Bangladesh expats now can obtain 75% of house building cost as bank loan

Expatriate Bangladeshis will be able to take more bank loans to build homes in the country as Bangladesh Bank has raised the debt equity ratio.

Staff Correspondentbdnews24.com
Published : 23 July 2017, 06:38 PM
Updated : 23 July 2017, 06:38 PM

The Bangladeshis working abroad can now obtain housing finance facility at a maximum debt equity ratio of 75:25, which means they can get bank loans of up to 75 percent of the cost of building a house, the central bank said in a circular on Sunday.

The previous ratio was 50:50. Other instructions and conditions in this context remain unchanged, the circular said.

The expatriates will be able to take the loan from both government and private banks in Taka, according to the circular issued after refixing the previous ratio.

The repayment shall be made out of inward remittance. Rental income from the house can also be used for repayment.

The Bangladesh Bank said the move aims to facilitate housing finance to non-resident Bangladeshis.

A central bank official, requesting anonymity, told bdnews24.com that the bank raised the ratio in order to encourage inward remittance through the banking channels.