Supreme Court justices to get home loans up to Tk 10m with 4pc interest
From now on, chief justice and other justices of the Supreme Court’s Appellate Division and High Court Division can borrow up to Tk 10 million (1 crore) as home loans with a 4 per cent interest from banks.
The Finance Division under the finance ministry recently issued a circular, signed by finance secretary Abdur Rouf Talukder, titled “Guidelines on the house building loan through banking system for the chief justice and the justices of the Supreme Court of Bangladesh”, that came into effect from 1 July 2021.
Sources said other than the chief justice, there are five justices at the Appellate Division and 92 justices at High Court Division.
Attorney general AM Amin Uddin told Prothom Alo, “It’s a timely decision for helping each of the Supreme Court’s justices to get a home.”
According to the guidelines, there will be a 9 per cent simple interest on home loans with the justices paying 4 per cent and the government subsidising the remaining 5 per cent.
State-owned scheduled banks, Bangladesh House Building Finance Corporation and five private commercials banks – Islami Bank, Pubali Bank, Trust Bank, Community Bank and Standard Bank – will provide the loan. However, the government could appoint any other commercial bank and financial institution to this end.
The house building loan implies single loan for building residential house, single loan for purchasing house with land, group loan for purchasing land and building residential house, group loan for building residential house and loan for purchasing flat.
According to the guidelines, the debtor must be the chief justice and the justice of the Supreme Court of Bangladesh and they will be eligible to apply for the home loans one year before their retirement.
The home loan should be repaid within 20 years on monthly instalment from salary.
If anyone retires with the loan, he/she will have to pay the loan at 9 per cent interest rate. The government will not subsidise it. An applicant can avail the loan for once under the guidelines, it added.
Currently, government employees, judges of the lower courts, teachers of public universities and teachers and employees of University Grants Commission (UGC) are eligible to seek home loan with a 4 per cent interest.
Other than the chief justice and other justices of the Supreme Court, they all can borrow up to Tk 7.5 million (75 lakh) in home loans.