More routes to homeownership Pubali Bank PLC.

Mohammad Ali
Managing Director & CEO
Pubali Bank PLC.

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By combining instant online eligibility, segment-specific products and flexible construction grace periods, we can bring formal home finance within reach of rural households, expatriates and groups building together across Bangladesh.

Pubali Bank PLC reports more than 30% year-on-year growth in home finance, supported by products for rural households, expatriates and groups building together. Its online platform provides instant eligibility and provisional sanction decisions, while longer tenures, construction grace periods and Islamic financing broaden the routes to ownership.

The Daily Star (TDS): What are the primary bottlenecks limiting formal home finance?

Mohammad Ali (MA): One structural issue is return on investment. Rental yields from apartments can be low compared with returns from deposits or savings instruments, while buildings depreciate and land tends to appreciate. Buyers also face substantial down payments and complex property documentation. Even so, Bangladesh’s population density and continuing urbanisation ensure that housing remains a large and expanding financial sector.

TDS: What products and repayment structures serve different customer segments?

MA: Affordable Housing provides Tk 3-5 lakh for rural semi-pucca homes or extensions. Expatriate Housing supports remittance-backed repayment, while Bandhu Abasan finances groups purchasing land and building together. We also finance apartments, commercial buildings and renovations. Eligible borrowers may access takeover facilities, tenures of 10-15 years and construction grace periods of up to two years. These conventional products are also available through our Islamic Banking wing.

TDS: How is digital processing reducing turnaround times?

MA: Customers, including expatriates, can apply online and instantly receive an eligibility and provisional sanction limit. If they disagree with the system’s assessment, the case can move to human review. Credit, legal, valuation and title checks still follow. When customers submit complete property records promptly, legal review can be completed in around seven days; incomplete or staggered submissions cause most delays.

TDS: Does the bank offer special terms for women and first-time buyers?

MA: We do not currently offer separate rates specifically for women or first-time applicants. Home loans are already priced below many other credit categories, generally by around two to 2.5 percentage points. We also provide targeted rates to employees of selected hospitals, universities and other institutions, sometimes through formal agreements and sometimes through publicly announced packages.

TDS: What policy-level digital reforms could expand home finance?

MA: Integrated digital land records are the biggest requirement. If banks could verify ownership, deeds, transaction history and legal complications directly, fraud would fall and approvals would accelerate. Better credit-bureau data and digitised regulatory processes would also improve decisions.