Tag Archives: Concessionary Loan

WHY IS HDB CHARGING HIGHER INTEREST RATES THAN PROFIT DRIVEN BANKS?

The Housing and Development Board’s (HDB) concessionary loan is designed to assist the lower-income group afford a HDB flat. Its interest rate is expected to be lower than those for bank loans, which are designed to make a profit mainly from the higher-income group, whose members do not qualify for the HDB’s housing loans. Ironically, banks have been offering lower interest rates for the past few years and even guarantee to charge a rate below 2.6 per cent.

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