BDT 66,000 Crore – The amount of home loan disbursed by banks and non-banking financial institutions (NBFI) in the fiscal year 16-17. The number alone should give you some idea of the importance of home loans in Bangladesh. The majority of people, in some form or another, take out loans to finance home construction or purchase. But before you do take out a home loan, there are a few factors you need to consider such as interest rate, fees & charges, loan tenure, and eligibility. Based on those factors, we will today do a quick home loan comparison of some of the major banks and NBFI’s of the country. And if you are a client of Bproperty, you’ll enjoy a preferential rate which will also be discussed below.
Standard Chartered Bank (SCB)
To many, Standard Chartered Bank is the leading choice for banking and loans. They have built a solid reputation for themselves as a trusted and ‘premium’ financial institution. As such, a lot of people are willing to accept higher charges, if necessary, for better customer service. And until now, SCB has delivered as promised.
SCB has the highest eligibility threshold for a home loan than any other banks in Bangladesh. For example, if you are a salaried person, your monthly salary needs to be about BDT 80,000 to be eligible for a home loan. Due to such a high eligibility criteria, not everyone can take a loan from SCB. At the moment, the interest rate is about 11.5%, depending on your profile with a 2% processing fee. You can take a home loan for 25 years at most and the highest amount you can take is BDT 1,20,00,000 (1.2 Crore). However, if you are a Bproperty client, you can take a home loan at only 10.5% interest rate with just a 1% processing fee.
Eastern Bank Limited (EBL)
EBL has been able to find a good balance between service and charge. They have become a popular choice due to their dependable service delivery, comparably low charges, and adaptation of technology.
When it comes to home loan tenure, EBL measures it a bit differently. Instead of ‘years’, they measure in ‘months’. The maximum tenure for a home loan is 300 months at EBL. Interest rate, processing fee, and even eligibility for a home loan is lower than that of SCB. As it stands, the interest rate is 10.5% and the processing fee is 1% of the loan amount. Both of these can be enjoyed at an even lower rate if you reach them through Bproperty. The reduced interest rate is just 10% and the processing fee is 0.5%. Also, any individual earning BDT 40,000 monthly is eligible for a home loan at EBL.
When thinking of getting a home loan, Bank Asia can be another great choice. They have a wonderful team of professionals who are willing to go the extra mile, and their products are very desirable. To some, the Bank Asia logo looks like a home; which coincidentally, they are known for. Their home loan is quite popular among prospective home buyers.
The interest rate in Bank Asia is a bit more than the others on this list of home loan comparison. At present, the interest rate is about 11.5% to 13%. Why the floating number? The final interest rate depends on the profile of the applicant, for which, the applicant needs to draw at least BDT 25,000 salary every month as well as have at least 2 years of working experience. As for processing fee and loan tenure, it’s the standard 1% and 25 years respectively. But if a Bproperty client applies for a home loan from Bank Asia, the interest rate would be just 10.5% with a 0% processing fee!
Another bank that has a tremendous reputation for lending is BRAC Bank. A lot of people apply to BRAC Bank for a home loan. There, they expect, as well as receive, quality and dependable service.
Any individual who earns at least BDT 35,000 monthly and has 2 years of working experience can apply and receive a home loan from BRAC Bank. The interest rate is 11% to 11.5%, which is seen by many as a quite an acceptable rate. However, the interest rate will be even less for Bproperty clients who can take a loan for a home purchase at just 10.5% interest rate.
Dutch Bangla Bank Limited (DBBL)
Known for its accessibility as well as great convenience, DBBL is one of the most popular banks in Bangladesh. The fact that an individual can open an account in DBBL with just a lump sum amount is greatly appreciated.
At the moment, DBBL offers one of the lowest interest rates (certainly the lowest in this list of home loan comparison) for a home loan, which is just 9.5%! The processing fee is also quite low, ranging from 0.5% to 1%. While some may say that the processing time is on the slower side, Bproperty’s clients can expect to be on the fast-track.
Non-Bank Financial Institution (NBFI)
Delta Brac Housing (DBH) Finance Corporation Ltd.
Outside banks, Delta Brac Housing Finance Corporation Ltd., or as many refer to it as, DBH, is a leading home financing institution. Their competitive home loan rate and specialization in home financing have made them a very popular choice among people.
Also, unlike banks in Bangladesh, DBH isn’t confined to the usual BDT 1.2 Crore home loan limit. While they would still have to adhere to the 70% limit, DBH can provide home loans up to BDT 4,00,00,000 (4 Crore). The interest rate depends entirely on the client’s profile and the processing fee is 1% of the loan amount. However, Bproperty’s clients can take out home loans at just a 11.99% interest rate with a 0.5% processing fee.
The last entry in our home loan comparison journey is the up and coming Meridian Finance. They are quickly gaining more and more popularity among NBFIs for investment financing as well as for housing. Their home loan interest rate is around 11% to 13% right now. But if you apply for a home loan as a Bproperty client, you can enjoy a reduced interest rate of just 10.5%!
Everyone needs a bit of help from time to time. And if you need a home loan to make your dream of owning a home come true, these institutions offer great deals of support and assistance. However, if you want to enjoy even more preferential service, Bproperty will help you find a home and get a better deal on the loan.