*** Housing loan deductions and interest rates set for reduction | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Housing loan deductions and interest rates set for reduction

TDT | Manama

Email: mail@newsofbahrain.com

Parliament yesterday backed a proposal to lower the monthly deduction for housing services from 25 per cent of salaries down to 20 per cent, aiming to ease the financial pressures faced by Bahrainis receiving housing loans.

The MPs also called on the Ministry of Housing and Urban Planning to work closely with Eskan Bank to slash the overall interest paid on housing loans by a fifth.

This reduction would help Bahrainis manage increasingly costly properties and improve their chances of home ownership.

Pressing needs

Supporters argued that the proposal meets several pressing needs.

Chief among these is the government’s ongoing effort to provide decent housing and counter spiralling property prices, with citizens currently paying up to half the loan value in interest alone.