Banks will have to fix the interest rate for lending at 9 percent from April 1 next year as per Prime Minister Sheikh Hasina’s instruction -- a move that can go on to theoretically break down the market mechanism for funds.

Commerce Minister Tipu Munshi has pressed the need to bring down bank loan interest rate to single digit in order to boost businesses.

Finance Minister AHM Mostafa Kamal tells parliament that the government is determined to bring down the bank loan interest to the single digit.

Most of the private banks are in trouble due to their recent decision to cap interest rate on deposits at 6 percent as the state-run organisations and corporate groups are unwilling to keep funds with them at such a low rate.

Kaniz Fatima Binte Alam, a doctor, took Tk 48.50 lakh home loan at 8.5 percent interest in October last year from a lender with expertise in financing homes.