Many people dream of buying a flat in Bangladesh. But the cost of flats is very high. People can own their dream homes with flat financing options. Banks and financial institutions offer loans to make this easier. Anyone can easily
buy apartments with the help of these institutions. These loans come with different terms and benefits. In this blog post, we will discuss various types of flat financing options in Bangladesh.
Home loans are the most popular choice for flat buyers. Private banks and NBFIs often offer these loans. These loans can easily fulfill the dreams of buying properties. Some even have special schemes for low-income
families. Government programs also support flat financing. The Bangladesh House Building Finance Corporation (BHBFC) provides affordable loans. These are great for middle-income buyers.
To get the best deal, compare loan options from different lenders. Assure Group can guide you through the process. Ready to own your flat? Call us now at +8809612-008800 to start your journey today!
In Bangladesh, you can find various ways to finance a flat. Each option has its own features, benefits, and requirements. You can choose according to your wish. Here are the main types of flat financing available in Bangladesh.
Loan amount: Covers 60-80% of the flat’s value, depending on the lender.
Interest rates: Range from 12.5% to 14%, based on your credit score and loan term.
Repayment period: Can be 10-25 years, with flexible monthly payments.
Tax benefits: You can get tax deductions on the interest and principal paid, as per Bangladesh’s tax laws.
Age: You must be 21-65 years old at the time of loan maturity.
Income: You need a steady income from a job or business.
Credit score: A good credit history increases your chances of approval.
Documents: You need ID (NID or passport), income proof (salary slips or tax returns), bank statements (6-12 months), and property documents (title deed or purchase agreement).
02
Mortgage loans
Mortgage loans are secured loans where the flat acts as collateral. If you fail to repay, the lender can take the property. These loans are flexible and can be used to buy a flat, expand a business, or consolidate
debt. Here are some key features of a mortgage loan:
Interest rates: Range from 8% to 14%, depending on the lender.
Loan tenure: Up to 20 years, with monthly or quarterly payments.
Collateral: The flat you buy or another property is used as security.
Eligibility: Same as home loans
Documents: You must provide clear property documents to prove ownership.
Benefits: Lower interest rates compared to unsecured loans.
03
Government-subsidized loans
The government offers affordable loans through the BHBFC. These loans target low- and middle-income families. The Low-Income Community Housing Support Project (LICHSP) and housing microfinance schemes also help. Here are some key features:
Interest rates: Lower than private banks, often 5-8%.
Loan amount: Covers up to 70% of the flat’s cost.
Repayment period: Up to 20 years, with affordable monthly payments.
Target group: Focus on low- and middle-income households.
Eligibility: Income must fall within the low- or middle-income bracket.
Benefits: Affordable interest rates, long repayment terms.
04
Home improvement loans
These loans are for renovating or upgrading an existing flat. It helps improve living spaces or increase property value. Here are some features:
Loan amount: Covers renovation costs, usually up to 50% of the flat’s value.
Interest rates: 10-14%, depending on the lender.
Repayment period: Shorter terms, typically 5-10 years.
Eligibility: You must own the flat or have permission from the owner.
Benefits: Enhances the flat’s comfort and value.
05
Joint Venture Financing
In joint ventures, landowners and developers share costs and profits. The landowner provides the land, and the developer builds the flats. This is common for large projects in Dhaka. Here are the main features:
Cost sharing: The developer funds construction, while the landowner provides the land.
Profit sharing: Both parties split the profits or flats based on an agreement.
No upfront cost: Landowners don’t need to pay for construction.
Eligibility: Landowners must have clear ownership documents.
Benefits: Landowners can develop flats without personal funds.
Government initiatives to support flat financing
The Government of Bangladesh is taking significant steps to make flat financing more accessible and affordable for its citizens. They are working to make housing affordable. Here are some efforts:
Ashrayan project: This project builds low-cost homes for poor families. It reduces the need for loans.
Interest rate caps:Bangladesh Bank set a 9% cap on bank home loans. NBFIs have an 11% cap. This keeps rates affordable.
Subsidies for government employees: Government workers get lower rates (4%) on construction loans.
RAJUK approvals: The government ensures flats meet safety standards. This protects buyers and lenders.
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With so many loans available from banks, non-banking financial institutions, and developers, it’s important to pick one that fits your budget and needs. Here are some tips to make the process easier:
Compare lenders: Check rates and terms from at least three lenders. Use online EMI calculators from banks. This helps you plan payments.
Check developer credibility: If using developer financing, research the developer. Look at their past projects and reviews. Assure Group offers reliable financing plans.
Plan your budget: Don’t borrow more than you can repay. Keep EMIs below 40% of your monthly income. Save 30-40% of the flat’s price as a down payment.
Understand loan terms: Read the fine print. Check for hidden fees or penalties. Ask about fixed vs. floating rates. Choose what suits your financial plan.
Hire a legal expert: A lawyer can check property documents. This avoids legal issues like ownership disputes.
Look for special offers: Some lenders offer discounts. For example, government employees get 4% rates on construction loans.
Consider location: Choose a flat in a good area like Gulshan, Basundhara, or Uttara.
These areas have high resale value.
Find your perfect home loan!
Owning a flat in Bangladesh is now easier with many financing options. Home loans from banks cover up to 80% of the cost. You can choose terms that fit your budget, with repayment up to 25 years. Always compare interest rates
and check for tax benefits to save money. With the right plan, your dream flat is within reach. As one of the leading real estate companies in Dhaka, Assure Group can
guide you throughout the process.
A home loan is money borrowed from banks or NBFIs to buy a flat. It covers 60-80% of the flat’s cost. You repay it over 10-25 years with interest rates of 12.5%-14%.
Anyone aged 21-65 with a steady income can apply. You need a good credit score, ID, income proof, and property documents. Banks check these before approving.
You need your NID or passport, salary slips or tax returns, bank statements for 6-12 months, and property papers like the title deed or purchase agreement.
Yes, BHBFC offers affordable loans for middle and low-income groups. Some banks have schemes with lower interest rates. Check with lenders for eligibility details.
Yes, Non-Resident Bangladeshis can apply for home loans. Banks offer special loans with tax benefits.
If you miss payments, the bank may take your flat. High interest rates (9-14%) can be costly. Always read loan terms carefully before signing.
