Speakers at a webinar discussion here underscored the need for bilateral cooperation in agriculture between India and Bangladesh to overcome the existing problems caused by COVID-19.

South Asian Network on Economic Modeling (SANEM) and Asian Confluence jointly organised the discussion meeting titled “Regional Cooperation in Trade and Development of Agriculture: Perspectives from Bangladesh and India.”

Conducted by Dr Selim Raihan, Executive Director of SANEM, the webinar hosted an expert panel discussion as academicians, researchers, journalists, agriculture experts, development practitioners, businessmen and students took part in it.

Dr Selim Raihan, also a professor of Economics department at Dhaka University, hoped that SANEM and Asian Confluence will continue to collaborate in fostering intellectual discussions promoting regional cooperation and trade.

“Farmers in Bangladesh don’t have any expertise on marketing of their products and thus they should be trained in this regard. However, increasing bilateral cooperation and trade in agriculture, political willingness is most important,” he added.

Sabyasachi Dutta, Executive Director of Asian Confluence, India East Asia Center at Shillong in India, described the necessity of cooperation between India and Bangladesh in agricultural sector.

“In the context of the ongoing pandemic, cooperation in agriculture has become all the more important. The effective role of think-tanks in increasing regional cooperation,” Dutta pointed out.

Abdus Salam, Managing Director of Organic Bangladesh Limited, said Bangladesh can gain advantage in export of agricultural products, in competition with other countries through regional cooperation.

“Such collaboration can benefit farmers of both countries, increase regional trade and assist in export earning,” he added.

Dr M Nahid Sattar, Associate Professor of Agricultural Economics department at Bangladesh Agricultural University, said the pandemic has affected income and in turn the consumption of the mass people, which has significantly decreased the sale of agricultural products.

To tackle these problems, he stressed the need for commercial transformation of agriculture and development of market management structure in Bangladesh.

 

Life is full of uncertainties. We can’t always anticipate what is coming ahead. Sometimes, destiny puts us in situations – whether good or bad – when we face instant need of money. Sometimes our instant financial need overflows our budget or bank balance. Then we have no other choice left but to borrow money. Many of us feel ashamed of borrowing money from friends and relatives due to self-respect issues. Now what’s the way out?

Nowadays, many banks and financial organizations in Bangladesh are offering ‘Advanced Loan against Salary’ to the salaried executives. This type ‘Personal Loan’ is provided on the basis of an individual’s monthly salary multiples. This loan is also popular as ‘Any Purpose Loan’ as it is provided to fulfill any legitimate need of the borrower. Self-employed professionals, business owners and landlords also get loans under these schemes.

You can take personal loan to meet any ‘legitimate’ personal financial need, like medical treatment, education, tourism, marriage, home renovation, interior designing, purchasing consumer goods, purchasing different tools and equipment for office set up, etc.

In this article, we are gonna introduce you with some renowned scheduled banks and financial organizations who are currently offering worthwhile Personal Loan Deals in Bangladesh.

How to Choose the Best Personal Deals in Bangladesh?

In this section, we have focused on some vital parameters to find which bank is providing the best personal loan deal for you.

Rate of Interest

Interest rates are basically two types: fixed and floating. From our survey, it revealed that the banks mostly set floating interest rates on their loan products.

The above info-graph shows the initial rate of interest for ‘Personal Loan’ for different banks in Bangladesh. Averagely, the initial interest rate fluctuates around 11 to 13 percent. A few banks like BCB demand a higher (about 17%) rate of interest. However, the rate of interest is about to change any time depending on respective bank policy.

Loan Ceiling

If you need a good deal of money for medical treatment or marriage or any other legitimate purpose, it is wise to check out which banks are offering the highest loan ceiling.

On average, most of the banks in Bangladesh sanction a maximum of 10 to 20 lacs in BDT under Personal Loan/ Any Purpose Loan/Advanced Loan against Salary scheme. For some banks the loan ceiling may be lower. For instance, NCC Bank offers maximum 1 lac BDT under ‘Personal Loan’ scheme.

Loan Amount at Salary Multiplications

Some banks are offering ‘Advanced Loan against Salary’. This kind of loan product is especially designed for salaried executives who draw salary through any government approved bank in Bangladesh. It depends on the bank policy how much money can you get against your current monthly salary.

The above graph reveals the trend of advanced loan against salary multiples offered by several reputed banks in Bangladesh. Researching a number of renowned scheduled banks in Bangladesh, we noticed that generally banks offer 10 to 15 multiples of the monthly salary amounts as ‘Advanced Loan against Salary’. However, EBL stands out from the other banks in offering the maximum multiples (up to 20 times) of salary as advanced loan.

Lowest Amount of Loan

For sudden financial requirement you may need to borrow a small range loan. The scheduled Banks in Bangladesh provide personal loan starting from minimum 25000 BDT.

Our research shows that most of the scheduled banks in Bangladesh provide a minimum 50 thousands BDT for ‘personal loan’ or ‘any purpose loan’. However, some banks – like City Bank and EBL – don’t approve applications for personal loan when the expected loan amount falls below one lac BDT.

Loan Repayment Tenure

Though loan tenure depends on the policy of respective bank, the tenure can be cut short depending on the borrower’s age. For instant, if banks set maximum age limit 60 years on loan-maturity. Then, a 59 year old person can get Personal Loan; but s/he gets only one year for repaying the total loan amount.

Starting from a minimum six months, an individual borrower usually avails 5 years period to repay his/her loan including interest. However, a few banks like NCC Bank and BCB sanction loan for limited tenure (3 years). On the other hand, NRBC Bank offers extensive tenure (6 years) for loan repayment.

How Banks Choose Potential Borrower for Personal Loan

The scheduled banks in Bangladesh provide ‘Any Purpose Loan’ or ‘personal loan’ or ‘Advanced Loan against Salary’ to the deserved customers who can meet the specific standards set by respective bank policy. In this section, we are gonna discuss some significant factors which the banks tend to evaluate before sanctioning any personal loan.

Debt Burden Ratio (DBR)

While evaluating any loan application, the banks evaluate the client’s income-expenditure profile and calculate the Debt Burden Ratio (DBR). In simple words, DBR calculates the burden of your liabilities (loan EMI, and other monthly expenditure) over your earning (monthly).

The maximum allowed range of DBR varies depending on monthly earning. For instance, banks may allow up to 60% DBR when you earn two lacs BDT per month. The same banks may not approve your loan loans when the DBR crosses 40%, if your monthly earning falls below fifty thousand BDT.

Our research shows that the renowned scheduled banks choose prospective clients with lesser DBR profiles. It seems that the possibility of loan approval increases while the DBR value decreases. While approving ‘personal loan’ the scheduled banks tend to keep the DBR range within 40 to 60 percentages, in general.

Age Limit

If you are a salaried executive you can’t get a loan after taking retirement from your office according to Government policy. In Bangladesh, the age of retirement is mostly 60 or 65 years. The scheduled banks approve ‘personal loan’ calculating the borrower’s age of retirement at the end of loan tenure. Usually, the banks want their clients to complete the loan tenure before hitting retirement age. However, the maximum age limit for getting a loan may vary depending on the borrower’s occupation type. And the minimum age of getting any loan starts from 18 years.

The above graph depicts the age range for personal loan approval by the government approved banks in Bangladesh. Mostly the banks are comfortable to offer loans to 21 years or older clients. The maximum limit of age is hovering around 60 to 65, on average. However, some banks like NCC Bank don't approve loan to clients over 50 years; whereas DBBL allows up to 70 years – at the end of loan tenure.

Monthly Earning

Banks are highly interested to offer ‘personal loan’ to salaried executives, professionals, business owners, landlords, self-employed and government employees who make handsome amounts per month on a regular basis. However, the minimum earning requirement for loan approval may vary depending on the prospective borrower’s occupation type. For instance, earning requirement is a bit flexible for government professionals.

The above graph represents the trend of minimum required monthly earning for salaried executives working in private sector organizations. A good number of banks are ready to offer ‘Personal Loan’ for minimum monthly earning of 15 thousands BDT. Average banks require 20 to 25 thousands earning per month. While a few financial organization and banks (like IPDC and NRB Bank) expect a bit higher level of earning.

Work Experience

The required length of work experience varies for government employees, private salaried executives, self-employed professionals, businessmen and landlords. Usually, the scheduled banks have flexible earning requirement for the renowned businessmen, Government officials, successful professional, etc.

The above info graph reveals the length of required work experience for salaried executives working in private sector. Mostly the scheduled banks are comfortable to provide loans to permanent executives working in well-known organizations. A significant number of banks want 2 to 3 years of continuous work experience with at least one year working history with the current employer.

Bottom Line

Opportunity of getting Advanced Loan against Salary is a windfall for many salaried executives in the moment of crisis. People from other profession can avail this opportunity taking ‘Personal Loan’ or ‘Any Purpose Loan’. Some banks are providing ‘Special Loan’ to professionals working under some specific sectors. Therefore, it behooves upon you to find an appropriate Loan Scheme that complies with your specific legitimate financial need.

Our research also shows that a good number of banks are offering as high as 20 lacs BDT as ‘Personal Loan’. However, under the scheme of Advanced Loan against Salary, the banks decide the loan ceiling counting monthly salary multiplications of the salaried executives. On average, the scheduled banks sanction 10 to 20 times of monthly salary as loan amount.

And, most of the banks provide 50 thousands BDT as minimum amount under ‘Personal Loan’ category. Though the scheduled banks in Bangladesh allow 5 years loan tenure, this term might be shorter depending upon the maximum age limit set by respective bank as well as the retirement age of the borrower from his/her current working place. Usually, banks prefer clients aged not less than 21 years and not more than 65 years.

Minimum required monthly earning ranges from 15 to 30 thousands BDT depending on specific policy set by respective bank. And, for work experience the scheduled banks require 1 to 3 years of continuous experience under reputed institutions.

In this article, we have analyzed ‘Personal Loan’ schemes offered by different scheduled banks and financial organizations in Bangladesh. Due to the inadequacy of time, budget, and manpower, we couldn’t research all banks. But we have tried our level best to overview the lucrative offers for Personal Loan in Bangladesh. Hope it helps!

---

Also Read: Home Loans in Bangladesh

The emphasis on inclusiveness in finance means that not only are the days gone when you had to go to the bank for certain transactions like paying bills, withdrawals, etc. The advent of digital innovations in the field heralded a new era of paperless money transactions in the world during the Nineties. Appearing on the scene as the handmaiden of Fintech (Financial Technology) is the innovative approach to managing money called Mobile Financial Services (MFS).

MFS refers to branchless banking whereby financial services are offered to both banked and unbanked people efficiently under reasonable charge-rates. MFS offers advanced-level financial services combining traditional banking system with the wireless telecommunication technology to assure instant and secured money transaction process.

What are the benefits of MFS? Like the formal banking system, you can do savings, send and withdraw money via MFS. You can also pay your utility bills using this platform. Nowadays, MFS platforms through their ‘mobile wallets’ are offering wide ranging facilities like remittance, purchasing goods and services, etc. MFS have speeded up the process of making deposits, withdrawing cash, sending or receiving funds using a registered mobile account. In simple words, MFS provide easy access to formal banking system.

In Bangladesh, MFS got popularity in the name of Mobile Banking. Generally, the agents of respective banks enable these services after registering the mobile account. Under this platform, a mobile account owner can withdraw cash, and send/receive money via the independent agent locations without visiting any bank. By virtue of MFS, people living in the remote locations of the country can save money to their mobile accounts at nominal amounts without going through the hassle of moving to banks physically.

The concept of Mobile Financial Services (MFS) is still new in Bangladesh. Our report aims to introduce the readers with the leading MFS provider companies and compare their offered services in Bangladesh.

The Best Mobile Financial Service (MFS) Providers in Bangladesh

Mobile financial services (MFS) are revolutionising the traditional money transaction process via formal banks. Bangladesh Bank has allowed 16 leading banks to offer MFS in Bangladesh. In this special report, we are going to focus on the top performing MFS providers in Bangladesh.

Leading the way: bKash

The spectacularly successful bKash is the major player in the field of MFS in Bangladesh. Backed up by Brac Bank, bKash started their MFS program in 2011. By 2019 it had 3.1 crore active users. With some 180,000 agents countrywide effectively acting as bank branches to facilitate their user base, bKash is holding above 80 percent share of the total MFS market in Bangladesh. Up to July 2019, more than TK 37,477.35 crore has been transacted through bKash MFS.

They offer MFS include cash-in, cash out, bill payments, mobile recharge, remittance, donation, purchasing movie ticket, saving, etc. These can be availed through the prominent telecommunication networks in Bangladesh.

Rocket

Dutch Bangla Bank Limited (DBBL) was the first bank who launched banking services and financial facilities using the mobile communication network in 2012. DBBL provided bank-led mobile banking services were re-branded as ‘Rocket’. DBBL’s Rocket is currently the second largest player holding around 17 percent market share in the domain of mobile banking sector of Bangladesh.

Rocket services include cash deposit, cash withdrawal, ATM money withdrawal, mobile top-up, person to person (P2P) Transfer, bank account to Rocket account transfer, merchant payment, international remittance, utility bill payment, salary disbursement, government allowance disbursement, etc. Customers can easily avail the DBBL provided mobile banking services via ‘Rocket’ app.

SureCash

SureCash is another potential MFS platform launched by Progoti Systems Ltd in 2015. SureCash represents an open network of payment in corporation with several local banks, with above 1,000 payment partners. SureCash developed their exclusive mechanism focusing on government education programs, schools, colleges, utilities, etc.

SureCash MFS offer money transfers via cash-in and/or cash-out, person-to-person (P2P) money transactions, inward foreign remittances, utility bill payments, government charges/payments, educational institute fee payments, purchasing goods and services, etc. Clients can enjoy SureCash MFS platform downloading the SureCash app from the Play Store.

Nagad

Bangladesh Post Office (BPO) launched ‘Nagad’ a Digital Financial Service (DFS) in November 2018. Nagad is re-branded version combining the Electronic Money Transfer System (EMTS) and Postal Cash Card service previously announced by BPO.

Nagad MFS platform covers money transactions via Cash-In, Cash-Out, and Send Money. These MFS also include popular services like, mobile recharge. The upcoming services include utility bills payment, and e-commerce payment gateway. Nagad MFS can be availed by ‘Nagad’ mobile Apps.

Ease of Opening Account

Forget those days, when people need to visit bank physically to perform formalities – like filling out an account opening form, submitting documents personally – and then had to wait for around 2 weeks to receive the chequebook. The popular MFS platforms in Bangladesh offer simple account opening procedure. You can open bKash, Rocket, SureCash and Nagad account through Robi, Airtel, Teletalk, Grameenphone, and Banglalink.

For bKash

You can open a bKash account visiting their service centres with necessary documents like, National ID or Driving License or Passport, Photograph, and your mobile phone with SIM card. All you need to do is fill out the bKash Account Opening Form, then press your thumb print and finally put your signature properly.

After the verification, you can avail all MFS services including Cash Out, Mobile Recharge, make Payments, etc. offered by bKash. Dialing *247# you can enjoy bKash MFS services 24 hours a day, and 7 days a week.

Via ‘bKash’ App.

If you would like to open bKash account via app, it might take only a few minutes. First download the bKash app from Google Playstore. Then, tap new account registration and carry on the process. After successful submission of all these information, bKash will send you a confirmation PIN. Then you can dial at *247# to avail bKash MFS services 24 hours a day, and 7 days a week.

Rocket

You can open Rocket Account via Visiting Centers. First you need to fill up and submit the KYC Form to the agent along with your photograph and National ID (NID). Then, the agent will help you to complete the process. Your Rocket account will be created in the DBBL system which is your mobile SIM number plus one check digit. You will receive a confirmation SMS which containing your Rocket account Number You are also recommended to remember the check digit.

You can easily open account via ‘Rocket’ app after downloading it from Play store.

SureCash

You can open your SureCash account by visiting the nearest SureCash center or authorized SureCash agent. To open a SureCash mobile banking account you need to bring your own mobile phone, one copy passport size photo, and photocopy of own NID or passport or driving license. First, an authorized SureCash agent will help you to carry out the registration process.

When the registration is done successfully, you will get an SMS in your mobile containing a 12 digits wallet number. The first 11 digits are your mobile number and 12th digit is the check digit. Check digit will you security against any kind of incorrect transaction.

You can also do the registration process via ‘SureCash’ app after downloading it from the Google Play Store.

Nagad

For opening Nagad account, first download the ‘Nagad’ App from Google Play Store or App Store. All you need is your original National Identity card (NID). Navigate to the account opening tab and follow the system.

Money Transaction Service

Bkash Money Transaction Service

Industry leader bKash MFS platform allows you to transact money in several ways, like recharging money to your own bKash account, releasing money from your bKash account and sending money to another owner’s bKash account.

bKash Cash In (Cash Deposit)

You can deposit money to your bKash Account via ‘Cash in’ service. For this purpose you need to visit any any bKash agent. Then, inform that agent how much amount you wanna Cash In. Then the bKash agent would help you to complete the procedure. If the desired amount is BDT 5,000 or higher, you are required to mention your National ID Card number. Bkash Cash-in is a free service. So you don’t have to pay any extra charge beside the cashed-in money.

bKash Cash Out (Cash Withdrawal)

If you have adequate balance in your bKash Account, you can use the ‘Cash Out’ service under bKash MFS to withdraw money from your bKash account whenever you want. You can avail the ‘Cash Out’ service either from any bKash agent or ATM.

Bkash ‘Cash-out From Agent’ service allows minimal withdrawal limit of BDT 50 to BDT 25000 at maximum. For any amount of withdrawal charge is 1.85%. To Cash Out from your bKash Account, visit to any bKash agent. If the amount is BDT 5,000 or higher, you would’ve to mention your National ID Card number.

After completion of the procedure, both you and the agent will receive a confirmation message. Don’t forget to count the amount provided by the agent before signing the Register. Bkash ‘Cash-out From Agent (via app)’ limit is 50 BDT to 25000 BDT. Charge is 1.5%.

Bkash ‘Cash-out From ATM’ service offered money withdrawal limit ranges from BDT 2000 BDT to 25000 BDT. Cash withdrawal charge is 1.5%, which accounts for BDT 30 for withdrawal of BDT 2000. When you are requesting ATM Cash Out, the process is a bit different. Get the required security code to withdraw cash from BRAC Bank and any Q-Cash ATM.

To withdraw cash from BRAC Bank ATM, visit a booth where Cash Out from bKash Account is enabled. The ATM screen will guide you to carry out the process. Don’t forget to check the entered information on the ATM screen. After cash withdrawal, collect your receipt. You will receive a confirmation SMS from bKash.

bKash Send Money

Send Money is another great bKash MFS feature which allows you in transferring money from your bKash Account to another owner’s bKash Account. Limit ranges from minimum BDT 10 to BDT 25000. Bkash tariff is BDT 5 for sending any amount. To send money navigate your bKash Mobile Menu by dialing *247#. Pick the “Send Money” option and follow the system. When the process is done, both you and the receiver will receive a confirmation message from bKash. You can 'Send Money' at free of cost via bKash App!

Bank to Bkash money transaction is free. Now bKash clients can transfer money instantly from Bank account to bKash account number via Internet Banking. You will find the list of banks on bKash website, to transfer money using bank’s internet banking.

Money transfer from Card to Bkash is totally free. You can deposit money to bKash customer account from Mastercard. A bKash account owner (active account) can draw money from any Mastercard, Debit card, Credit card and Prepaid card issued by any Government approved Bank or Financial Institutions in Bangladesh.

Rocket Money Transaction Service

Like bKash, the Rocket MFS allows cash deposit, cash withdrawal and sending money service. You can get this service both from agents and ‘Rocket’ app.

You can avail the cash-in (deposit) service from any DBBL Branch, and DBBL agent. This service is also available at UISC, Banglalink, Airtel, and Citycell retail points as well as Mobicash marked outlets of Grameen Phone.

When you hand over the cash to the DBBL Agent, s/he will initiate the transaction from his/her mobile account by dialing *322#. The Agent will issue you (customer) a receipt. The system will send an SMS to your (customer) mobile Rocket account number. For security, don’t forget to check the received amount

You can get cash-out (withdraw) service from any DBBL Branch and ATM, DBBL authorized or own agent, Citycell, UISC, Banglalink, Airtel retail points and Grameenphone Mobicash outlets. First you need to ask the DBBL Agent how much money you want to withdraw. Then, the agent will initiate the transaction from his/her mobile account by dialing *322#. After completion of the procedure, the system sends an SMS to your (customer's) mobile. Agent will hand over the money to you (customer).

You can also get cash-out (withdraw) service using any DBBL ATM Booth. In normal situation a screen will pop up in ATM monitor indicating that the ATM is ready for designated financial transaction. For cash ‘Rocket’ withdrawal service, press ‘Mobile Banking’ Button. Then type your 12-digit Rocket account number on the ATM screen. Press ‘Correct’ button after checking and collect the money with receipt.

DBBL Rocket offers ‘Send money’ service, which allows you to transfer money from one Rocket account to another Rocket account. To enjoy this service from DBBL Rocket account, all you need to do is just dial at *322# and follow the procedure mentioned in DBBL website.

You can also transfer money from bank account to your DBBL Rocket account or vice versa. This MFS also allows you to transfer money from any DBBL Debit Card to DBBL Rocket account. Dial at *322# to avail this service and complete the procedure according to in DBBL website.

SureCash Money Transaction Service

You can send money from your SureCash mobile account to another SureCash account within a few seconds. The money transaction process is simple and fast. To get this service, just dial at *495# and navigate to SureCash USSD menu. Then press ‘REPLY’ and enter ‘1’ (Send Money). When the procedure is done, both you and recipient will get confirmation SMS from SureCash.

Table: SureCash Transaction Limit

Note. Reprinted from SureCash. (n.d) ‘Transaction Limit’. Retrieved January 21, 2020 from surecash.net/transaction-limit/.

Nagad Money Transaction Service

Like bKash, Rocket and SureCash, the ‘Nagad’ MFS platform includes ‘Send money’ service. It will allow you in sending or transferring money from your ‘Nagad’ mobile account to another owner’s ‘Nagad’ account. The process is very easy. Go to your Nagad mobile menu to navigate the send money option. On completion of the procedure, both you and the recipient will get a confirmation SMS on respective mobiles from the Nagad system.

Ease of payments

The leading MFS providers in Bangladesh have made the purchasing procedure easier and faster than ever before. Now you can make the payment – for purchasing goods or utility bills or different types of fees and charges – within a few moments without going through the hassle of physical movements.

Payment via bKash

You can easily send payments from your own bKash mobile account to another “Merchant” who accepts “bKash Payment”. This MFS is available at more than 47,000 outlets countrywide. To bKash your Payment navigate to your bKash Mobile Menu by dialing *247#. Then, choose the “Payment” option and follow the method mentioned in bKash website.

Many people suffer electricity line cut for not paying bill on time due to many reasons like sickness, lack of time, traffic jam on the road, etc. Thanks to bKash MFS for initiating ‘Pay Bill’ service. Now you can pay your Electricity and other utility bills anytime and from anywhere using bKash ‘Pay Bill’ service. Just dial at *247# to recharge your DESCO Smart Pre-paid Meter.

Payment via SureCash

SureCash MFS platform includes an exclusive service for sending fees to schools and colleges. Now you don’t need to visit the school or college physically for paying the education fees; rather you can pay while staying at home. It not only saves you time but also reduces hassle. To get this service, dial at *495# and navigate to SureCash USSD menu. Then, press REPLY tab and enter 3 (for Payment). And follow the system mentioned in SureCash website.

Like bKash, SureCash MFS offers the utility bill payment service. You can pay municipality bills as well as utility bills via SureCash. It gets you rid from the stress of visiting any utility office or bank branch for paying bills. Just dial at *495# and open your SureCash USSD menu. Press REPLY tab and enter 3 (Payment). And follow the designated system.

Surecash E-commerce Payment

SureCash MFS allows you to purchase goods from online, which is a boon for busy people. The process is quite simple. Just pick your desired product and go to cart (payment). Then, select SureCash as payment option and enter your SureCash wallet number. When the payment is done, you will receive a confirmation SMS.

Another feature of SureCash MFS is the Credit Card Payment option. To enjoy this service, dial at *495# and navigate to your SureCash USSD menu. After Pressing on REPLY tab, enter ‘3’ (Payment). Then, enter ‘credit card payment’ as KEYWORD. Choose credit card type and insert your credit card number. After completion of the payment process, you will receive a confirmation SMS.

Does it pay to save?

Many people, especially those living in remote places, don’t practice saving to avoid the annoyance of visiting banks physically. Thanks to the latest technology of Mobile Financial Services (MFS). This platform not only allows the user to transact money or purchase products; but also encourages users to build the habit of savings at nominal amounts any time they feel convenient.

Bkash Savings Facility

Additionally bKash MFS promises to keep your money safe. In addition to this, bKash offers up to 4% Interest (annual rate) on the Savings of your bKash mobile account. However, this interest offer is applicable to the bKash Customer Accounts only. Dial at 16247 from your bKash mobile account to avail this service.

Table: bKash Slab wise Interest Rate Per Annum

Note. Reprinted from bKash. (n.d) ‘Interest on Savings’. Retrieved January 21, 2020 from bkash.com/products-services/interest-on-savings.

For example, if an individual (bKash account owner) keeps a minimum balance of BDT 1,000 in his/her bKash account throughout a month, does at least 2 transactions and keeps an average day end balance between BDT 1,000 to BDT 5,000.99 in that month. Then, that individual (bKash account owner) will receive 1.5% rate of interest (at annual rate) upon the average balance of that specific month. VAT & AIT charges will be deducted as per the rules of Government of Bangladesh.

Nagad Sanchay Details

Bangladesh Post Office (BPO) has initiated a praiseworthy saving plan through their MFS platform ‘Nagad’. Nagad claims that their customers will get the highest profit for saving money in their Nagad accounts. All regular Nagad customers are eligible for availing the profit as per the table below.

Table: Nagad Profit Rates

Note. Reprinted from Nagad. (n.d) ‘Sanchay Details’. Retrieved January 21, 2020 from nagad.com.bd/service/sanchay/.

Other MFS Benefits

Both bKash and Rocket MFS provide international remittance transfer service. Remitter can transfer the remittance from an Exchange House (nominated by bKash or DBBL) through a partner Bangladeshi Bank (nominated by bKash or DBBL). The remitted money will be transferred to the beneficiary's bKash/Rocket account within a few days and the beneficiary will instantly receive an SMS when the deposit takes place.

Bkash MFS allows ‘donation’ service for healthcare service, education, and zakat. You will find a list of donation-receiving organizations in bKash website.

Mobile Recharge service is available for any bKash/ Rocket/ Nagad/ SureCash Account holder to recharge any Grameenphone, Banglalink, Robi, Teletalk and Airtel number. You can recharge to your own mobile account or other owner’s mobile account number.

Bottom Line

According to Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, about 33% of the total population of Bangladesh has no access to formal banking service, or any micro-financial institution. In this situation, MFS appeared as a boon for the rural unbanked people in Bangladesh. MFS has successfully brought around five crore unbanked Bangladeshi people under formal financial services in the last few years. According to Bangladesh Bank data, the average daily transaction through MFS is about Tk 1263.96 crores in November 2019.

Recently, MFS initiatives are flourishing in Bangladesh. With the aim to develop a highly competitive, economical, commercially-viable, and secure MFS market in the country, Bangladesh Bank issued MFS guideline for Banks in 2011.

bKash (BRAC Bank) currently dominates the MFS space accounting for 80% of the market followed by Rocket (DBBL) claiming 17% of the total market-share. The two leading MFS providers (bKash and Rocket) are dominating 97% of the country’s total MFS market share.

So far we have highlighted the major features offered by the top 4 (bKash, Rocket, SureCash and Nagad) MFS platforms in Bangladesh. All of these MFS platforms are easy to use. The customers can avail these MFS services through downing respective apps from the Google Playstore.

All of our discussed MFS platforms provide cash deposit, and cash withdrawal service. But Bkash and Rocket MFS are leading ahead of the MFS platforms by virtue of their wide-ranging money transaction service that include money transfer to mobile account from bank and debit card.

MFS platforms in Bangladesh have created new opportunity for purchasing goods online from e-commerce website. In this race, bKash and SureCash MFS left the others behind. You can send online payments and utility bills via bKash MFS. You can also send utility bills and e-commerce payments through SureCash MFS. Besides these, using SureCash platform, you can pay educational institute fees, which is certainly a huge plus.

The banks provide interest on deposits, whereas the MFS platforms in Bangladesh offer interest on your mobile financial balance. bKash offers a good amount of interest per annum for keeping money in your bkash mobile account. Nagad provides a considerably higher rate of interest for saving in your Nagad account.

Undoubtedly, the current MFS platforms have created new opportunities for people in doing business, education, saving and other personal tasks in a faster and smarter way.

---

Read: Mobile Insurance Offers in Bangladesh

Several pioneer telecommunications companies of Bangladesh – Grameenphone, Robi, Airtel and Banglalink – are offering beneficial mobile insurance plans for their valuable customers under certain rules. In this article, we would focus upon the key features of the best mobile insurance offers in Bangladesh. Stay with us!

What is Mobile Life Insurance?

 ‘Mobile Life Insurance’ is a special kind of Life Insurance program offered by the telecommunication service providing companies. It provides protection against the subscribers’ risk-burden of life-loss through cash benefit. And, the monetary compensation is paid at the event of death, or accident, or hospitalization of the registered subscriber. 

Unlike general life insurance programs, the mobile life insurance plans don’t require their subscribers to deposit premiums. The subscribers are required to follow some procedures like registration to avail these insurance benefits.

Life Insurance Plan ‘Nirvoy’ by Grameenphone:

Grameenphone (GP), the pioneer telecommunication service provider in Bangladesh has launched a life insurance plan called ‘Nirvoy’ for their valued subscribers in 2013. Unlike the regular life insurance products, ‘Nirvoy’ is a free life insurance plan which is availed by the GP customers (prepaid and postpaid)through recharging a nominal amount to their respective GP SIM numbers. 

The goal of ‘Nirvoy’ life Insurance plan was to bestow an opportunity to the GP subscribers to minimize the risk-burden upon their lives. Under this life insurance product, GP is supposed to provide monetary compensation when any registered customer succumbs to death during his/her covered insurance period.

The above graph represents the slab-wise Life Insurance coverage under ‘Nirvoy’ plan. The insurance plan starts from the minimum monthly recharge of 150 BDT. ‘Nirvoy’ life insurance coverage, GP offers maximum 50,000 BDT for their honorable subscribers who recharge 500 BDT or more per month. To avail this offer, the GP subscribers need to register through mobile phone (via USSD) or visit any nearby GP service point.

Life Insurance Offer ‘Daktarbari’ by Banglalink

Banglalink (BL) has launched a digital health care platform ‘Daktarbari’ on the 22nd August in 2019. ‘Daktarbari’ Premium Services include three types of Insurance benefits. Those are:

• Hospitalization Cash Coverage Insurance
• Accidental Medical Reimbursement Insurance
• Life Insurance (Complimentary).

To provide the insurance benefits under ‘Daktarbhai’ platform, the covered subscribers are divided into five categories on the basis of monthly deduction from their respective BL mobile accounts.

Table 1:  Banglalink ‘Daktarbari’ Insurance Coverage for Daily Plan.

Coverage Code	Monthly Deduction from Subscriber (BDT)(Excluding Tax)	Complimentary Life Insurance (BDT)	Cash Coverage for Hospitalization (in one month)	Accidental Medical Reimbursement (in one month)
D1	2-18	10000	NA	NA
D2	20-28	10000	10000	NA
D3	30-48	10000	15000	2000
D4	50-58	10000	20000	3000
D5	60-62	10000	30000	5000

To avail these insurance benefits, the BL customers can choose the daily (2 BDT + Tax), monthly (50 BDT + Tax) or yearly (575 BDT + Tax) charge deduction plan. 

Insurance offer ‘Myhealth Combo’ by Robi

RobiAxiata Ltd offers life insurance as well as hospitalization cash insurance benefits under their ‘Myhealth Combo’ service since November 2016. Complying with the terms of Myhealth Combo plan, the covered subscribers have been categorized into seven slabs on the basis of their chosen monthly deduction plan.

The Life insurance benefits under Myhealth Combo plan fall under monthly policy. The insurance coverage would be provided to the nominee (chosen by the eligible subscriber) at the event of the covered subscriber’s death caused by any reason, like natural or accidental.

Table 2: Insurance Coverage under Myhealth Combo Plan by Robi

Service Plan Type	Monthly Deduction (Excluding VAT, SC,SD) (BDT)	No. of Deduction Per Month	Insurance Coverage (BDT)	Hospital Cash Insurance (BDT)
1	2-8	1-4	5000	NA
2	10-18	5-9	10000	NA
3	20-28	10-14	20000	NA
4	30-38	15-19	30000	NA
5	40-48	20-24	40000	250
6	50-58	25-29	50000	500
7	60+	30-31	60000	1000

‘Hospital Cash Insurance’ offer under ‘Myhealth Combo’ service is a monthly policy. Unlike ‘life insurance coverage’ the hospital cash insurance is not available to all Robi subscribers. It is availed by the eligible Robi customers who have subscribed for service plan type 5 to 7 (see table 2). The Robi subscribers can register this service through USSD.

Life Insurance Coverage under ‘Myhealth Combo’ Offer by Airtel

Airtel Bangladesh Limited has launched Digital health platform ‘Myhealth Combo’ plan. The subscribed Airtel customers are divided into five categories under ‘Myhealth Combo’. Not all subscribers are eligible for insurance benefits.

Table 3: Insurance Coverage under Myhealth Combo Plan

Category	Total monthly Deduction in BDT (Excluding VAT, SC,SD)	No of Deduction Per Month	Hospital Daily Cash Benefit (BDT)	Life Insurance Coverage (BDT)
1	28	0-14	NA	NA
2	30-38	15-19	NA	5000
3	40-48	20-24	250	5000
4	50-58	25-29	500	5000
5	60+	30-31	1000	5000

The ‘Hospital Cash Coverage’ benefits are quite similar to the hospitalization monetary compensation offered by Robi’s ‘Myhealth Combo’ plan. The last three slabs (category 3 to 5) are eligible for hospitalization cash insurance. A covered Airtel customer can avail a maximum of 1000 BDT for monthly deduction of 60 BDT (excluding VAT, SC, & SD). The ‘Airtel’ Subscribers can register for the mobile insurance under ‘Myhealth Combo’ plan via USSD.

Bottom Line:

Mobile Life Insurance offers protection to the “insured” subscriber and his/her family by paying a monetary compensation at the event of loss of life. Some mobile insurance plans include accidental reimbursements and hospitalization cash benefit.

Grameenphone (GP) has brought ‘Nirvoy’ life insurance plan for their trusted customers. Under this plan monetary compensation is provided at the event of the covered subscriber’s death. A covered subscriber can get life insurance benefit of 50000 BDT at maximum.

Banglalink (BL) provides mobile insurance benefit under their digital health platform ‘Daktarbari’.  These insurance benefits include coverage for hospitalization, accident, and death. Here all slabs are applicable for complimentary life insurance benefit of 10,000 BDT. The eligible subscribers can avail up to 30,000 BDT for hospital cash coverage and maximum 5000 BDT for accidental reimbursement.

TheRobi subscribers can enjoy mobile insurance under the ‘Myhealth Combo’ service offered by the company. Robi offers insurance benefits for occasions of hospitalization and death. On the highest end, a covered Robi customer can get 60,000 BDT for life insurance and BDT 20000 BDT for hospital cash coverage per year.

Airtel provides mobile insurance offer under ‘Myhealth Combo’ service. The ‘hospital cash benefit’ offer is almost analogous to the propositions of Robi’sMyhealth Combo service.

So far we have discussed several mobile insurance offers provided by the major telecommunication service providers in Bangladesh. These benevolent offers can bestow support to many people in their rainy days.

---

Read: Home Loan in Bangladesh 2020.

As the old saying goes, “Home is where the heart is.” And no doubt, the heart would be much at ease if there was no home rent to worry about. Not to mention purchasing land, or apartments, or building structures, or renovating existing buildings requires massive investment. The good news is the real estate industry is booming in Bangladesh. Simultaneously, many reputed government-approved banks and financial institutions in Bangladesh are offering lucrative home loan deals under easy conditions. Let’s explore the best home loan in Bangladesh.

How Do Banks Choose a Potential Borrower for Home Loan in Bangladesh?

Bangladesh Bank has a specific policy for sanctioning home loans. Each Government approved bank in Bangladesh has individual policy complying with these guidelines of Bangladesh Bank. When potential clients apply for home loans, the banks evaluate those applications on the basis of their respective policies. In this section, we are going to discuss the key criteria appraised by the scheduled banks before approving a home loan.

• Property Age

In Bangladesh, the Government approved banks provide home loans under several categories, like apartment purchase, apartment renovation, construction of semi-pucca house, renovation of an existing house, etc.

When a potential borrower applies for a home loan for purchasing an apartment, the banks tend to verify the age of property through its registration date. Generally, the scheduled banks in Bangladesh show more interest to sanction home loans for purchasing newly constructed real estate properties than old ones.

Surveying a number of reputed banks in Bangladesh, we found that the scheduled banks usually provide home loans for apartments aged not more than 20 years old. A few banks, like prime bank, EBL, Bank Asia, etc. might show further flexibility for allowing home loans for old apartments. In simple words, the fresher the property is, the higher the probability of getting ‘home loan’ approval.

• Range of Income:

An individual’s monthly earning represents his/her ability to repay any kind of personal loan. Banks expect a minimum range of gross income per month to choose a potential client for home loan approval.

Our survey shows that most of the scheduled banks in Bangladesh are willing to provide home loans to the job holders and professionals who earn at least 40,000 to 50,000 BDT per month. However, the requirement may slightly increase for the self-employed people like doctors, freelance professionals, consultants, etc. Some banks have flexible rules for Government officials.

However, the earning requirement for home loan is not a fixed issue, as it varies depending on the total amount of loan including interest. For instance, a client has applied for 1 crore (BDT) for purchasing an apartment. Another client is expecting only 50 lacs (BDT) for undertaking renovation tasks. In this station, banks would expect a higher level of monthly earning for the first client than the second one.

• Debt Burden Ratio (DBR):

DBR is calculated on the basis of a prospective borrower’s monthly gross earning against his/her liability. The liabilities may include monthly expenses, house rent, interest rate of another loan, etc. In most of the cases, the scheduled banks try to approve home loan applications when the potential debtor’s DBR value is comparatively low.

However, DBR limit is not a fixed issue. In fact, the maximum allowable DBR margin might vary from one client to another depending on his/her level of earning. For instance, an individual’s monthly income is 40,000 BDT. Now, usually the banks won’t offer him a loan if his DBR crosses 45%. However, the same bank may allow home loan for another client scoring up to 60% (DBR), when s/he earns about 2 lacs (BDT) per month.

In the above diagram, we have compared the maximum allowed DBR limit by a number of prominent banks in Bangladesh for home loan provision. The scheduled banks hardly allow home loans, when the client’s DBR profile exceeds 60%.

• Length of Work Experience

Work experience is another significant factor for getting home loan from different banks in Bangladesh. While reviewing an application for home loan, the scheduled banks consider several issues under work experience criterion like, job category, number of servicing years, reputation of the employer organization, stability of employment, etc. In case of the business owners, the banks tend to see the age of trade license.

In the above graph, we have compared the required job-experience (for home loan) by some leading banks in Bangladesh. The scheduled banks usually look for 2 to 3 years of experience for service holders, and self-employed professionals. Some banks set a bit higher margin for the business owners.

• Age Range:

Usually the loan repayment tenure of any home loan is continued for a comparatively long period. That is why the scheduled banks put emphasis on the borrower’s age limit during the process of home loan approval. However, the borrower’s age level is counted as his/her prospective age at the end of loan tenure.

For instance, the ‘X’ Bank allows up to 65 years for providing home loan. Now if an individual aging 40 years applies for the home loan, then s/he can avail 25 years of loan repayment tenure, which means at the end of loan tenure the borrower’s age would be 65.

Our Research reveals that the majority Banks in Bangladesh are offering home loans for individuals aged utmost 65 years – at the end of loan tenure. The minimum age to get a home loan varies from bank to bank.

Generally, the scheduled banks provide loans to the deserved candidates aged at least 21 years old. However, this minimum age limit can be a bit lower, – not under 18 years – if the borrower’s income profile is outstanding.

How to Find the Best Deals for Home Loan in Bangladesh?

At present a considerable number of banks are offering lucrative home loan offers on the market. It is quite confusing for any individual to pick the best banks for home loans in Bangladesh 2020. In this section, we would focus on some essential factors you need to consider for choosing the right bank or financial organization for availing a home loan.

• Home Loan Ceiling

According to the policy of Bangladesh Bank the ceiling for home loan should not exceed 12000000 (One Crore and Twenty Lacs) BDT. In exceptional cases, banks may approve home loans beyond this ceiling. However, the banks can also lower this ceiling amount according to their respective policies.

In general, most banks allow 12000000 BDT for home loans, but a few banks like, Uttara Ban, Jamuna Bank, Pubali Bank, HSBC bank, etc. offer 7500000 to 10000000 BDT as maximum amount for home loan.

• Minimum Loan Amount

Not all borrowers are looking for a high amount of money for purchasing apartment or home-construction. Some people are willing to take home loans for renovation purpose.

Generally, the banks can approve as low as 500000 BDT for home loan. However, some banks are less interested in sanctioning low amount money under their home loan offers.

• Ratio of Loan Amount to Property Value

When you are planning to take a home loan for buying any property, – like home or apartment – the banks won’t provide the total value of the property. Banks calculate the Forced Sale Value (FSV) of the property.  Now what is FSV? For instance, a property values 100 BDT in normal situation. Now if it is sent to action for immediate sale and gets sold at 70% of it’s normal price. Now it’s FSV would be 70 BDT.

The majority of the scheduled banks in Bangladesh provide 70% of the property value as a home loan, complying with the policy of Bangladesh Bank. However, some banks might allow home loans at lower FSV ratios depending on their respective policies. Out wining the other banks Delta Brac Housing (DBH) and IDLC is offering 80 to 85% of the property value which is certainly a blessing for the ambitious borrowers!

• Interest Rate and EMI

For any personal loan, the rate of interest affects upon the EMI (Equated Monthly Interest). On average, the scheduled banks in Bangladesh keep their interest rate floating during the loan tenure. So, it would be wise to compare the initial interest of different scheduled banks for choosing the best home loan deal in Bangladesh.

The above graph shows a comparative view of initial interest rates set by some leading Banks in Bangladesh. On average, the rate of interest is hovering around 10.5 to 11.5 percent. However, a few banks like City Bank, Eastern Bank Limited (EBL), etc. sanction home loan at lower initial interest rate (9.9%). While some other banks demand a bit higher initial rate of interest (up to 16%) for home loan provision.

• Loan Tenure

Unlike other personal loans like education loan or auto loans, the home loan covers a huge amount of money which usually runs for a lengthy tenure.  But not all banks allow the longest loan repayment tenure for home loan.

Another thing to consider is, the borrower age is linked with amount of loan tenure. Therefore, the loan tenure might vary from one borrower to another. For example, the ‘Y’ bank allows maximum 65 years long tenure. Now an individual aged 45 years is applying for home loan. S/he can get maximum 20 years for repaying the loan; whereas, a 35 year old borrower can avail a longer tenure of 30 years for loan repayment.

While reviewing the home loan deals offered by various banks in Bangladesh we found that the maximum loan repayment tenure hovers around 20 to 25 years depending upon the current age of borrower. However, a few banks sanction home loans for comparatively limited tenures.

Bottom Line:

Owning own residence is no more a distant dream today, if you can find a suitable home loan deal. However, it takes both determination and ability to acquire a dream home. Fortunately, many banks are ready to provide you this support. However, no blessing comes without some drawbacks. The EMIs of Home loan may create a huge burden overhead. And, this traditional but pragmatic thought prohibits many people from owning their dream homes. 

So far we have analyzed a number of the eminent banks in Bangladesh who are currently offering lucrative home deals on the market. Summarizing the home loan deals of our researched banks, we found that the scheduled banks in Bangladesh mostly prefer newer apartments (not older than 20 years) to old apartments for approving home loans. 

Generally, the banks select prospective borrowers who earn at least 40000 to 50000 BDT per month depending on the type of occupation. While evaluating the Debt Burden ratio (DBR) of the client profiles, most of the scheduled banks tend to keep their DBR range under 45 to 60%. The banks usually demand 2 to 3 years of work experience depending on type and reputation of the employment. 

In general, the banks sanction home loan to clients aged around 21 years at minimum. And, the maximum age limit is usually not more than 65 years. Most of the banks provide 1.2 crore (BDT) loan ceiling starting from a minimum 5 lacs (BDT). And, under home loan deals, the banks offer 70% of the property value, in general. Though the rate of interest fluctuates from bank to bank, usually it hovers between 10.5 to 11.5%.

Due to the limitation of adequate manpower and fund, we couldn’t survey all banks. Hope our research helps you to pick the best bank for home loan in Bangladesh fulfilling your needs.

---

You May Also Like: Car Loan in Bangladesh 2020.