If you are planning to own the home of your choice or renovate an existing one but you don’t have sufficient money to have one. Banks operating in our country are here to provide you with a lucrative home loan to help you to fulfill your dream. But finding the right home loan in Bangladesh can be a complex one due to lack of information.
However, these days even minimum paid workers can fulfill the dream of home and this could only be possible if you are guided with the right information. Here, I’m trying to discuss the requirements by all banks and financial institutions for allocating home loans with the best possible interest rate.
Read also: City Bank Limited Home Loan
Features of Home Loan
1. Flat/Apartment Purchase / House for residence purpose
2. Takeover of existing home loan from any bank / Financial institution
3. Loan amount: BDT 500,000 to BDT 20,000,000
4. Repayment tenure of up to 25 years
5. Loan to value: up to 70% of the property value.
Who can apply for a Home Loan?
1. The applicant must be Bangladeshi/ Non-residential Bangladeshi (NRB).
2. The applicant should have a fixed source of income from Business/
Service.
I. Self-employed person with having minimum of 3 years of professional service experience.
II. Salaried person having a permanent job in Govt./Semi Govt./Autonomous/ Reputed-Private organization for minimum 3 years.
III. Businessmen having a permanent business for the last 3 years.
3. The applicant should have the capacity to repay the installment.
4. One individual must not be allowed more than one facility at the same time until the adjustment of the earlier/ previous one.
5. Applicant must be the owner of at least 03 (three) decimal of land having road facility for the construction of concerned house. Third-party property/collateral is not acceptable.
6. Minimum monthly net income should be at least 3 (Three) times of monthly installment.
Read also: IFIC Bank Aamar Bari home loan
Documents to be submitted for applying for a Home Loan.
1. Copy of NID/Passport of Applicant/Guarantor.
2. 02 copies of photograph of the Applicant.
3. 02 copies of photographs of the Guarantor.
5. e-Tin of the applicant for the loan amount above Tk.5.00 lac.
6. Drawing of proposed house duly prepared by any civil/ Diploma Engineer and approved by local authority i.e., Chairman/ Mayor of Union Council/ City Corporation.
7. Land related documents as per banks demand i.e.,
i) Recent Survey Report (mat parcha duly attested).
ii) Mutation parcha.
iii) Duplicate carbon receipt (DCR).
iv) Certified copy of CS. SA. RS. BS parcha.
v) Soil test report (in case of 4 storied building).
vi) Up to date No encumbrance certificate (NEC) of the property.
vii) Up to date Land tax Receipt. viii) Any other required documents for legal & technical assessment of the property.
8. Estimated Cost prepared by any civil/ Diploma Engineer.
9. Bank Statement for minimum last one year.
10. Personal Net worth Statement.
11. Salary Certificate (in case of a salaried person).
12. Proof of income of the rented property (if applicable).
13. Supporting papers/certificates that may stand as a proof of income of the applicant.
Procedure followed by the bank:
Before disbursing the loan, bank will follow the steps;
I) Bank official/Branch Manager will physically verify the proposed Land/Plot.
ii) Clean BLA’s (Bank Legal Advisor) opinion to be obtained mentioning chain of documents and survey report to be prepared by Bank’s enlisted surveyors.
iii) Contract point verification will be executed personally by Branch Relationship Officer & Head of Branch as per prescribed format.
Stamp, CIB & Other charges for Home Loan
All relevant charges will be borne by the borrower as per Bank’s schedule of charges.
Interest rate
Interest rate fixed by the respective bank which is controlled by Bangladesh Bank. The present rate of interest fixed by the BB is not more than 09.00% (Subject to change as per government decision).
How To Repay the loan?
Loan repayments are made in the form of an equal monthly installments (EMI) system. You have the flexibility of choosing the repayment period up to 25 years.