The government has doubled its house loan ceiling to Tk1 crore from Tk50 lakh now as construction costs surged in recent years.

Finance minister AMA Muhith gave its consent to a proposal of Bangladesh House Building Finance Corporation about the doubling of the loan ceiling.

The interest rates of the loan for Dhaka and Chittagong areas have also been reduced to 9.5%-8.5% from existing 10%-12%.

The BHBFC proposed to lower the interest rates to make it competitive in the market. BHBFC will issue a circular in this regard.

Five new house loan products have also been approved. They include home loans for expatriate Bangladeshis, home loans for rural people and farmers, house development and construction of houses.

Apartment loans for Dhaka and Chittagong areas will be increased to Tk90 lakh from the existing Tk40 lakh with interest rate reduced to 10% from existing 12%.

Home loan ceiling of Tongi and Savar areas and in other divisions and district will be increased to Tk40 lakh from Tk30 lakh, according to the approved summary.