Purchasing a flat in Dhaka is a serious investment, and for most, a home loan is the ideal financing method. If you’re searching for a flat for sale in Uttara, Middle Badda, or the Baridhara Diplomatic Zone, learning about the home loan process can make your property-buying experience seamless and hassle-free.
This BestBari Home Loan Guide will walk you through the process of getting a home loan in Bangladesh.
1. About Home Loans in Bangladesh
A home loan is a long-term loan facility extended by financial institutions and banks to assist buyers in buying available flats in Dhaka and other urban areas. The loan is paid back in monthly installments for a period of time, typically 10 to 25 years.
Banks evaluate several aspects like income, employment, and credit history prior to sanctioning a loan. Certain banks also tie up with real estate developers and agents to provide special mortgage deals.
2. Home Loan Eligibility Criteria
To be eligible to apply for a home loan in Bangladesh, you mustsatisfy the following criteria:
- i) Age: Typically 21 to 65 years
- ii) Income: At least BDT 30,000 — BDT 50,000 monthly
iii) Employment: Stable business or job history of not less than 2 years
- iv) Credit Score: Good credit history in order to secure loan sanction
- v) Down Payment: All banks ask for a 20%-30% down payment on the flat price in Dhaka
3. Selecting the Right Lender
There are some banks and financial institutions in Bangladesh that provide home loans, including:
BestBari offers you the best home loan interest rates in Bangladesh to help you get closer to your dream home.
To help you with financing your ideal flat sale in Dhaka, BestBari provides you unparalleled access to the best interest rates, discounts, processing times, and priority VIP service through our exclusive network of banks and financial institutions in Bangladesh.
4. Documents Needed for a Home Loan
To go for a home loan, you will require the following documents:
- i) Valid National ID or passport
- ii) Passport-sized photos taken recently
iii) Proof of income (salary slips, bank statements, tax returns)
- iv) Documents of property (sale agreement, land records, etc.)
- v) Employment verification letter (if salaried) or business trade license (if self-employed)
- vi) Bank statements for the last six months
5. Steps to Get a Home Loan
- i) Evaluate Your Budget and Loan Need: Decide how much you require based on the price of the apartment in Dhaka. Estimate your affordability and monthly repayment ability through BestBari’s free-to-use online home loan calculator.
BestBari has exclusive partnerships with banks and financial institutions and we can offer you the best home loan interest rate in Bangladesh to make your dream home into a reality.
7. Hidden Costs
- ii) Compare Loan Options: Various banks have varying interest rates and loan periods. Compare quotes from several lenders, including those that operate through real estate agents using BestBari’s home loan interest rate comparison tool.
iii) Submit the Loan Application: After choosing a lender, submit the documents and the loan application form. Make sure all details are correct to prevent delays.
Step 4: Property Evaluation and Legal Verification
Banks will evaluate the value of the property, verifying legal ownership and documents before approving the loan. This is particularly crucial for properties in high-demand locations such as Flat sale in Bashundhara or Middle Badda.
Step 5: Loan Approval and Sanction Letter
If the bank approves your loan, you’ll receive a sanction letter outlining:
- i) Approved loan amount
- ii) Interest rate
iii) Loan tenure
- iv) Monthly installment details
- v) Additional charges and terms
Step 6: Down Payment and Agreement Signing
After receiving loan approval, you’ll need to pay the down payment (usually 20%-30% of the flat price in Dhaka). The bank will then sign an agreement with you.
Step 7: Loan Disbursement
After signing the agreement, the loan amount shall be paid by the bank to the seller or the developer directly.
6. Rate of Interest and Repayment of Loan
Bangladesh home loan interest rates between 7% to 11% are general. There can be various ways of repayment, such as:
- i) Fixed Interest Rate: Interest rate is constant till the period of loan.
- ii) Floating Interest Rate: The rate of interest might differ depending upon the market condition.
Loan repayments are done through Equated Monthly Installments (EMIs). Prepayment of foreclosure is allowed by some banks with small charges.
Click here to compare interest rates offered by banks and financial institutions in Bangladesh.
BestBari has exclusive partnerships with banks and financial institutions and we can offer you the best home loan interest rate in Bangladesh to make your dream home into a reality.
7. Hidden Costs to Keep in Mind
In addition to the principal and interest payments, keep these extra charges in mind:
- i) Processing Fee: 5% — 1% of the loan amount
- ii) Legal Fees: Property verification and documentation charges
iii) Mortgage Insurance: Some banks demand an insurance policy for loan protection
- iv) VAT & Stamp Duty: Government levied taxes on loan processing
8. How to Enhance Home Loan Approval Prospects
- i) Boost Your Credit Score: Ensure timely payment of debts to have a positive financial history.
- ii) Boost Your Down Payment: The more down payment, the lower the loan amount, improving prospects for approval.
iii) Go for Joint Loan Application: Getting a co-borrower (spouse or family member) raises loan eligibility.
- iv) Select a Property with Clean Legal Records: Banks like financing properties that have clean land records and clear ownership.
- v) Partner with Trusted Specialist: BestBari’s team of and experienced real estate professionals can assist you in the financing process.
9. Home Loan for NRBs (Non-Resident Bangladeshis)
If you are an NRB who wants to invest in flats for sale in Dhaka, there are special home loan schemes for expatriates offered by some banks. You’ll require:
- i) Valid passport and work permit
- ii) Evidence of foreign income
iii) Bangladesh bank account
- iv) Nominee or co-applicant who is in Bangladesh
10. Completing Your Home Purchase
After receiving your loan approval and disbursement of funds, complete the property registration and occupy your new residence. Have all formalities of legal documents completed, such as transfer of ownership and payment of taxes.
Conclusion
Getting a home loan in Bangladesh is an easy process if you take the correct step. If you are purchasing a flat for sale in Dhaka, Middle Badda, Uttara, or the Baridhara Diplomatic Zone, then knowing your loan eligibility, selecting the appropriate lender, and gathering necessary documents are the key factors.
For professional advice, contact a BestBari real estate agent by clicking this link to ease the process of home loan and find the best bargain. Real estate investment is a major step — plan well and make your dream home a reality!
