Home loan for public servants, policy effective from 2018-19

Government employees can get loans for the construction of house or purchase of flats anywhere in the country as a policy guideline has already been formulated for providing such loan from the banking system.

Finance Minister AMA Muhith disclosed this during his speech while placing the national budget for the next fiscal in the Parliament on Thursday.

Recently, the Prime Minister has asked to raise the amount of house building loan to a reasonable level. "We have formulated a policy guideline for providing loan from the banking system bearing in mind the fact that the government employees especially the new entrants should own a flat or a house," the Finance Minister said adding that the new policy will become effective in the next fiscal year.

This loan will be provided to them at a moderate interest rate through the banking system and the interest differential will be paid by the government as subsidy to the commercial banks, he said.

"I hope this will motivate the government employees to be more proactive in delivering public services and establishing good governance everywhere," the Finance Minister said.