How do you take out a loan exactly? In Bangladesh, home loan procurement should come as second nature to none. Home loans are a good way to ensure you receive the necessary finance without stressing out your piggy bank.
Remember, different banks offer different preferences to its customers when it comes to home loan availability. Before we move on to knowing about the procedures behind availing a home loan, these are the three things that you must assure for yourself:
- Check out your credit score
- Know your debt to income ratio
- Save up
- Get pre-qualified
Home loans are usually provided to these 3 groups of people; a salaried person, a businessperson and a landlord/lady. For each category of people, banks provide schemes catered to their financial advantages. The amount of loan a person can take out also varies according to each group of people. In general, before taking out a home loan, you will be asked for the following things:
- 2(two) copies of passport size photographs of all intending borrowers.
- Letter of introduction from employer (for salaried individuals).
- Bank statement (for last 12 months)
- Previous loan statements (last 12 months minimum)
- Credit card statement s– if any (last 6 month)
- Salary Certificate/Trade License/ Professional certificate/ MOA/ Form – XII etc
- TIN Certificate copy
- Utility bill copy (last 6 months) for present address verification
- National ID/Passport copy
- Approved plan & plan approval letter from concerned authority
- Getting approval
- Closing date
- Loan servicing
Certain banks provide the most convenient & practical Home Loans that suit your all home financing needs. If you are a salaried individual, business person or self-employed person whose experience counts up to an average of 3 working years, then the following is your eligibility criteria:
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
For home loan availability of joint application (spouse and immediate family member), a combined Gross monthly income should be minimum BDT 40,000 per month.
Each of these steps must be followed to the T otherwise the bank might make you an auto defaulter and you will not be credible any longer from loaning from that specific bank.
Sufficient amounts of funds are required enough for being credit worthy and getting approved. If your credit or bank balance is a loan from another bank, there might be issues with your creditworthiness and either your request for a loan will be rejected or will be held on process pending.
If you are a salaried person, or a businessperson, it is advisable to seek a loan scheme from a financial institution other than a bank. They offer better schemes with better interest rates and additionally counsel with investment. Home loans can be more than just a housing pursuit and it can be an investment fountain.