Making housing accessible to all Islami Bank Bangladesh PLC.

Md. Altaf Hossain 
Managing Director (Acting) 
Islami Bank Bangladesh PLC.

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We are simplifying home investment through digital platforms like CellFin and i-Banking, allowing customers to manage accounts, complete e-KYC, and set up Auto Pay installment payments without visiting a branch. Internal Core Banking upgrades and process automation further improve operational efficiency and monitoring.

As urban growth accelerates across Bangladesh, formal home financing remains largely out of reach for middle- and lower-income families. Md. Altaf Hossain, Acting Managing Director of Islami Bank Bangladesh PLC, shares how Shariah-compliant products, digital innovation, and targeted policy reforms can overcome these barriers.

The Daily Star (TDS): While housing demand in urban and peri-urban Bangladesh continues to grow, formal home loan penetration remains low.  What are the primary bottlenecks preventing willing buyers from accessing formal home finance?

Md. Altaf Hossain (MAH): The main barriers are the high cost of housing, limited purchasing power, shortage of adequate savings for the client’s own equity, and difficulty in meeting documentation and property-title requirements. High housing costs, rising instalment sizes, strict documentation, and limited equity or security prevent many middle-income, salaried, and self-employed individuals from accessing home finance. The recent rise in borrowing costs has also increased monthly instalments size and also made home finance difficult for middle-income families. Islami Bank provides investment through Hire Purchase under Shirkatul Meelk (HPSM), where the Bank and the client jointly own the property and the client gradually acquires the Bank’s share through agreed payments.

TDS: What key home finance products or packages does your bank currently offer to make home loans more accessible and affordable?

MAH: We offer a range of welfare oriented housing investment products to meet the needs of different customer groups, with the main product being our Housing Investment Programme (HIP). The investment is provided mainly through Hire Purchase under Shirkatul Meelk (HPSM). Tailored schemes include specialised HIP for government employees, Semi-Pucca housing, and the rural-focused Polli Griha Nirman Biniyog Prokalpa for home purchase, construction, and renovation.

TDS: What policy-level changes or support mechanisms are needed to expand home finance reach?

MAH: Expanding affordable home finance for lower- and middle-income families requires lower registration costs, faster land-title verification, and better coordination among land offices, developers, and banks. Expanding refinance options, credit guarantees, and tax incentives will allow financial institutions to offer safer, longer-tenure housing investments. Additionally, policy frameworks must fully recognise Shariah-compliant modes like HPSM, ensuring a level playing field for Islamic banks in national refinance and guarantee programs.