Good news for the lower and middle class - this time a maximum loan of up to 3 million taka will be available without collateral to buy a flat in an eco-friendly multi-storey building. The interest rate for this loan has been set between 5-6 percent.

The new circular of the Sustainable Finance Department of Bangladesh Bank says that loans for buying flats have also been included under the existing 4 billion taka refinancing program in the eco-friendly sector.

The loan tenure is 10 years, including a grace period of 18 months. That is, the loan installment repayment will start after one and a half years. In addition to individuals, loans will also be given for the construction of multi-storey eco-friendly housing consisting of small units. Companies can take a maximum loan of up to 300 million taka.

The circular also says that banks will provide loans at the customer level at an interest rate of 5-6 percent. The interest rate will be capped at 5% for a term of less than five years, 5.5% for a term of less than five to eight years, and 6% for a term of more than eight years.

Under the refinancing program, banks will also provide loans for some other activities in the environment-friendly sector, such as forestry, rooftop agriculture or vertical gardening, biofloc fish farming, organic farming, cage fish farming, and vermicompost fertilizer production.

This initiative will encourage the environment-friendly housing and agriculture sectors and ensure affordable credit facilities for the lower and middle class.