Low-interest home loans get huge response

Different banks and non-bank financial institutions (NBFIs) offering low-interest home loans for the housing and real estate sector say they received a good response from people attending the REHAB Fair ’21 in Dhaka.

The lenders said they offered loans at 7.5-7.99 per cent interest on the condition that the land or flat is kept mortgaged until repayment. Realtors said this boosted the sales of plots and apartments.

Talking to The Business Post, Relationship Manager of Consumer Asset, Consumer Division at IDLC Finance Limited Md Abdur Rahman said they provide finance up to 80 per cent of property value for residential and commercial apartments. “Regularly, we take 8.5 per cent interest for home loans but now we are taking 7.99 per cent marking the fair that will continue until December 27,” he said.

He informed that they received requests for a total of Tk 50 crore loans in the first three days of the fair. “We usually disburse Tk 100 crore home loans every month on average. We provide loans to job holders who earn a minimum Tk 25,000 per month,” Rahman said.

The Business Development Manager of Retail Banking Division at Bank Asia Md Shahabuddin told they were providing home loans at 7.5– 7.99 per cent interest.

He said they are providing home loans up to Tk 2 crore, or 70 per cent of the total assets price. These loans can be repaid over a period of 25 years. “We will conduct field visits before making any final decision,” he said. 

According to the Real Estate and Housing Association of Bangladesh (REHAB), a total of 220 stalls have been set up in the five-day REHAB Winter Fair at Bangabandhu International Conference Centre in Dhaka where 13 finance investors took part.

“Anyone looking for easy home loans should come to City Bank. Our wide range of options is designed to cater to every home financing need, be it purchasing a new flat or constructing a house. We have also Shariah-based financing facility here,” head of developer relationship at City Bank AKM Roknuzzaman Khandker said.

He said their financing amount ranges from Tk 5 lakh to Tk 2 crore which should be up to 70 per cent of property value. The loans can be repaid in up to 25 years. “To be eligible for our home loan, a government employee has to earn minimum Tk 30,000 a month while for others the amount is Tk 50,000. Non-Resident Bangladeshis have to provide document proving their monthly income of at least Tk 1 lakh,” he added.

Head of mortgage and developer relationship management at Brac Bank Md Sirajus Saleken said they offer home loans at 7.5 per cent interest at the Rehab Fair.

“We provide home loan to the clients whose monthly salary is between Tk 20,000 and Tk 1.30 lakh. However, the number of home loan seekers is gradually increasing due to a rising spending capacity of the people and it is positively impacting the real estate sector,” he said.

Dutch-Bangla Bank Limited was providing home loan at 7.5 per cent interest and offering takeover loan at 7 per cent interest. It is also taking loan processing fees up to 0.50 per cent. 

Meanwhile, Mutual Trust Bank Ltd offered zero processing fees for takeover loans. The bank offered Tk 5 lakh to Tk 2 crore in loans with a repayment period of three to 25 years.

LankaBangla Finance Ltd was offering home loans at 7.99 per cent interest.

Roisuddin Khan from Badda said he was visiting different stalls at the fair to book a medium-sized flat. “I will take home loan if I get a flat at a reasonable price,” he said.