Thinking of purchasing an apartment and worried about the financials? Your bank saving is the first thing to rely on but what if this does not cover up much? Borrowing from your closed ones could be the secondary thought. Even this option will not be sensible for everyone, and for this group of people which door would remain open? Yes, taking a home loan is indeed one of your hopes to support the home funding.
Among several other facilities offered by banks in our country, the home loan has been one of the most popular forms of services. Side by side, Non-Bank Financial Institutions (NBFI) also offer their customized version of this facility. Regardless where you take the loans from, there are specific requirements you must fulfill. These essentials are more or less maintained as per the industry standard around the world. So, what does it take to get a home loan in Bangladesh? Let’s enlighten you regarding the initial process for availing home loans.
Be Creditworthy First
Since the lender is issuing you a considerable amount of money, they need to know whether you have the abilities to repay and follow all the terms and conditions they offer. You need to be more than of certain age and have a stable source of income to be eligible. If you are a salaried person, you must have a permanent job and fulfill the minimum salary criteria per month. Alternatively, if you are a business person, you need to show at least three years of business experience in your venture. Please note that loan amount will vary according to your income range and institution to institutions.
Know The General Guidelines for a home loan
Although the purpose of a home loan is to assist you to fulfill your needs, a lender will not finance you the entire requested amount. Loan disbursements have a limit based on the total value of the property and the amount will vary based on the credibility of the borrower. Don’t forget to satisfy those criteria before requesting for a home loan.
Additionally, you can customize the payback period and size of installment. For instance, if you prolong the installment period, your monthly payments will be low and vice versa. It may vary from lender to lender. Please keep in mind that the owner of the property must apply for loan himself and has to submit his own collateral in case of default. Otherwise, it might be difficult to get approval for a home loan.
Submit Required Documents
To further evaluate and verify your eligibility, the lender will request you to produce a couple of documents and apply other than the main application form. Since borrowers like you come from diverse background, they have segmented the verification criteria in the following manner.
Common Documents For Everyone
- Most recent personal bank statement for the last one year
- Recent Tax Clearance Certificate
- Guarantor credentials
- Copy of National ID/ Passport (applicant’s and guarantors)
- Utility bill copy
- Copies of Savings Instrument (if any)
Addition to these, you need to submit documents as per your criteria.
- Letter of Introduction (LOI)
- Latest salary statement for one year
- Trade License for last three years
- Most recent bank statement of the company for one year
- Registered partnership deed for Partnership Company
- IMOA and Certificate of Incorporation
Self Employed (Doctor, Architect and likewise)
- Certificate of membership of the respective professional association
- Declaration on self-pad along with the seal
- Certification of a professional degree
Property Related Documents
- Deed of Agreement
- RAJUK Approved Plan
- Apartment Booking Documents
- Copy of Registration (if applicable)
- All relevant legal documents of the property as per need
Let Them Process; Your Job Is Done
As you complete all the formal procedures, the lenders will contact you for verification and property valuation. Once they are satisfied with everything, they will grant your request. It might take up to a week to process and disburse you the loan. Meantime, you can relax.
Irrespective of whether you are looking for affordable apartments or high-end ones, you will be beneficial of taking a loan as it minimizes risk. Since you know how to avail loans, we will get back to you with the recent updates of home loan comparisons soon. Stay with us!