Obtaining Bank Loans in Bangladesh – Procedure and Requirements
Just a couple of decades back, people of Bangladesh looked at obtaining bank loans as an extra headache, but as time went and people have become more aware of their abilities and capabilities people are willing to familiar themselves in regard to the procedure and requirements of obtaining bank loans in Bangladesh. This is why our finance and bank law experts in Bangladesh are the perfect individuals who can assist you with the loan procedures and show you the best answer as to how to obtain bank loans in Bangladesh.
Securing loans have become more and more natural and normal. And why not, it is allowing you to chase a dream over a long term which otherwise you would probably not be able to afford. However, it may often seem that in order to get a loan, mortgage or security is important in Bangladesh
Even though, there are other options now a day such as financial institutions, Micro finance Institutions etc.,, rumour says all of Mobile Banking Financial Institution are going to play role in the financial market for providing loans. Banks are still the primary lender of money when it comes to loans.
However, bank loan processing in Bangladesh is not the easiest order. Yes, every bank wants people to obtain loands in Bangladesh or to dole out loan packages and want you to be part of it and make you feel like a valued customer, but that is because they need a customer first and that is part of the business.
This is where you cannot be complacent because the bank is selling you a service and their business will only be successful when you are able to pay back the money along with the interest. That is why, it is paramount that anyone person or entity who is thinking of securing a loan must be alert about his own financial position and what type of offer the bank is making.
Need of a Bank Law Experts While Obtaining Loan in Bangladesh
Lawyers can come in real useful at junctures like this where firstly a person willing to secure a loan is aware of his own condition. The bank will not issue a loan if it does not have a security on which it can rely to get its payment back. It can range from your monthly salary to the land that your grandfather left, which you are now willing to develop with the loan from the bank. A lawyer can evaluate your estate and make sure that it is in order and you are indeed claiming the loan on something on which you have the right to claim because essentially when there is a mortgage of property, you are writing over your claim to the property over to the bank and that is a risky proposition if you are not the right owner and the documents are not in order. It can not only reduce your chances of securing the loan, it can also ruin your image in the long run which is essential when you making regular transactions with the bank. This is a common scenario in Bangladesh as there lots of property around the country which are disputed and which banks will not issue loans for.
Step By Step Procedure as to Obtaining Loans in Bangladesh
In order to understand the dynamics and the procedure for obtaining loans in Bangladesh, one need to address the following matter and also hire someone who is expert on valuation of the property.
Step-1 Property Valuation
The value of the property is another thing which the lawyer or a bank law expert would be able to evaluate for you depending on where your property is and other related factors. You must prepare and consolidate all the documents related to property, if it is an immovable property the documents checklist could be the following:
- Land Deed
- All the Khatians
- Bia - Deed
- Copy of the Name Declaration.
Other documents may be required upon primary perusal of the above documents.
For movable property, a lot depends on the nature and types of the property, if it is a movable property than documents such as bank statement, bank solvency, bank guarantee may be required.
This will give you a position and a ball park for the amount which you can expect from the bank when you are processing the loan. Another aspect where lawyers play a big role is on the documents when a loan is being processed.
Step 2 Prepare Documents for Loan Application
It is always wise to employ a lawyer to look over a transaction ahead of time and the terms and conditions you are agreeing to when you are putting up a mortgage for example. Most people just follow the general format provided by the bank which is essentially not the smartest move, as that will more likely than not hold a language favoring the bank more often than not. Lawyers are able to evaluate whether all the terms are fair and whether there are any hidden costs to the deal. Further, some clauses such as the repayment tenure and early settlement facilities are some things which need to be incorporated in such contracts which lawyers are more suited and likely to put in as they look into the nooks and crannies.
A power of attorney is also another very important instrument which is quite often used in transactions with banks. It is necessary to understand the language on your power of attorney can make you completely loose your property if it is not drafted in the right language. It is one of the basic instruments used and one should always employ a legal expert in this matter, for the language and also the formats in which it is provided.
Conclusion
You are getting a home loan, you might be tied up for the next Twenty-Five years making loan payments, it is of utmost importance that you employ a lawyer ahead of time when you are processing a bank loan so that you do not end up holding the shorter side of the stick in the long run.