Loan transfer facility at BRAC Bank at 9 percent interest, no additional cost

BRAC Bank has announced the purchase (takeover) of personal loans (personal loans) and housing loans (home loans) in any bank or financial institution at low interest. Under this special offer, customers will have to pay 9 percent interest in the first year. Also there is no cost to transfer the loan.

Basically BRAC Bank has taken this initiative to increase the status of retail or retail loans. The bank is giving this opportunity till next December. Application for this can be done by giving name-identity in any branch or website.

Bank sector officials said that customers who have high interest personal and housing loans in other banks will get the opportunity to transfer their loans to BRAC Bank at 9 percent interest without any cost. As a result, their monthly installment costs will be reduced to a large extent.

It is known that BRAC Bank's individual (retail) deposits are Tk 53 thousand crores, although the total deposits have exceeded Tk 1 lakh crore. On the other hand, consumer debt is around 14 thousand crores.

According to the bank, through the takeover process, customers will get an opportunity to transfer the amount of their existing loans as well as apply for additional or 'top-up' loans if required.

Earlier, Bank Asia also announced to buy car and housing loans at 9 percent interest. Prime Bank, IFIC Bank, Dutch Bangla Bank are also buying loans from other banks.

HOW INTEREST RATE TO BE DETERMINED
Currently, the interest rate of personal and housing loans varies from 9 to 12 percent depending on the bank. Under this special facility of BRAC Bank, the loan will be available at 9 percent fixed interest for the first year. However, from the second year, the interest rate will be variable according to the type of loan. In that case, the new interest rate will be determined by adding a margin of 1 percent to the base rate determined by the bank. The interest rate will change every 1 year after the first year in case of personal loan and every 6 months after the first year in case of home loan.

If a customer transfers a loan to BRAC Bank in November this year, then his interest rate will remain fixed at 9 percent for the first year i.e. till October 2027. If BRAC Bank's base rate is 8.80 percent in October 2027, then its loan interest rate for the next term will be 9.80 percent (8.80 percent base rate + 1 percent margin).

Bank sector officials said that customers who have high interest personal and housing loans in other banks will get the opportunity to transfer their loans to BRAC Bank at 9 percent interest without any cost. This will reduce their monthly installment cost to a great extent, which will help keep the entire family in peace.