1. “Features of Real Estate Finance in Bangladesh”
-A Study on Five Financial Institutions
Presentation :
Presented By:
MD. ARMAN HOSSAIN A.B. (30006)
HAFEZUR RAHMAN (24084)

2. Sample Financial Institutions that provide Real Estate Financing
 Bangladesh House Building Finance Corporation
 Delta-Brac Housing Finance Corporation Ltd.
 Dhaka Bank Limited
 Bank Asia Limited
 Standard Chartered Bank of Bangladesh
Our Key Focus was on the Comparison of Different Features, Area of
Specialization, Terms & Conditions and Recent Performance in the Real
Estate Sector of Bangladesh

3. Comparison of Offered Features and
Terms-Conditions
BHBFC DBH Bank Asia Dhaka Bank Standard Chartered
2013 2851.8 26603.5 3947.28 193.9 7702.18
2014 5392.5 24689.3 5123.09 284.13 6790.88
2851.8
26603.5
3947.28
193.9
7702.18
5392.5
24689.3
5123.09
284.13
6790.88
0
5000
10000
15000
20000
25000
30000
TakainMillion
Comparisons of Housing Loan Sanctioned in 2013-2014

4. 0
20
40
60
80
100
120
BHBFC DBH Bank Asia Dhaka Bank Standard
Chartered
20 20
75
120
100
TakainLakh
Comparison of Maximum Loan Offer
64% 66% 68% 70% 72% 74% 76% 78% 80%
BHBFC
DBH
Bank Asia
Dhaka Bank
Standard Chartered
70%
80%
70%
70%
80%
Percentage
Comparison of Loan to Property Value

5. 6%
12%
13.50%
12%
13%
0% 2% 4% 6% 8% 10% 12% 14% 16%
BHBFC
DBH
Bank Asia
Dhaka Bank
Standard Chartered
Percentage of Interest Rate
Comparison of Minimum Interest Rates of Housing Loan in 2014
0 5 10 15 20 25 30 35
BHBFC
DBH
Bank Asia
Dhaka Bank
Standard Chartered
32
30
15
15
25
No. of Years
Comparison of Loan Repayment Tenure

6. 0.20%
0.50%
0.50%
1.50%
1.50%
0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60%
BHBFC
DBH
Bank Asia
Dhaka Bank
Standard Chartered
Percentage of Processing Fees
Comparison of Loan Processing Fees of Housing Finance
Comparison of Loan Processing Fees
Comparison of Prepayment Charges
Comparison of Actual Recovery

7. 500
1000
3500
2000
3000
0 500 1000 1500 2000 2500 3000 3500 4000
BHBFC
DBH
Bank Asia
Dhaka Bank
Standard Chartered
Prepayment Charge in TK.
Comparison of Prepayment Charge of Housing Finance in 2014
84.22%
89.23%
95.00%
92.00%
98.00%
80.00% 82.00% 84.00% 86.00% 88.00% 90.00% 92.00% 94.00% 96.00% 98.00% 100.00%
BHBFC
DBH
Bank Asia
Dhaka Bank
Standard Chartered
Percentage of Loan Recovery
Comparison of Actual Recovery of Housing Finance in 2014

8. Key Suggestions:
The banks and non-banking financial institutions can
launch ‘Contractual Housing Savings Scheme,’ as suggested
by the World Bank in its workshop on ‘housing finance
market’.
The existing legal, regulatory and taxation frameworks
should be facilitating the primary and secondary housing
finance market development. Three rates of taxes: lower
tax for low-cost housing, moderate tax for semi-luxury
apartments and higher tax for luxury apartments have to be
introduced.
Government should restructure the House Building Finance
Corporation, the state-owned mortgage lender, for
supporting both public and private housing schemes so that
major cities, including capital Dhaka, could be saved from
proliferation of slums.
The government has to ensure availability of land, major
cost of housing beside the construction, and suggested
public-private partnership with funds from multilateral
lending agencies