Bangladesh Slashes Interest Rate On Middle Class Housing Loan Program

May 15, 2008 4:01 p.m. EST

Dhaka, Bangladesh (AHN) - The central bank of Bangladesh on Thursday slashed interest rates on its housing sector refinancing program to 9%, aiming to popularize the plan.

"We have relaxed the regulations aiming to popularize the scheme," a senior official of the Bangladesh Bank (BB), the country's central bank, told AHN in Dhaka, adding that the relaxation will primarily help the middle and lower class.

The central bank has also expanded the program to include applicants with a monthly income of up to $729.07 USD (50,000 BDT) from $437.44 (30,000). Applicants can apply for up to $29 million (2 million) in loans for housing. The BB took the move after the program launched in July 2007 to a poor response.