Smart finance, new homes Dhaka Bank PLC.

Md. Mostaque Ahmed
Deputy Managing Director and CEMO
Dhaka Bank PLC.

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“By optimising LTV ratios and introducing step-up EMIs, we are removing financial barriers to homeownership, ensuring that first-time buyers and NRBs can secure their future through responsible and accessible formal finance.

Dhaka Bank PLC is expanding access to homeownership by addressing the specific needs of middle-income families, women, and NRBs. By combining flexible repayment structures like step-up EMIs with digital transformation and alternative credit assessments, the bank is simplifying the journey from aspiration to ownership.

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

Md. Mostaque Ahmed (MMA) : The core challenges involve informal income documentation and high initial equity requirements. Many small business owners and self-employed professionals have the repayment capacity but lack conventional tax records. Furthermore, current loan-to-value (LTV) ratios often require a 30% to 50% down payment, which is a significant hurdle for middle-income buyers. Fragmented property documentation and the concentration of finance in major metropolitan areas also limit broader market penetration.

TDS: What flexible repayment structures and Shariah-compliant options do you provide?

MMA: We offer a variety of solutions, including our “Step-up EMI” facility, designed specifically for young professionals, where instalments start low and increase with income growth. Our tenures extend up to 25 years to reduce the monthly burden. For those seeking ethical banking, our Shariah-compliant HPSM (Hire Purchase under Shirkatul Melk) structure allows clients to gradually buy out the bank’s share of the property through rent.

TDS: How is Dhaka Bank supporting women, first-time buyers, and NRB clients?

MMA: For women and first-time buyers, we provide preferential interest rates and flexible debt service ratio assessments. For Non-Resident Bangladeshis (NRBs), we have developed products that accept foreign employment contracts and remittances for income assessment. This allows them to build assets at home by facilitating loan repayments directly from foreign remittance accounts, reducing reliance on local documentation.

TDS: How are you simplifying income and property verification to reduce turnaround times?

MMA: We are moving toward alternative income assessments, considering business cash flow, utility payments, and rental income when formal documents are limited. By establishing structured relationships with reputed developers, we conduct legal and technical due diligence at the project level, ensuring a faster approval process.

TDS: What policy-level reforms would most effectively expand access to home finance?

MMA: Optimising the LTV framework—specifically allowing up to 80% financing for first-time buyers—would significantly improve affordability. We also advocate for the rationalisation of property registration costs and stamp duties.