Dhaka, Bangladesh, Nov. 20 -- The central bank of Bangladesh has raised the home loan limit to BDT 20 million from BDT 12 million in view of high prices of construction materials.

As per the revised policy, the maximum per party ceiling in respect of housing finance by the banks will be BDT 20 million, according to a circular issued by the Bangladesh Bank (BB) on Tuesday.

The BB, however, kept unchanged the debt-equity ratio at 70:30, meaning clients will be allowed to receive up to 70 per cent of the total construction cost of homes from commercial banks.

On November 07, the Association of Bankers, Bangladesh (ABB) proposed revising the limit for home loan at a meeting with the central bank.

Talking to the BBN, a BB senior official s...