MPs to Discuss 20% Housing Loan Interest Cut
The MPs supporting the plan say many borrowers end up paying back nearly double their original loan, stretching repayments over three decades.
With property prices at their highest, they argue that lowering borrowing costs is long overdue.
The plan calls on the Ministry of Housing and Urban Planning to work with Eskan Bank to reduce what borrowers owe in interest.
It has been tabled by MPs Iman Shuwaiter, First Deputy Speaker Abdulnabi Salman, Second Deputy Ahmed Qarata, Zainab AbdulAmeer, and Dr Mahdi Al Shuwaikh.
The MPs say the bank was set up to support low- and middle-income families, not to rake in profits.
'Eskan Bank was created to offer affordable housing loans, not to make money off people trying to put a roof over their heads,' said Shuwaiter. 'Yet last year alone, it pulled in BD35.7 million in profit. The government should be helping people buy homes, not cashing in on them.'
The Public Utilities and Environment Committee reviewed the plan and has recommended its approval, saying the cut would take some strain off borrowers.
The Ministry of Housing and Urban Planning, however, says Eskan Bank doesn't charge interest as such, but applies an 'administrative fee' of up to 3 per cent on a reducing balance.
It says loan repayments are already kept in check by capping them at 25 per cent of a borrower's income, with anything left unpaid after the repayment period covered by state funds.
'The ministry remains committed to providing housing services that fit people's needs,' it said in a written response. 'Eskan Bank also gives borrowers a six-month grace period before their first payment is due, and allows instalments to be deferred for up to two years without extra charges.'
MPs backing the cut say that even with these measures, borrowers are still weighed down by hefty repayments.
'The Constitution makes it clear that the government has a duty to help people get housing,' said Shuwaiter. 'The way things are now, people are being saddled with massive debt just to own a home. A 20 per cent reduction is a necessity.'
Also read: BD322m Housing Push To Deliver 4,321 Homes By 2028
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Insider
a day ago
- Gulf Insider
Appeals Court Allows BD20,000 Gulf Verdict To Take Effect
The Supreme Civil Appeals Court has ruled that a BD20,000 judgment issued by a court in a Gulf country in a commercial dispute is enforceable in Bahrain. The decision came in response to a case filed by a Gulf-based businessman against a local contracting company over unpaid commercial transactions. The court overturned an earlier lower court ruling that had rejected the enforcement request on the grounds that the foreign judgment was not final. However, appeals judges found the ruling to be conclusive and binding, as the appeal window had passed. Lawyer Abrar Bukheet, representing the claimant, said her client had initially filed the case in his home country after a business dispute with the Bahraini company's owner. The foreign court ordered the defendant to pay nearly BD20,000 in penalties and outstanding dues. A retrial request was denied, prompting the claimant to seek enforcement through Bahrain's courts. The appeals court cited Bahrain's Civil and Commercial Execution Law, which allows enforcement of foreign judgments under reciprocal terms— provided certain conditions are met. These include confirming that Bahraini courts had no jurisdiction over the case, that due process was followed, the ruling was final, and it did not conflict with any previous Bahraini judgment. The court confirmed that the Gulf ruling met all requirements, including carrying the executory formula and the authority of res judicata. It accepted the appeal, overturned the lower court's decision, and approved enforcement of the foreign judgment within the Kingdom.
Gulf Insider
5 days ago
- Gulf Insider
Three Convicted In Riyadh For Commercial Concealment In Mobile Accessories Trade
The Ministry of Commerce has publicly named two Saudi citizens and a Yemeni resident after they were convicted of engaging in a commercial concealment scheme involving the sale of mobile phone accessories in Riyadh. According to a ruling by the Criminal Court in Riyadh, the Saudi business owner and his agent were found guilty of allowing the Yemeni resident to operate the business independently, without a foreign investment license. The resident was granted full control over the establishment's operations and was found to have financial dealings far exceeding his declared income as a sales representative, transferring illicit profits abroad. The court imposed a SR15,000 fine to be shared among the convicted individuals, revoked the business license, cancelled the commercial registration, and ordered the business to be liquidated. It also mandated the collection of all due taxes, zakat, and government fees. The convicted Saudis were banned from engaging in commercial activity, while the Yemeni national will be deported and barred from re-entering the Kingdom for work. The Ministry of Commerce reaffirmed that under the Anti-Concealment Law, penalties can reach up to five years in prison and SR5 million in fines, along with the seizure of illicit funds once a final verdict is issued.
Daily Tribune
6 days ago
- Daily Tribune
Housing Ministry Concludes Mobile Housing Finance Initiative at The Avenues
The Ministry of Housing and Urban Planning, in cooperation with the Housing Bank, has successfully wrapped up its 'Mobile Housing Finance Branch' initiative at The Avenues Mall. The five-day event drew strong interest from citizens seeking to benefit from housing finance services. The ministry said the mobile branch initiative is part of its ongoing efforts to bring housing services closer to the public and help more families access suitable homes. Similar events will continue across Bahrain, with the next stop scheduled for September 3 to 7 at City Centre Bahrain. Throughout the event, citizens met directly with ministry and Housing Bank representatives to receive instant consultations on financing options, eligibility requirements, and steps to secure a suitable home. The event also showcased the 'Bayti Real Estate' platform, which currently lists over 13,000 properties compatible with government housing finance programs, including Tas'heel, Tas'heel Plus, and the Mazaya program. Properties included apartments, houses, and residential plots across Bahrain, with virtual tours available to make browsing easier. The Housing Bank provided visitors with personalized financial advice and explained available funding solutions in partnership with participating banks. Attendees could also explore social housing projects and use the platform's digital mortgage calculator to compare financing options. According to the ministry, the mobile branch initiative is part of a series of ongoing efforts to raise public awareness about housing services. It follows three previous housing finance exhibitions at City Centre Bahrain and the Social Housing Innovation Conference and Exhibition.
