Author Topic: Comparison: Overview of Home Loan  (Read 881 times)

Reyed Mia (Apprentice, DIU)

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Comparison: Overview of Home Loan
« on: June 27, 2017, 08:19:28 PM »
Comparison: Overview of Home Loan

A home loan is a secured loan wherein a bank or a financial institution lends you money to help you purchase your dream home. It is generally given for a longer duration compared to other loan types because the amount borrowed is usually higher and requires a longer repayment plan.

Types of home loans:

Home Purchase Loans:
Avail these when buying a new home.
Land Purchase Loans: Choose them when you buy property for either investment or construction purposes.
Home Construction Loans: Opt for a home construction loan, if you plan to build a house over an already owned land.
Home Improvement Loans: Avail these when you are about to start a home repair or renovation project
Home Loans Transfer: Transfer existing home loan into a new lender account to capitalize lower interest rate offered by different bank.

Home Loan: Characteristics:

It is a secured loan, that is, the lender considers your house/property as a security collateral. If you fail to pay back the loan, then the lender will become entitled to retrieve the money lent by selling your house/property.

The repayment time period for a home loan is fixed and ranges from 3 years to 25 years. The Equated Monthly Installment (EMI) of a home loan is computed by adding the principal amount and interest. Home loan includes such charges as registration charge, processing fee, penalty on prepayment, commitment charge and miscellaneous charges (documentation/consultation).

Home Loan - Eligibility Criteria

Eligibility criteria might vary from one lending institution to the other, but there are some common requirements:
Any salaried, self-employed or business person with Bangladeshi nationality can apply for a home loan
You must be aged 21 years or above
You should have a regular source of income for timely repayment of the loan
Your professional stability and savings history will help in quick loan approval
Ensure that you do not have bad credit history for at least the three months prior to applying for a home loan.
If you are a salaried professionals, your monthly gross income will determine loan amount.
For self-employed individuals, profit earned by you majorly determines the loan value you are eligible for.

Home Loan - Documents Required


Application form(as per bank bank's provided format)
Photocopy of NID
Trade licence/salary certificate/Letter of introduction.
Salary certificate last 6 month.
Tin certificate/Income tax return.
Bank statement of last 12 month.
Personal net worth statement.
Partnership deed with trade license.

Memorandum of articles (in case of limited company)
Land related:

Estimate cost by certified engineer.
Copy of approved plan with approval letter.
Copy of main purchase/sale deed.
Mutation Khatian with DCR.
Original /Certified copy of Bia deed(s), if any.
Lease DEED(In case of Lease hold land).
Allotment Letter((In case of Lease hold land).
Latest NEC(Non Encumbrance Certificate from SRO)

Land Related Document(Apartment/Flat):

Copy of main deed between purchaser and developer.
Deed between the land owner and Developer with POA & share portion.
Photocopy of main receipt.
Copy of Main Plan with concern approval letter.
Copy of Main title Deed with DCR, Mutation, Khatian, & other Khatians of of the Land owner.
Copy of Lease deed,allotment letter,DCR, & Mutation of Land owner.
Latest NEC(Non Encumbrance Certificate from SRO).
Developers Details in Pad.

Loan Disbursement pre-condition:

The subject property should be insured for Fire, Flood, cyclone and Earthquake. However, obtaining Fire and Earthquake policy is mandatory.
Reyed Mia (Apprentice, DIU)
Asst. Administrative Officer and Apprentice
Daffodil International University
102/1, Shukrabad, Mirpur Road, Dhanmondi, Dhaka-1207.
Cell: +8801671-041005, +8801812-176600