ANot many people are lucky enough to have their own homes or apartments in the major cities of Bangladesh, including Dhaka City. The middle class have their dreams but not the means to fulfil them. Taking this into consideration, some banks in the country have introduced Home Loan Schemes, thereby making home ownership relatively easy.

Both private and public banks provide home loan. Bangladesh Bank disburses home loan through some private banks. Other banks providing home loan are HSBC, Standard Chartered Bank, Prime Bank, Mercantile Bank, Premier Bank, National Credit and Commerce Bank (NCC Bank), Bank Asia, Uttara Bank, Mutual Trust Bank Limited, Trust Bank, National Bank, Islamic Bank of Bangladesh and IFIC Bank.

Bank Alfalah limited, known for its high efficiency and customer-oriented services, has already been providing financial support to developers and is planning to introduce a number of schemes - home loan, car financing and credit card - some time this May.

Target Group of Customers

The target group of customers for home loan from these banks is generally both salaried employees and self-employed people who are capable of repaying the loan in time.

Criteria for Eligibility

All banks take into consideration the customer's financial capability as well as various social backgrounds.

Procedures for Bank Loan

Before a person applies for home loan, they should choose a housing company, which should be a member of REHAB. Sometimes banks stipulate that the housing company have at least 5-6 projects. The application for home loan has to be submitted along with such documents as the salary statement, TIN number, bank statement, self photographs and guarantors' photographs.

Banks provide home loan up to a certain limit which may be to the tune of a maximum of 75% of the property valuation. Banks give all the money to the housing company. The applicant pays monthly instalments to the bank. The monthly instalment is automatically debited from the account held with the borrower's bank. Interest is calculated on the basis of a 'monthly reducing balance' as opposed to an 'annual reducing balance'.

Registration of a flat will be made in the applicant's name once they have paid all the instalments. Until then ownership will rest with the bank.

If someone wants to take out a loan for constructing a building, at first they should complete the ground floor. Then they can apply for home loan along with documents like RAJUK