SBAC Bank PLC. Partners in Homeownership Dreams

S.M. Mainul Kabir 
Managing Director & CEO
SBAC Bank PLC.

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The recent decision to raise the maximum home loan ceiling based on banks’ non-performing loan ratios is timely and practical. Banks with NPLs 5% and below can provide up to Tk 4 crore, while higher NPL ratios attract lower limits. This can give the home finance market fresh momentum and support broader economic growth.

As urban housing demand continues to rise across Bangladesh, accessing formal home finance remains a challenge for many aspiring property owners. In this interview, S.M. Mainul Kabir, Managing Director of SBAC Bank PLC, discusses the major structural bottlenecks facing the sector, from complex property verification to legal recovery processes.

The Daily Star (TDS): What are the primary bottlenecks preventing willing buyers from accessing formal home finance?

S.M. Mainul Kabir (SMMK): The major bottlenecks are lengthy property verification, complex documentation and difficulties in assessing sustainable income. Verification of title deeds, mutation, approved plans and clearances from RAJUK or relevant authorities often takes considerable time. Another challenge is the mismatch between the long-term nature of home loans and the relatively short-term nature of bank deposits. Legal complications in recovering and disposing of mortgaged property in case of default also make banks cautious. Therefore, automation of land and property registration, faster title verification and more efficient legal processes are essential to expanding formal home finance.

TDS: Does your bank offer special interest rate concessions, lower processing fees, or tailored schemes to encourage female applicants and first-time home buyers?

SMMK: Our approach is based primarily on genuine housing needs, sustainable income and repayment capacity rather than simply the customer’s category. Interest rates are determined considering market conditions, Bangladesh Bank guidelines, cost of funds and the customer’s financial and credit profile. Under our ongoing “SBAC Asset Momentum 2026” campaign, we are offering house-building loans to both male and female customers at a special interest rate of 12.5%, reduced from the previous rate of 14%.

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

SMMK: Automation of land and property registration is perhaps the most important requirement. Faster verification of title, mutation and ownership would significantly reduce processing time and uncertainty for banks and borrowers. Continued improvement of the legal framework would further facilitate the timely recovery and disposal of mortgaged properties in cases of default.