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Mortgage Financing (Home Loans) Interest Rate & Facilities in Bangladesh

Today I tell you Mortgage Financing (Home Loans) Interest Rate & Facilities in Bangladesh. Mortgage Financing or Home loans is a secured loan. Where a bank or financial institution can lend you money to buy a home. It is generally offered for a longer-term time limit than other loans.

This is because the loan amount is usually high and a long-term plan is needed to repay it. The lender here considers your home/property as security.

If you fail to repay the loan, the lender will have the right to withdraw the money by selling your home/property. The repayment period for this loan is in the range of 3 to 25 years.

Monthly installments (EMI) equal to home loans are calculated by adding the principal amount and interest. Home loans include costs and fees like registration fees, processing fees, estimates, commitment charges and miscellaneous charges (documentation/advice).

The eligibility required to get a Mortgage Financing

Eligibility can vary from one lending institution to another, but there are some common requirements-

  • Any salaried, self-employed or business person with Bangladeshi nationality can apply for a home loan
  • You must be 21 years or older.
  • You should have a regular source of income to pay off your loan periodically.
  • Your professional durability and savings history will help with the fast loan approval.
  • Before applying for a home loan, be aware that you have no bad credit history until at least three months in advance.
  • If you are a salaried professional, your monthly gross income will determine the loan amount.
  • Profit earned for self-employed individuals is primarily determined by the value of the loan.

Your income?

The most important thing about getting a home loan is your monthly income. Based on which the bank will give you a loan. If your income is fixed every month, it will be easier to get a bank loan.

Because the thing that the bank will check before giving you a loan is whether you can pay the loan properly.

Whether you are in debt?

The second thing that the bank puts special importance before giving you a loan is whether you are involved in any type of loan. The bank will take a good idea about your bank balance and bank history before giving you a loan.

For those who use credit cards, the bank will decide on a loan with a clear idea of your credit balance. If you think that your credit balance duo will not be too much of an issue then you are totally wrong.

Credit card dew will have a very bad effect on your loan.

Your age?

One of the main things you should age when it comes to getting a home loan. If you are over 40 years old, the bank will think a hundred times before you give a loan. Because they cannot be guaranteed, whether you can repay the loan properly.

Therefore, it is wise to apply for a home loan between the ages of 21-35. This will give you enough time to repay the loan. You won’t even have a problem getting a large loan.

Your bank history?

Have you taken a loan from a bank before? If you have paid them in a timely manner? The bank examines these issues before giving you a loan.

If you have taken out a loan before and did not pay the loan on time, you will have a lot of trouble getting your loan. You can’t get a loan. So if you want to take a home loan or any loan, your bank history should be good.

How to get Mortgage Financing (Home Loans) very easy?

We’ve learned what factors can help you get a fast home loan. Let’s not know how to make sure you get a home loan.

  • If you have had a loan before, try clearing it before taking out a home loan.
  • If you have a partner to pay off your loan, that is, if someone in your family wants to take over the loan with you, you can get a loan immediately.
  • Your multiple income sources can also help you get a loan immediately.

Mortgage Financing (Home Loans) Interest Rate

Now we will say about the top 10 banks in Bangladesh. The bank’s home loan has already good responded to customers. These banks have become a dependency to the customers. Here is your all information by the table.

BankMax LoanMax %
House Building50 lac12.00
Bangladesh Development40 lac09.00
Janata Bank50 lac11.00
Rupali Bank30 lac09.00
AB Bank120 Lac15.50
BRAC Bank50 lac10.05
Dhaka Bank50 lac11.75
Dutch Bangla75 lac09.50
Eastern Bank120 lac10.50
IFIC Bank50 lac15.00
Islami Bank100 lac15.00
Jamuna Bank50 lac14.00
Midland Bank120 lac15.00
Meghna Bank120 lac11.00
Modhumoti Bank120 lac12.50
National Bank75 lac15.50
NCC Bank75 lac16.00
One Bank120 lac11.99
City Bank120 lac13.50
Trust Bank100 lac11.50
United Commercial120 lac15.50
Standard Chartered120 lac12.50
SONALI09.00
AL-ARAFAH16.00
BANK ASIA14.00
BCBL09.00
Exim Bank16.00
First Security13.50
ICB14.50
Mercantile14.00
MUTUAL TRUST15.00
Social Islami13.50
SOUTHEAST14.50
Standard Bank14.00
UTTARA12.00
HSBC14.00
SBI12.00
WOORI9.00

Popular Bank Details

Finally, we tell you Bangladeshi popular Bank’s Details information. These banks have already gained popularity. These banks provide regular home loans.

1 Islami Bank Mortgage financing

Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in commercial banking business based on Islamic Shari’ah with 63.09% foreign shareholding having largest branch network ( total 346 Branches) among the private sector Banks in Bangladesh.

It was established on the 13th March 1983 as the first Islamic Bank in South East Asia. It is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.

Authorized Capital of the Bank is Tk. 20,000 million and Paid-up Capital is Tk. 16,099.91 million having 33,686 shareholders as on 31st December 2018.

Nature of Goods / Items

  • Construction of the building, purchase of flats / ready-made building, extension/renovation of a house, installation of a lift, generator, substation, etc.

Mode of Investment

  • Bai-Muajjal / HPSM

Period of Investment

  • Maximum 15-years

Rate of Return

  • 15.00% or rate to be determined by the Bank from time to time.

Amount of Investment

  • For Construction, up to 60% but not to exceed Tk.10.00 million
  • purchase of Flat / Apartment up to 50% but not to exceed Tk.7.50 million.
  • purchase of Ready-made House, up to 50% but not to exceed Tk. 10.00 million.

Bank’s Participation

  • 60% for construction & 50% of the cost price for purchasing flat (but not exceeding Tk.7.50 million)

Age of Clients

  • Maximum 65-years.

Security

  • Registered mortgage on land / building / flat, Personal Guarantee(s), MSS / TDR as additional security etc.

How to Apply

  • Application Form shall have to be collected from the nearest Branch of Islami Bank Bangladesh Ltd.

2 Brac bank Mortgage financing

BRAC Bank’s Retail Banking division, established in the year 2001, provides a wide suite of products and services to cater to a multitude of retail loan requirements. The division provides home loans and car loans in addition to a wide range of other personal loans, credit cards, and cash-secured loans.

Leveraging BRAC Bank’s robust pan-Bangladesh network, the bank’s Retail Banking division enjoys strong penetration across the country, facilitating both marketing of retail loan products as well as collections. The division also possesses robust credit appraisal standards and procedures with industry-leading TAT (loan turnaround time), which stood at an average of 2 days in2017.

Salaried Individuals

  • Total job experience s minimum of 3 years & must be permanent in the current job
    Minimum income is BDT 25000
  • Salaried Individuals Total job experience s minimum of 3 years & must be permanent in current job Minimum income is BDT 25000

Documents

  • Latest 1-year personal bank statement
  • Latest Tax clearance certificate /return receipt of tax*
  • Photocopy of National ID Card / Passport
  • Letter/ Allotment Agreement/ Byna Deed for Home Loan
  • Registered ownership deed for Home Credit / Take Over Loan
  • Price quotation for Home Credit Loan
  • Letter of introduction (LOl)
  • Latest 01-year salary account statement

Businessmen / Self Employed individuals / Landlords

  • Owner / Director of Proprietorship / Partnership / Private Limited Company
  • Total business experience is a minimum of 3 years
  • Minimum income is BDT 30000

3 Eastern Bank Mortgage financing

EBL introduces the most convenient & practical Home Loan that suits your all home financing needs. Let it be for apartment purchase, home construction, extension or renovation – EBL is here with the ultimate solution for you.

With so many attractive features in it – the home you wanted to buy or to extend the existing one or renovate the same is no longer a distant dream.

Features

  • Home Loan for the purpose of Flat/Apartment Purchase/House construction / Extension / Renovation / Up-gradation/ Face uplifting / Finishing work
  • The takeover of existing home loan from any bank / Financial institution
  • Loan Amount Ranges from BDT 500,000 to BDT 12,000,000 or 70% of the property value whichever is lower
  • Competitive interest rate
  • No Processing fee for Taking over home loans from other Banks/ Financial Institutions
  • Repayment tenure of up to 25 years
  • Automatic realization of Monthly Installments
  • The early full and partial settlement allowed
  • Shortest Loan Processing Time

Age

  • Minimum: 25 Years
  • Maximum: 65 years
  • Minimum Gross Monthly Income:
    Salaried Executives: BDT 30,000
    Professionals/Self Employed: BDT 40,000
    Businessman: BDT 50,000
  • Joint applicant allowed ( spouse and immediate family member);
  • Combined Gross monthly income should be minimum BDT 40,000 per month.

Property Features

  • Loan facility for both Leasehold and freehold properties.
  • TPA (Tri Partite Agreement) allowed for up to 18 months from the date of the loan disbursement

4 Jamuna Bank Mortgage financing

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 of Bangladesh with its Head Office currently at Hadi Mansion, 2, Dilkusha C/A, Dhaka-1000, Bangladesh. The Bank started its operation from 3rd June 2001.

Customer Segment

For permanent/confirmed service holders of Govt., Semi-Govt., Autonomous Organizations, Banks, Insurance Companies, Public Limited Companies, Multinational Companies, NGOs, Employees of Private Limited Companies, acceptable to the bank, covered by a guarantee of another employee of an equal or higher grade. Teachers of Universities, Colleges & Schools (Affiliated). Professional persons like Doctors, Engineers, Chartered Accountants, and Architects.

Purpose

  • For construction & renovation of residential house/building and purchase of Flat/Apartment & any lawful purpose.

Nationality & Age Limit

  • Bangladeshi by birth.
  • Minimum age 25 years / Maximum age 55 years.
  • Loan tenor shall not exceed 60 years of age.

Minimum Income

  • Net Income should be at least Tk. 40,000/- per month. (To be substantiated by evidence)

Loan Size

  • Minimum 2.00 Lac and Maximum Tk. 50.00 Lac.

Maximum Term of Loan

  • 10 years.

Loan to price

  • Regulated by Bangladesh Bank from time to time.

Rate of Interest

  • As determined by the bank from to time.

Security/ Collateral

  • The loan shall be secured by 200% tangible asset or 100% financial asset.
  • In suitable cases, the security condition may be relaxed.
  • Hypothecation/ Lien / Registration / Mortgage of any other asset, acceptable to the bank, as feasible depending on the type of asset.
  • Personal guarantee of the applicant & applicant’s spouse.
  • Third-party guarantor shall be equal to or creditworthy than the principal applicant.

5 Midland Bank Mortgage financing

The Company was incorporated on March 20, 2013, under the Companies Act 1994 as a public company limited by shares for carrying out all types of banking activities with Paid-up Capital of Tk. 400,00,00,000 divided into 40,00,00,000 ordinary shares of Tk.10 each.

Feature

  • Home Loan for the purpose of : Flat/Apartment Purchas/House Construction / Renovation / Extension / Completion
  • The takeover of existing home loan from any Bank / Financial Institution Loan Amount ranges from BDT 500,000 to BDT 12,000,000
  • Repayment tenure of 3 years to 20 years
  • Competitive interest rate
  • No Processing fee for Taking over home loans from other Banks/ Financial Institutions
  • Early full settlement and partial settlement allowed

Age

  • Minimum: 21 Years
  • Maximum: 62 years (For Salaried), 65 Years (For Others) (at the end of loan tenor)

Minimum Gross Monthly Income

  • Govt. Employees: Minimum BDT 40,000 per Month
  • Salaried Exec. : Minimum BDT 50,000 per Month
  • Professionals/Businessperson: Minimum BDT 50,000 per Month

Tenure

  • Maximum 20 (Twenty) years

Highest Amount

  • Bank will finance a maximum 70% of property value or BDT 1.20 crore whichever is lower

6 NCC Bank Mortgage financing

Housing is one of the five prime needs of mankind. Everybody has a dream to have a dwelling house of his own. NCC Bank‘s Housing Loan with competitive rates, convenient features, and simple procedures will enable you to turn your dream into reality.

Purpose of the loan

  • Purchases of Flats/Houses
  • Construction of building on own land
  • Extension of building/floors

Who can apply

  • Confirmed Service holders with at least 3-years service experience employed by a well-reputed organization
  • Professionals with minimum 3-years experience (with adequate proof)
  • Businesspersons with minimum 3-years continuous business performance (with adequate proof).

Feature of the loan

  • Loan Amount: Tk.5,00000/-to Tk.75,00000/.
  • Loan Period: 05 years to 15 years
  • Interest Rate: Competitive Interest Rate as per Bank’s Policy and Bangladesh Bank
  • Age of the property: Not exceeding 10 years in case of purchase of ready house/building
  • Location of the property: City Corporation/Pourosava where there is a plan duly approved by a designated graduate Civil Engineer duly approved by the appropriate authority

7 One Bank Mortgage financing

OBL Home Loan is an attractive solution for your home financing need. Fulfill your dream by our Home Loan with affordable and flexible features. From apartment purchase to construction, renovation or transferring your existing home loan with other Banks/Financial institutions, we are always ready to finance.

Features

  • Loan amount ranges from BDT 5,00,000/- to BDT 1,20,00,000/-

Repayment Tenure

  • New Flat/Construction: Maximum 25 years
  • Old Flat/House: Maximum 20 years
  • Renovation Purpose: Maximum 15 years

Interest rate

  • Regular Loan 11.99%
  • Takeover Loan 10.99%
  • Minimal documentation
  • Take over the facility from another bank/financial institutions
  • Processing fee waiver on takeover loan

Eligibility

  • Any creditworthy individual having age from 18 to 70 years or retirement age whichever is earlier at loan maturity.

Professional Experience

  • Salaried: Regular/Permanent employee with a minimum of 1 year of total experience and minimum
  • 6 months’ with present employer
  • Professionals: Minimum 2 years of practice in the respective profession
  • Business Individuals: Minimum 2 years of business establishment
  • Remittance Earner: Having remittance income for at least 1 year through legitimate channel

Minimum Gross Monthly Income

  • BDT 50,000/-

8 City Bank Mortgage financing

From 1983 till date, City Bank has been a case study in evolution, has transformed over time from a traditional organization to a critically acclaimed multi-faceted institution that embraces global best practices and chooses to be at the forefront of technological initiatives.

Unlike many, the Bank’s criteria for success are not only the bottom-line numbers but also the milestones set towards becoming the most complete bank in the country.

Features

  • Loan amount ranging from BDT 5 lac to BDT 120 lac
  • Repayment tenure 1 year to 25 years
  • Financing up to 70% of property value
  • Early settlement facility
  • No hidden cost
  • Phase disbursement facility
  • Loan across the country

Processing Fee

  • 1% processing fee on any loan amount
  • No processing fee on Takeover and enhancement facilities

Eligibility

  • Age: 22 to 65 years
  • Experience: 3 years of experience in the respective field.

Income criteria

  • BDT 50,000 and above
  • BDT 30,000 (Government officials only)

9 Trust Bank Mortgage financing

Trust Bank Limited is one of the leading private commercial banks having a spread network of 111branches & SME centers, 222 ATM Booths, over 20,000 Pay points and 65 POS in 55 Branches across Bangladesh and plans to open more branches to cover the important commercial areas in Dhaka, Chittagong, Sylhet and other areas in 2018.

Purpose

  • Purchasing residential property
  • Construction of new residential house(s)
  • Taking over of House Building Loans from other Banks/Non-Banking Finance Institutions
  • Extension, Renovation/ Modification, Finishing Work of residential property

Loan Limit

  • Maximum BDT 1 crore.

Tenure

  • 1 year – 25 Years

Interest Rate

  • 11.5%

Minimum Down Payment

  • 30% (House/ apartment Purchase)
  • 40% (Construction of New House)

Customer Segments

  • Salaried Personnel, Self-employed Professional, Business Person, Landlord/ Landlady

Age

  • Min. 25 Years at the time of Loan Application
  • Max. 65 years or Up to retirement age (whichever is Lower) at the end of Loan Tenure.

Age of the property

  • Max. 20 years old at the time of underwriting. Age of the property should not more than 40 years at the end of the loan tenure.

10 United Commercial Bank

The Bank, aiming to play a leading role in the economic activities of the country, is firmly engaged in the development of trade, commerce and industry by investing in network expansion and new technology adoption to have a competitive advantage.

Features

  • Maximum loan amount of up to BDT 1.20 crores
  • Flexible repayment tenure of up to 25 years
  • Attractive variable interest rate and fees
  • No hidden charges
  • Fast approval process
  • Loan disbursement during the construction stage
  • Disbursement against the tripartite agreement and registered mortgage
  • Loan top-up and takeover facility
  • Loan facility for Non-Resident Bangladeshis (NRB)

Who are eligible?

  • Salaried executives, businesspersons and self-employed individuals with minimum 3 years of experience
  • Applicant or applicants must have a minimum aggregate income of:
  • Salaried customers: BDT 40,000
  • Self-employed professionals: BDT 60,000
  • Businessmen & Landlords: BDT 75,000
  • Non Resident Bangladeshis (NRB): BDT 80,000 equivalent

The loan applicant must be at least 25 years of aged.


Insurance Companies List With Full Facilities 2019