BB facilitates housing loan to NRBs
BSS
Bangladesh Bank (BB) has decided to allow banks to offer more loans to the non-resident Bangladeshis (NRBs) working abroad to help them buy flats and houses in Bangladesh, reports BSS.
To facilitate housing finance to NRBs, it has been decided that authorised dealers (ADs) may extend mortgage loans in Taka to NRBs working abroad for the purpose of housing in Bangladesh, the central bank said in a directive, issued yesterday.
The housing finance facility shall be provided to NRBs at a maximum debt equity ratio of 50:50, BB said, pointing out that the equity portion would 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 besides registered mortgage of the house with registered power of attorney. They may also obtain third party personal guarantee.
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.
BB also said that the ADs should 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. Banks shall maintain proper records in support of such payments from external sources.
Head offices and principal offices of scheduled banks shall, incorporating all above instructions, develop Product Programme Guidelines for housing finance to NRBs, the directive said.
