Bangladesh Bank (BB) has allowed the NRBs (Non-Resident Bangladeshis) to get home loan in local currency from Authorised Dealer (AD) banks.
“To facilitate housing finance to NRBs, ADs may extend mortgage loans in Taka to NRBs working abroad for the purpose of housing in Bangladesh,” said a BB circular issued yesterday.
The home loan will be issued in line with the existing guidelines on Prudential Regulations for Consumer Financing issued by the Banking Regulation and Policy Department, it said.
The housing finance facility will be provided to NRBs at a maximum debt equity ratio of 50:50, which means that bank will give Tk50, if an expatriate deposits Tk50 against the loan.
The equity portion will be provided by the borrower or NRBs either through their inward remittance 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.
The repayment against the loans will be made out of inward remittance.
The central bank has asked the scheduled banks to develop Product Programme Guidelines for housing finance to NRBs.
