Economic Reporter :
Bangladesh Bank (BB) asked all banks to sanction housing loan for the Non-resident Bangladeshis (NRBs).
A good number of Non-resident Bangladeshis (NRBs) appreciated the central bank’s decision to approve housing loan for themselves.
NRBs are now permitted to take loans from banks for housing purposes. Bangladesh Bank (BB) has taken the decision to facilitate NRBs to purchase apartment or lands through taking loans in Bangladesh currency.
A Senior Official of central bank said, Foreign Exchange Policy Department (FEPD) issued a circular in this regard.
The Authorised Dealers (ADs) may extend mortgage loans in Taka to NRBs working abroad for the purpose of housing in Bangladesh.
This will be allowed subject to observance of the existing guidelines of Prudential Regulations for Consumer Financing (Regulation for Housing finance) issued by Banking Regulation and Policy Department, according to a news agency.
The AD banks are also instructed that the housing finance facility shall be provided to NRBs at a maximum debt equity ratio of 50:50. The equity portion shall be provided by the borrower-NRBs either through their inward remittances or through debits to their non-resident bank accounts fed by foreign sources.
ADs may obtain securities and savings instruments held by NRBs in Bangladesh as additional collateral beside registered mortgage of the house with registered power of attorney. They may also obtain third party personal guarantees and the repayment against the loans shall be made out of inward remittances. However, rental income from the house concerned, net of applicable taxes, may be used for repayment.
In this case, ADs may, at their options, provide necessary custodial services to collect rental income. ADs shall adhere to all applicable credit norms, prudential parameters, and applicable instructions of other competent authorities. In case of housing finance facility extended by branches of scheduled banks not authorized to deal in foreign exchange, such lending bank branches should have suitable links with ADs channelling inward remittances for equity and repayment.
Bangladesh Bank (BB) asked all banks to sanction housing loan for the Non-resident Bangladeshis (NRBs).
A good number of Non-resident Bangladeshis (NRBs) appreciated the central bank’s decision to approve housing loan for themselves.
NRBs are now permitted to take loans from banks for housing purposes. Bangladesh Bank (BB) has taken the decision to facilitate NRBs to purchase apartment or lands through taking loans in Bangladesh currency.
A Senior Official of central bank said, Foreign Exchange Policy Department (FEPD) issued a circular in this regard.
The Authorised Dealers (ADs) may extend mortgage loans in Taka to NRBs working abroad for the purpose of housing in Bangladesh.
This will be allowed subject to observance of the existing guidelines of Prudential Regulations for Consumer Financing (Regulation for Housing finance) issued by Banking Regulation and Policy Department, according to a news agency.
The AD banks are also instructed that the housing finance facility shall be provided to NRBs at a maximum debt equity ratio of 50:50. The equity portion shall be provided by the borrower-NRBs either through their inward remittances or through debits to their non-resident bank accounts fed by foreign sources.
ADs may obtain securities and savings instruments held by NRBs in Bangladesh as additional collateral beside registered mortgage of the house with registered power of attorney. They may also obtain third party personal guarantees and the repayment against the loans shall be made out of inward remittances. However, rental income from the house concerned, net of applicable taxes, may be used for repayment.
In this case, ADs may, at their options, provide necessary custodial services to collect rental income. ADs shall adhere to all applicable credit norms, prudential parameters, and applicable instructions of other competent authorities. In case of housing finance facility extended by branches of scheduled banks not authorized to deal in foreign exchange, such lending bank branches should have suitable links with ADs channelling inward remittances for equity and repayment.
