Lenders vying for customers at REHAB fair

Lenders vying for customers at REHAB fair
More than a dozen lenders are competing with each other to lure prospective home loan borrowers at a housing fair that kicked off in the capital yesterday.

Most of the 14 banks and non-bank financial institutions that are taking part in the REHAB Fair 2019 are offering home loans with an interest rate of 10 percent and others at 11-12 percent.

The middle and lower-middle income people who dream to live in their own apartments find the presence of the lenders at the fair to be very convenient.

The Real Estate and Housing Association of Bangladesh (REHAB) has organised the four-day fair at the Bangabandhu International Conference Center at Sher-e-Bangla Nagar.

Talking to The Daily Star, Masum Rabbani, assistant relationship manager for the retail banking division of Mutual Trust Bank (MTB), said they were offering “a special rate” for home loans marking the fair to materialise the dreams of customers.

The interest rate is 9.99 percent. A loan processing fee of 0.50 percent has to be paid alongside.

A maximum of 70 percent of the property or apartment value can be borrowed, starting from Tk 5 lakh to Tk 1.20 crore, and the repayment tenure ranges from three to 25 years, said Rabbani.

He said MTB offers home loans through a wide range of customised products which can fulfil customers' dreams and requirements.

Any Bangladeshi having a stable income, such as a salaried person, businesspeople and professionals including doctors, engineers, bankers and service holders, are eligible for the home loans, he said.

According to Rabbani, the bank is giving priority to home loans as they are backed by mortgage, which reduces risks to a large extent.

IDLC Finance Ltd is offering 85 percent of the property or apartment value and registration fee combined as loan. People within 65 years of age can apply for the loans, which carry a 20-year tenure for residential apartments and 10-year tenure for commercial spaces.

SM Saroer Parvez, developer relationship manager, said service holders, professionals, businesspeople, house owners and expatriates were eligible for their home loan, which, he said, carried a “competitive” interest rate.

Bank Asia is offering its usual home loans with an interest rate of 10 percent.

Customers can borrow Tk 5 lakh to Tk 1.20 crore through easy and quick processing. The repayment period is 21 to 25 years.

Similarly, Southeast Bank is also offering home loans. In order to be eligible, salaried persons must have a minimum monthly income of Tk 30,000, businesspersons Tk 40,000, and the self employed Tk 40,000.

The interest rate varies from 10 to 12 percent, depending on the customer.

Brac Bank, Eastern Bank, National Finance and Delta Brac Housing Finance Corporation are offering nearly the same facilities for customers. 

Addressing the inaugural programme, SM Rezaul Karim, housing and public works minister, asked realtors to follow laws, rules and regulations while running their business to alleviate the sufferings of customers.

“The realtors should construct buildings according to the building code keeping in mind the environment impact,” he said.

Md Mosharraf Hossain Bhuiyan, chairman of the National Board of Revenue, said the charge for flat registration is likely to be reduced next fiscal year as a new VAT law would come into effect.

Alamgir Shamsul Alamin, president of the REHAB, and Nurun Nabi Chowdhury, senior vice president, spoke at the programme.
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