meeting on November 7.
Tuesday’s circular was issued in light of the demand, BB Deputy General Manager AKM Ahsan said.
The circular said the central bank considered the rise in prices of building materials, size of higher middleclass population, and demand for housing.
The loan to capital ratio has been kept at 70:30, which means a bank can finance up to Tk 7.0 million in a Tk 10.0 million flat.