MDB HOME LOAN

PRODUGT PROGRAM
GUIDELINE (PPG)

Version: 1.1
Release: April 2015

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RETAIL DISTRIBUTION
Midland Bank Ltd.
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1.0 PRODUCT RANGE Purchase of ApartmenU House

Purchase of apartment and house for residence purpose.

House or Apartment Renovation / Extension / Completion

Facility against the existing complete / almost complete apartment owned by the
customer.

Against value of the entire building and land owned by the customer for completion of
the property and renovation purpose. A portion of the building must be completed and
facility amount will be determined based on the value of that completed part only if
customer wants to take disbursement at a time.

Take Over & Renovation / Construction -

To purchase customer's liability against the property to be financed from other Bank /
Financial lnstitution and additional amount for renovation of apartment or house.

Customers applying for Take Over loan generally need additional financing in order to
complete construction, renovation or registration. Such cases can be met with additional
financing along with taking over the loan from other Fl. This is also a popular industry
practice.

Renovation work to be confirmed by submission of valid Price Quotation from

Construction Company / Contractor and issuance of Pay Order to that vendor. 50% of
the estimated renovation / construction value may be financed on top of take over
amount.

The takeover facility must have a repayment history of at least 12 months and there
should not be any default in EMI repayment.

House Building Loan -

Facility against customer's property where building plan was duly approved from
concerned authority, foundation work and construction work completed and the
proposed property is visible (roof/slab casting need to be completed)

Disbursement will be made based on 50% of the land value in several phases upon
claims on progress of constructions (depending on the detailed phase out plan of
construction) to be certified by the bank official and/or enlisted surveyor. Property to be
appraised before fund release for each phase of disbursement to assess the
development of construction work.

At least one EMI must be paid before each phase of disbursements.

2.0 CUSTOMER SALARIED

SEGMENTS Employees of Government Organizations, Banks, Multinational Companies, Large &
Medium Local Corporate Houses, Reputed Educational lnstitutions, Non-Government
Organizations, Supranational Bodies, and Semi-Government Organizations.

SELF.EMPLOYED PROFESSIONAL
Consists of self-employed professionals, e.g. Doctor, Engineer, Architects, etc

Customer has to maintain account with Midland Bank Ltd. or with other banks for at
least 12 monlhs.

The customer should be in the same profession for a minimum period of 2 years.

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BUSINESS PERSON
Consists of businesspersons in reputable business.

The customer should be in the same business for a minimum period of 2 years.

The customer should be in the same business for a minimum period of 2 years.
Customer has to maintain account with Midland Bank Ltd. or with other banks for at
least 12 months.

LANDLORD
Consists of landlords having a stable source of earnings from rented premises(s).

Proof of ownership documents is mandatory for considering rental income of any

property. However, rental income from Semi-Pacca/ Tin shed building will not be
considered.

100% SECURED AGAINST FD / Monthly Savings Schemes

Consists of salaried and other segments.

3.0 LOAN AMOUNT MINIMUM AMOUNT

BDT 500,000/- (Five Lac Taka) Only

MAXIMUM AMOUNT

BDT 12,000,0001 (One Crore Twenty Lac Taka) Only

4.0 TENOR MINIMUM TENOR

3 years (36 months)

MAXIMUM TENOR
20 years (240 months)

NOTE:
) No fraction of year is allowed. lt will always be rounded down.
) Loan tenor will be decided based on the age of the property owner and / or the
financially solvent person, whichever is lower.
) Tenor will end one year before the allowable maximum age of the applicant to adjust
the fractional EMI in case of variable interest rate..

s.0 LoAN TO VALUE (LTV)

RATIO Loan to Value will be calculated based on the property value of the proposed financing
property. But under no circumstances loan amount should not exceed 70% of force sale
value at current status.

LTV Calculation Procedure:

Complete Apartment / House Purchase & Take Over:
LTV to be calculated based on the Present Value of the property but facility amount
should not exceed Forced Sale Value at present status.

Apartment Pu rchase from Categorized De,veloper:

LTV to be calculated on the Completion Value of the apartment or Agreement Value of
the Apartment, whichever is lower. But facility offered should not exceed on Completion
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MDB HOME LOAN PPG -Vensrorl 1.1 - Apnt201S bilk ft is.tune.AnD*
Forced Sale Value.

Apartment Purchase from Non-categorized Developer:

LTV to be calculated based on the Present Value of the apartment or Agreement Value
of the Apartment, whichever is lower but facility amount should not exceed Forced Sale
Value at present status.

Renovation of lndependent House:

LTV to be calculated based on the Present Value of the property but facility amount
should not exceed Forced Sale Value at present status.

6.0 AGGREGATE INDIVIDUAL

FINANCING Two facilities per individual for maximum exposure of BDT 12,000,000/- (one crore
Twenty Lac Taka) Only

ANY INDIVIDUAL PROJECT

The Bank may consider financing maximum 50% at any individual project among
different customers.
(e.9. for any individual project consisting of 10 apartments, the Bank may consider
financing maximum 5 apartments)

NOTE:
The above sum excludes any full cash backed facilities

7.0 ADDITIONAL FAGILITY Maximum 2 facilities can be offered against tne sa

the combined exposure cannot exceed BDT 12,000,000/- (one crore Twenty Lac Taka)
Only

Second facility to be entertained only after completion of satisfactory repayment of the

first facility at least for 12 months.

CONDITIONS:
(1) Only one 30 DPD+ in last 12 months
(2) No 60 DPD+ in last 12 months
(3) No over dues at the time of applying

NOTE:
Properties that are already secured with the Bank in the form of registered mortgage will
fall under this category.

8.0 APPLICANTION Minimum 02 (Two) applicants are necessary

CRITERIA exception as below:

PRIMARY APPLICANT -
owne(s) of the property must be the primary applicant(s) for any home loan application,
if the property owner(s) and the main financially eligible person happen to be different.

SECONDARY APPLICANT -
Secondary applicant is necessary for all Home Loan facility in order to mitigate the
death risk and limited to family member viz. Spouse, parents, Siblings (Brothers &
Sisters), and children only. lncome of the secondary applicant may or may not be
considered depending on their eligibility & consent.

) Co-Borrower -
A secondary applicant who meets all the criteria applicable for primary applicant (i.e.
career length, location etc.) and whose income is considered to derive the final loan
eligibility.

F Co-Applicant -
A secondary applicant whose income is not considered in deriving ellgibility & has been
associated with the facility only because of title ownership or the purpose of the

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secondary client.

MAXIMUM NUMBER OF APPLICANTS

Maximum 4 (Four) applicants can be allowed altogether including 02 (two) co-borrowers
in a single facility application

NOTE:

incumbent is married, personal guarantee from spouse to be attained.

to be obtained from all those property owner(s) who are not considered in the
application.

become co-borrower to support the applicant's income for better financing amount.

will be jointly and severally liable for payment of the proposed facility.

SINGLE APPLTCANT / pROV|StON FOR LtFE INSURANCE pOLtCy (Ltp)

Generally second applicant is necessary for all the proposals except for the cases
where the primary applicant is unmarried or single sibling of parents and moreover
including parents in the application would affect the loan tenor due to their age.

ln such cases, the borrower (i.e. the property owner and financially eligible person)
would have to assign his / her Life lnsurance Policy (LlP) in favor of the Bank for the
entire tenor of the facility to mitigate the death and disability risk that may be caused to
the borrower.

NOTE:
No LIP or Co-Applicant is required if the facility is 100% secured against FD / MSS as it
will work as an alternate to LlP.

9.0 AGE CRITERIA MINIMUM AGE

Primary applicant / Co-borrower/ Co-applicant's minimum age should be 21 years

MAXIMUM AGE
Salaried
62 years or retirement date as mentioned in Letter of lntroduction (LOl) whichever is
lower at the end of the loan tenor.

Self-employed Professional / Businessman and Landlord -

65 years at the end of loan tenor.

100% Cash Backed Facility Secured against FD / MSS -

70 years at the end of loan tenor. However, if anyone wants to change the security
mode (i.e. from cash covered to registered mortgaged), then income assessment must
be done and the tenor will be as per PPG (i.e. 62 years for salaried individuals and 65
years for Self-employed Professional / Businessman and Landlord).

NOTE:

considered to determine maximum tenor of the facility.

1O.O MINIMUM INCOME MINIMUM lNCOME

REQUIREMENTS Minimum aggregate income BDT 50,000/- (Fifty Thousand Taka) Only whereas one of
the applicants must have minimum income of BDT 40,000/- (Forty Thousand Taka)
Onlv.

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Minimum individual income for Government employees is BDT 40,0001 (Forty

Thousand Taka) Only.

ln case of multiple applicants, each of the applicants must have a minimum income of
BDT 20,000/- (Twenty Thousand Taka) Only for income aggregation.

NOTE:

sources duly supported by valid income documents.

Additional lncome from other sources may also be added to monthly net income
11.0 ADDITIONAL INCOME provided the customer is able to submit documentary evidence of the same for at
least 12 (twelve) months

When customer receives part of his salary in cash in addition to his other allowances
will be added to his gross salary to arrive at an overall monthly remuneration
provided the customer is able to submit documentary evidence of the same for at
least 12 (twelve) months. lncome is subject to substantiation from the respective
company.

ln case of rental income, at least 15o/o ol the total rental income must be reflected on
the Bank statement. However, 100% rental income reflection must be present for
premises rented out to corporate bodies and the rent agreement must have a tenor
of at least 2 years. Rental income from Semi-Pacca/ Tin shed building will not be
considered.

NOTE:

TA/DA, phone bill etc. will not be considered in gross monthly salary/income. Any
other salary/income components which are not paid in monthly basis will not be
considered.

12.0 WORK EXPERIENCE

GOVERNMENT SALARIED
Must be confirmed employee

OTHER SALARIED
Customer should be confirmed employee and should have a total of two years work
experience including experience with the present and previous employer.

They must be employees of multinationals, middle and large corporate bodies and
business entities, NGOs and other reputable entities.

CONTRACTUAL EMPLOYEES
Contractual employees of UN Bodies and Development Organizations viz. UN, UNDP,
UNICEF, UNESCO, FAO, WHO, CARE, Save the Children, lFC, SEDF, WORLD BANK,
lMF, ADB etc. can be eligible provided the following conditions are met:
. Minimum length of service in this kind of organizations should be at least 5 (five)
years.
. Last 02 (two) contract renewals along with the copy of the appointment letter is
provided.

SELF-EMPLOYED PROFESSIONALS
Customer must have 2 (l-wo) years professional experience in the industry

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EUSINESS
Maximum 02 (Two) business experiences can be considered and each of the
businesses must have minimum 02 (two) years business experience.

LANDLORD
Not Applicable

NOTE:
ts ln case of assessing fuC from customers other diversified business entity where
business started less than 03 (three) years ago, proof of continuation of previous
business is required.

13.0 AGCOUNT
RELATIONSHIP SALARIED
D FullSalary Reflection -
. Employees of Multinational Companies (MNC) to be entertained immediately after
joining the organization provided the applicant is a confirmed employee and has total
work experience of more than 01 (one) year including experience with the present and
previous employer. Declaration of salary in LOI or Take home / Net salary whichever
is lower to be considered.

. 06 (six) Salary reflections required if working in any other organizations other than
MNC. Declaration of salary in LOI or Take home / Net salary whichever is lower to be
considered.

Partial Salary Reflection -

Pay slips for the last 06 (six) months must be provided to support additional income.
However, the additional income must be mentioned in the organization's LOl.
Declaration of the combined salary in LOI or Take home / Net salary whichever is
lower to be considered.

tr Full Salary Reflection in Cash -

Salary completely received in cash is not acceptable in any case whatsoever.

SELF-EMPLOYED PROFESSIONALS
Two Bank Accounts in the name of the applicant (i.e. Doctor) may be considered subject
to the fact that there are no interbank transactions. However, if the account is a joint
account with the Co-Applicant or Spouse (whose income is not considered in
assessment), 50% income can be considered after assessing that Bank statement.

BUSINESS
. Limited (P!rt. & Public) Company A/C: Two accounts, both being existent for at least
12 months, in the name of the same business entity may be considered subject to the
fact that there are no interbank transactions. Personal Bank account statement of the
applicant must be submitted to support the earnings from the company.

Business Ownership Requirements for Limited Companies:

Private Limited Company - 20%
Public Limited Company - 5%

. Partnership Company A/C: Two accounts, both being existent for at least 12
months, in the name of the same business entity or in the name of all the partners
involved in a particular business may be considered subject to the fact that there are
no interbank transactions. Personal Bank account statement of the applicant must be
submitted to support the earnings from the company.

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Proprietorship Company A/C: Two accounts in the name of the business entity and /
or in the personal name of the proprietor may be considered subject to the fact that
there are no interbank transactions. However, if the account is a joint account with the
Co-Applicant or Spouse (whose income is not considered in assessment), 50% income
can be considered after assessing that Bank statement.

LANDLORD
At least 15% of the total rental income must be reflected on the Bank statement.
However, rental income from Semi-Pacca/ Tin shed building will not be considered.

NOTE:
)Apart from the mentioned account statements, other statements from different
business entity will also be considered.
) ln cases where customers have changed the Banking relationship, transaction done in
previous Bank account statement can be considered in order to complete continuation
of latest 01 year Bank account transaction.
) Shareholding contains ownership of the borrower singly or along with the co-borrower
/ guarantor. However the income assessment shall be done based on the custome/s
shareholding portion only.

14.0 DEBT BURDEN RATIO A. For all seqments:

(DBR) lncome Range Ratio
From 25,000 to below 35%
30,000
From 30,000 to below 40o/o
50,000
From 50,000 to below 50%
75,000
From 75,000 to below 55%
150,000
From 150,000 and above 60%

) 3% of the credit card / Unsecured OD limit will go into DBR calculation.

) Monthly installments will not be considered in DBR calculation for cash back secured
loans, DPS, lns Premium, etc.

Computation of income for Salaried Applicant

. Based on salary certificates/salary slips/Bank statement.
. lf salary reflections in the Bank statement are not consistent due to variable
allowances like overtime, the average for the last 6 (six) months or 12 (twelve)
months should be calculated in order to consider income.
. lncome apart from salary will be considered if supporting documents are provided
and reflected in bank statement.

Comoutation of income for Non-salaried applicant:

1. For non-salaried applicants, the business credit turnover for any particular business
with any of the banks may be used to compute the income based on the average
lndustry Net Profit Margin (as per the list annexed). The bank account should be
existent for a minimum period of one year. Two bank accounts may be considered for
this purpose.

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@directorsofalimitedcompanyorpartnerSofbusiness
concerns - to compute his income based on his shareholdings only'

All bank statements of the concern meeting such criteria will be considered for income
assessment.

B. DBR Advantaqe:
The DBR Advantage shall be applied only in cases of Home Loan facility.

1. DBRadvantaqe:
o Customers residing in own or family owned residence will enjoy 5% additional DBR
Advantage provided that the total limit of DBR does not exceed 60% for customers
having income up to BDT 200,000/- (Iwo Lac Taka) Only.
. However, customers having more than BDT 200,000/- (Two Lac Taka) Only will enjoy
maximum DBR Advantage of 65%.

2. lncome Criteria:
. DBR 60% -Aggregated net income of customers must be BDT 100,000/- (One Lac
Taka) to below BDT 200,000/- (Two Lac Taka) where at least one of the borrower
must have an income of BDT 50,000/- (Fifty Thousand Taka) or more.

. DBR 65% - Aggregated net income of customers must be BDT 200,000/- (Two Lac
Taka) or above where at least one of the borrower must have an income of BDT
100,000 (One Lac Taka) or more.

Computation of income for Landlord applicant:

Reflection in the rental agreement or rent receipt and bank statement (minimum 15%
a/c reflection). When rental income is received in cash, it will be verified through the
Bank's enlisted third party verification company.

) Computation of income for Self-Employed Professional / Doctors:

Self employed Doctors: Based on the bank statement, 50% of monthly average credit
turnover will be considered as income.

Maximum 02 Owo) Bank account statements of the concern meeting such criteria will
r be considered for income assessment.
lon
Doctors having no significant account reflection will provide declaration of income in
their official letter head pad or company letter head pad and will be assessed based on
the declared amount after comprehensive Contact Point Verification (CPV) by the Third
Party Verification Agency as per verification criteria mentioned in Clause 39.1. ln such
case, loan will be provided only in case of RGM.

15.0 LOCATION OF THE Primary Applicant / Main Borrower / Co-Borrower / Co-Applicant

BORROWER
bank has its own branch at the time of availing loan facility.

NOTE:

Special consideration will be given to the following customer segments who may either
reside or work outside Dhaka & Chittagong Metropolitan Area:
. Govt. Official,
. Doctors having more than 5 years of experience or FCPS or equivalent certificate,
. Employees in the position of 'Manager' or above of MNC and reputed large local
company having Ho in Dhaka or chittagong, outside Dhaka & chittagong where MDB
has branch representation.

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MDB HOME LOAN PPG _ VENSION 1 .1 _ APRIL 2015
16.0 LOGATION OF THE Property under the Home Loan is to be located in Metropolitan Area. The additional
PROPERTY collaterals, if offered, may be accepted for property located in district
17.0 TYPE OF PROPERTY
TO BE FINANCED
18.0 TYPE OF SECURITY /
COLLATERAL
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headquarters/municipal areas on a selective basis.
NOTE:
i. Financing in Low Profile and Flood Prone areas would be restricted'
ii. Properties that have RAJUK / CDA or concerned authority's approval will be
considered for fi nancing.
Apartments / houses on Leasehold and Freehold land:
Government approved projects / competent authority/ prime locations on priority
basis. Non-REHAB developers' project is highly discouraged. However, financing
against non-REHAB member may be considered by creation of RM (Registered
Mortgage) based on customer profile and project location.
loan tenor)
conditions to be complied.
(a) Specific approval from commercial uses from concerned authorities (i.e.
RAJUK, CDA, DCC, etc.)
(b) Valuation agency to provide square feet usage for commercial purpose against
total square feet size of the property.
(c) Only shops, offices and establishments will fall under the definition of
commercial usage. School, Hospitals, Clinics, Manufacturing Plants I
establishments with heavy equipment, establishments / storage facility of
hazardous items, use for religious purpose, and office of benevolent
organizations will be excluded.
(d) To ensure there is no structural change in the property, valuation agency
with
provides confirmation of property structure in line approved plan.
For all cases ultimate security will be Registered Mortgage (RGM) in favor of the Bank
along with Registered lrrevocable General Power of Attorney (IGPA). However,
since the Bank need to finance properties that are under construction and will be
completed under a stipulated time mentioned on the deed of agreement between the
developer / seller and the customer, so alternate securitization agreements can be
made for a stipulated time in order to finance those properties. There are total 4 (Four)
types of securitization as below:
Registered Mortgage (RGM) in favor of the Bank along with Registered lrrevocable
General Power of Attorney (IGPA) for Non-categorized Developer or lndividual
Developer.
Tri-partite Agreement (TPA) amongst the Bank, the Borrower and the Developer for
the stipulated period mentioned in TPA to handover the property and to complete
necessary permission from concerned authority for Registered Sale Deed in favor the
Borrower and Registered Mortgage in favor of the Bank'
Four Party Agreement (FPA) amongst the Bank, the Borrower and the Developer and
the Landownei for the stipulated pelod mentioned in FP
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to complete necessary permission from concerned authority for Registered Sale Deed in
favor the Borrower and Registered Mortgage in favor of the Bank.

Registered sale Deed in favor of the Borrower plus TPA / FPA for G0 (sixty) days in
case property situated on leasehold land and developed by Non-categorized Developer
or lndividual Developer.

NOTE:
The above mentioned rri-partite Agreement (TPA) and Four Party Agreement (FpA)
is only applicable for categorized developers.

19.0 DEVELOPER Developers are categorized for loans where the property is under construction and
CATEGORIZATION requires sometime to handover to customers. There will be 03 (three) categories of
Developers:

Category A-
Top 10-15 real estate developments company of the country with good
reputation in the market.

Category B-
Renowned Developer with proven track record of timely delivery, use of right
materials and customer confidence etc.

Category C-
New and emerging developer company with at least three completed project
and three year old business entity.

ln order to categorize and enlist developers with the bank, the following key selection
criteria will be followed:
1. Company profile
2. Directors Profile.
3. Years in Business
4. Number of completed projects
5. Ongoing projects
6. On time delivery trends
7. Number of Staff
8. Technical expertise and equipments
9. Location of the projects & design etc.

The following criteria for the above 03 (three) categories will be used for financing in the
form of Tri-partite Agreements:

CATEGORY "A"
Property handover and Registered Sale Deed in favor of the borrower to be completed
within 18 months from the date of disbursement.
Registered Mortgage with Registered Power of Attorney to be completed within 24
months from the date of disbursement.

CATEGORY "B''
Proper$ handover and Registered Sale Deed in favor of the borrower to be completed
within 15 months from the date of disbursement.
Registered Mortgage with Registered Power of Attorney to be completed within 21
months from the date of disbursement.

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CATEGORY "C"
Property handover and Registered Sale Deed in favor of the borrower to be completed
within 06 months from the date of disbursement.
Registered Mortgage with Registered Power of Attorney to be completed within 12
months from the date of disbursement.

NOTE:
i. For individual seller (landowner) where property is constructed by a categorized
developer, possession handover and registration process would be same as the
categorized developer.
ii. Disbursement to be allowed under TPA against both leasehold /freehold property.
iii. For individual seller / non categorized developer disbursement will take place only
after completion of registered mortgage.

2O.O MAXIMUM AGE OF Not more than 25 years at the time of approval and 40 years at the end of the loan
THE PROPERTY tenor.

[i.e. Maximum 20 years loan tenor for a property which is 20 years old, or maximum 15
years loan tenor with a property of 25 years old, however the maximum age of the
property cannot go beyond 25 yearsl.

21.0 GUARANTOR'S
ELIGIBILITY 1 (one) Personal Guarantee is mandatory for all segments of Home Loan proposals.
Guarantor must be eligible as per following:

. Spouse/ lmmediate Family members only

22.0 MODE OF
DISBURSEMENT Guideline for disbursement has been made more specific so that the process can be
executed smoothly.

HOME LOAN
Pay Order / MDB Account Transfer in favor of Seller / Developer.

HOME RENOVATION / CONSTRUCTION

Pay Order /
MDB A"/C transfer in favor of the Vendor, Construction Company /
Contractor / Home D6cor Firm. lf renovation/construction works are done by own
arrangement then based supporting documents disbursement amount to be credited to
the customer's savings/current account.

TAKEOVER AND RENOVATION / CONSTRUCTION

PO favoring the current financier

i. Payout for settlement: Pay out through payment order will be done in this case
where the payment order will include all costs for the repayment of the Takeover
loan.
ii. lssuance of Payment Order: The amount for renovation will be issued to the
vendors through P/O. lf renovation/construction works are done by own arrangement
then based supporting documents disbursement amount to be credited to the
customer's savings/cu rrent accou nt.

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1OO% CASH BACKED FINANCING
ln case of 100% cash backed financing, full amount is to be paid to the vendor through
Pay order.

NOTE:

loan.

23.0 LEGAL VETTING, It is mandatory to get property appraisal (valuation) before final approval. Getting legal
VALUATION AND vetting and title search before disbursement is an industry practice to ensure expert and
TITLE SEARCH unbiased opinion regarding the property under consideration.

VALUATION OF THE PROPERTY / PROPERTY APPRAISAL

Valuation of property taken as security should be done by a reputed survey firm enlisted
with the bank prior to sanction/disbursement of loans.

Enlisted Property Appraisal Company / Valuer will be appointed to physically verify and
value all properties as per standard templates.

The valuation report, amongst other things must contain certifications on the following:

o Date of site visit

. Status of construction
o Market rate
r Present value of the property (with depreciation if applicable)
o Forced Sale Value at present status
r On completion value of the property
o Forced Sale Value on completion
. Market value of the property
. Current cost of construction per square feet with the amenities suggested in the
apartment / house.
o Photographs of the property inspected
. Tentative date of hand over
. % of work completion at the time of evaluation
. Cost breakdown in terms of value of land & the structure

LEGAL VETTING
Satisfactory Legal Vetting from enlisted Legal Firm is to be obtained before
disbursement.

TITLE SEARCH OF THE PROPERTY

Satisfactory Title Search Report from enlisted Legal Firm is to be obtained before
disbursement.

NOTE:
(i) The legal vetting and title search of any property must be obtained from the Bank's
enlisted outsourced legal firm before disbursement.
(ii) Both the legal vetting and the title search of the property may be obtained from the
same outsourced legal firm.

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24.0 MINIMUM DOCUMENT

REQUIREMENTS I The minimum document requirements for any home loan proposal are furnished below:

COMMON DOCUMENTS FOR ALL SEGMENTS

tr 1 Passport sized recent photograph (standard format) of all the applicants.
tr Photocopy of valid passport OR National lD of all the applicants
tr Photocopy of Latest TIN certificate.
tr Copy of loan sanction letter along with repayment account statements for all the
existing facilities of the customer.
tr Letter of allotment (issued by the developer) or Copy of Registered Deed of
Agreement for sale (between the buyer and the developer).
tr Rental agreement & house/flat ownership documents (for land lord or land lady).
tr Renovation quotation (applicable for property renovation)

SALARIED SEGMENT
tr Salary certificate from Human Resource or concerned department which must
include joining date & retirement date (if applicable).
tr Photocopy / Original pay slip (for partial cash salary).
tr Last 6 (Six) months bank account statement of salary account.

SELF-EMPLOYED SEGMENT (e.9. Doctors)

tr Certificate of professional degree (e.9. MBBS etc.)
tr certificate of Membership with respective Professional Association (e.g. BMDC
etc.)

BUSINESS SEGMENT
(i) PROPRTEORSHIP BUSTNESS
tr Copy of Trade License that reflects minimum 3 (Ihree) years experience.
tr Last 1 (One) year Bank account statement.

(ii) PARTNERSHIPBUSTNESS
tr Copy of Trade License that reflects minimum 3 (Three) years experience.
tr Partnership Deed
o Form-1 if registered by RJSC (Not Mandatory).

(iii) LTMTTED coMpANy (puBLtc / pRtvATE)

tr Copy of Trade License that reflects minimum 3 fl-hree) years experience.
tr Certificate of incorporation (RJSC certified).
tr Certified Memorandum & Article of Association (RJSC certified).
tr List of Directors/ Form Xll (RJSC certified).
tr Certificate of Commencement for business of Public Limited Company.

NOTE:
(i) lf the customer is a director of any limited company under Businessman Segment
then: Board resolution or undertaking required from the company mentioning that
they will deposit all dividends/salary (tf any) received by the appticant to MDB
account.
(iD For limited company customer the company should undertake a prior intimation
from MDB for any change or dilute of shareholding of the applicant.
(iii) The renovation quotation must be verified by the Third party cpV agency to verify
that the cost is reasonable.

SECURITY DOCUMENTS
o For Private/Freehold land
tr Ownership deed ( Photocopy)

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MDB HOME LOAN PPG-VensroN 1.1- Apnt2015 tuk ft ibcl$iu g?opth

tr Baya deed covering at least 25 years (if any)

tr Development agreemenUJoint venture agreement with land owner/ developer
tr Power of attorney
tr Power of attorney acceptance letter from concerned Government Authority
tr Recent survey report (i.e. Math Porcha duly attested)
tr CS, SA,RS, Porcha (PS, BS, RS porcha only for Chittagong)
o Mutation Porcha with Mutation proposal sheet
tr Duplicate carbon receipt (DCR) with mutation order sheet
tr Up to Date Municipality Tax Receipt
tr Up to Date Land Tax Receipt
o Non-encumbrance certificate (NEC)
tr Approval Plan/ Layout and Approval letter by RAJUl(CDA/Concerned Authority
tr Any other document asked by lawyer

o For Government / Lease-hold land

tr Lease Deed/Ownership deed ( Photocopy)
tr Baya deed covering at least 25 years (if any)
tr Development agreemenUJoint venture agreement with land owner/ developer
tr Power of attorney
tr Power of attorney acceptance letter from concerned Government Authority
tr Mutation (if any)
tr Mutation letter from RAJUT</CDA
tr Mutation letter from National Housing Authority
u Mutation Letter from Ministry of Works
tr Duplicate carbon receipt (DCR) with mutation order sheet
tr Up to Date Municipality Tax Receipt
tr Up to Date Land Tax Receipt
tr Non-encumbrance certificate (NEC)
tr Approval Plan/ Layout and Approval letter by RAJUK/cDA/concerned Authority
tr Any other document asked by lawyer

Additional BRPD (Banking Regulation & Policy Department), Bangladesh Bank

Circular Related Documents

tr Approval from RAJUI(CDA on private housing projects within their Master Plan
(applicable for land measuring 5 acres in Dhaka City Corporation and land
measuring 10 acres for any land outside Dhaka City Corporation) (lf applicable)

tr Certificate from an Engineer, Architect, or planner with regard to compliance with

BNBC (Bangladesh National Building Code, 2006) & The Building Construction Act,
1952for all buildings in Bangladesh

tr Occupancy Certificate from MJUK for every building constructed in Dhaka after
2007

tr Fire Clearance Certificate from Director General (DG) of Department of Fire Service
for any building comprising of 10 storied or more floors.

tr Environmental Clearance Certificate issued by the Director General (DG) of

Department of Environment (DOE) shall be required for industrial
units/projects/multi-story commercial or residential apartment, which contain 10
(Ten) stories or more or are above the height of 33 (Thirty Three) meters

tr Any other related documents

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MDB HOME LOAN PPG - Vensror.r 1.1 - Apnt 2015 hMh Iv thdrn'c gtuDth
25.0 MANDATORY These criteria are necessary in order to ensure optimum documentation regarding
DOCUMENT customer identification, extent of the involvement of the customer, engagement of bank
REQUIREMENTS (IN officials in the process.
ADDITION TO
STANDARD
At the time of application submission:
DOCUMENTS) r Customer KYC duly filled and signed by the introducer and Branch Manager / Sales
Manager (as perAnnexure 1).
r All fields of the first 4 pages of the application form properly completed in BLACK
INK only.
o Most lmportant Document (MlD) duly signed.
r Forwarded by source / officer and recommendation by permanent employee of
MDB (preferably line managers).
. All documents (except bank statement and property related legal documents)
required for assessing the facility eligibility must be marked as "ORIGINAL SEEN,'
by the concerned official of MDB before submitting.
. All documents (in relevant pages) to be signed by one of the borrowers to endorse
the authenticity.

To be submitted prior to disbursement:

. Money Receipt of lnsurance Policy.
o Available latest Tax Clearance Certificate (not older than previous assessment year
in case of current yea/s tax assessment is under process)
r Builders Letter and Money receipt in case of financing under TpA / FpA.
. Deed of Agreement / Allotment Letter in case of financing under TPA / FPA.
o Disbursement Advice.
Board Resolution for facilities of directors of Limited Companies where the facility
amount was assessed based on the Limited Company statements & PDC will be drawn
on the same account.

An undertaking by the customers for submitting mutation record in the name of the
present owner / customer subject to concerned authority's delivery within 180 days from
the date of disbursement (applicable only for registered sale deed in favor of the
customer and simultaneous registered mo(gage in favor of the Bank.). However for
TPA application, a separate undertaking to be obtained from the customer before
disbursement mentioning mutation record in the name of the borrower / owner to be
updated within 180 days from the date of expiration of the TPA or from the date of
registered sale deed in favor of the customer and simultaneous registered mortgage in
favor of the Bank whichever is earlier.

26.0 INSURANCE
. Property to be insured prior to disbursement
. Fire and earthquake damage risks will be covered. This will be mandatory
r Flood and Cyclone coverage will be required for flood & cyclone prone zones.
. All properties mortgaged are to be insured against at least the loan amount for the
whole tenure of the loan. At the time of disbursal, the insurance must be for a
period of at least 12 months.
. Comprehensiveinsurance
o All properties mortgaged are to be insured against property value or the loan
amount for the whole tenure of the loan.
. Property to be insured prior to disbursement covering Fire, Earthquake and Flood
damage risks for property in Dhaka metropolitan area.
r Cyclone coverage will be mandatory for cyclone prone zones, viz. Chittagong.
o At the time of disbursal, the insurance must be for the period of at least for 12
months.
. The Bank will carry out insurance. Agreements will be drafted in such a way that the

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insurance premium to be debited from the account of the customer.
. The bank will manage the renewal of insurance policies.
. ln case one time insurance facility is offered by any insurance company, the
insurance premium will be added to the cost of the house for determining the value
of the property.
. Policy should be assigned in favor of Midland Bank Ltd.

27.0 CHARGE DOGUMENTS Prior to the disbursement of the facility, the following documents are to be signed by the
applicants and the customer signs must be verified by bank official with pencil. A full set
of charge documents are attached in annexure
List of Documents:
,/ Demand Promissory Note
r' Letter of Continuation
./ lrrevocable Letter of Authority
,/ Undertaking
,/ Disbursement Advice
,/ lnsurance Coverage Letter
,/ Personal Guarantee (when asked by CRM only)
r' Debit Authority
,/ Debit Authority for insurance premium deduction

28.0 WATVERS &

FLEXIBILITIES ON Although the process is in practice but part of the process was never mentioned in the
lOO% CASH BACKED PPG clearly.
FACILITY
ln case of ',l00% secured facility, the bank can instantly resort to liquidate the security
and settle the outstanding loan amount (if, any). As a result, absence of fulfillment of
regular requirements viz. telephone at home / office, work experience etc. does not
preclude the bank from fully settling the outstanding amount in case of default.
Considering this cushion, the proposals of waivers and flexibilities are made:

MAN DATORY REQUI REMENTS

(i) Loan Tenor to be met as per the customer segment criteria in PPG.
(ii) Maximum age at the time of underwriting: 70 years.
(iii) Minimum age at the time of undenivriting: 21 years.
(iv) Bank statement and income substantiation documents to be furnished to establish
legitimate income source & some cash flow.
(v) Valuation report must be obtained prior final approval to ensure property value is not
significantly lower than the facility amount to avoid Anti Money Laundering (AML)
issues. ln cases where it is not possible to obtain valuation report before final
approval, a Letter of Indemnity to be taken from the borrower, authorizing the Bank
to liquidate the facility or reduce the facility amount to property value.
(vi) Legal Opinion is mandatory but may be obtained after the disbursal of the facility.
However, it should be obtained within one year of the disbursement.

WAIVERS
(i) Telephone at Home / Business
(ii) Work / Business Experience
(iii) Shareholdings in the Company
(iv) Location of Borrower (outside Dhaka and Chittagong Metropolitan Area)
(v) Property Type
(vi) Property Age

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MDB HOME LOAN PPG - Venslorl 1.1
(vii)
- Apnt 2015 b*k fw iltlssir. lpoDth

lncomeAssessment
(viii) Scorecard

FLEXIBILITIES
(D Property may be located anywhere with MDB Branch representation.
(iD Loan to be extended at any construction stage of the property.
(iii) Purpose may vary: for all property type.
(iv) Legal clearance is not mandatory prior to facility disbursement
(v) No Undated Cheque (UDC) required for this facility
(vi) Co-applicant / co-borrower is not mandatory
(vii) lnsurance is not required

CONDITIONS
(D Tax Certificate will not be issued unless client creates Registered Mortgage over the
prope(y in favoring the bank.
(ii) Legal Clearance to be obtained within 180 days from the date of disbursement.
CAD to drive the process.

SECURITIES
(i) FDR with MDB (90% of FD will be sanctioned as facility amount).
(ii) Monthly Savings Schemes (MSS) with MDB (90% of Savings amount witt be
sanctioned as facility amount)

NOTE:

backed to registered mortgage), then all the above waivers will be become invalid
and the file will be re-assessed as per standard practice and the following criteria
must be met:
(i) The repayment history of the facility must be regular.
(ii) lf the income assessment is unsupportive, the customer will not be entitled
to change the security mode.
(iii) lf the valuation of the property does not support the facility amount as per
standard practice, the customer will not be entitled to change the security
mode.
(iv) lf the legal vetting and title search report of the property is negative, the
customer will not be entitled to change the security mode.

Alternate Option for Point No. (ii) and (iii)

ln such cases, to allow the facility, the customer will have to partially settle the facility
amount to reduce the limit as per eligibility according to the income assessment and
valuation report.

interests to be eliminated to determine the customer's net deposit.

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MDB HOME LOAN PPG-VensroN 1.1- Apnt2015 bank rtl hclwiec yNth

29.0 PROCESSING FEES Purchase of ApartmenU House -

1% of loan amount + 15% Value Added Tax (VAT).

Home Renovation / Completion -

1% of loan amount + 15% Value Added Tax (VAT).

Takeover Loan -
No Processing Fee

NOTE:

fees will be charged on the renovation portion only.

3O.O FEES FOR LEGAL New Application

VETTING, VALUATION As per actual cost.
AND TITLE SEARCH
Re-Valuation
As per actual cost.

NOTE:
Re-valuation is mandatory under House building loans.

31.0 GURRENCY Bangladesh Taka (BDT) only

32.0 INTEREST RATE UNSECURED LOAN

14.00o/o (Floating) per annum with monthly rest. lnterest rate is subject to change by
ALCO based on market situation.

SECURED LOAN
3% spread against any interest rate of FD / MSS.

NOTE:

weighted average interest rate to be calculated and a 3% spread to be added to

determine the interest rate for financing.

33.0 PENAL INTEREST 2.00% higher rate will be applicable on overdue amount over the prescribed rate.
RATE
34.0 EARLY SETTLEMENT 2o/ofee of the OUTSTANDING AMOUNT
FEES

35.0 PARTIAL 2%lee of the PARTIAL PAYMENT AMOUNT

PREPAYMENTS
NOTE:

request, calculate new EMI and communicate with the customer accordingly.

36.0 FIRST REPAYMENT 30 days from the date of disbursement / first disbursement in case of partial drawdown.
DATE
EMI will be based on disbursement amount in case of partial disbursements.

No grace period / moratorium period will be allowed.

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MDB HOME LOAN PPG -Vensroru 1.1 -
Apnrr_2015 bukft ituI$irc row*
37.0 REPAYMENT METHOD Through Equal Monthly lnstallments (EMl) to be realized by:

Standing lnstructions (Sl) from MDB A/C

38.0 CONTACT POINT Branch will forward a detailed site visit report regarding the project to Head Office duly
vERrFtcATroN (cPV) signed by competent authority.

Verification will be done though bank's branch/ Third Party Verification Agency.

Salaried - Employment details.

Self-employed Professional - Professional details including professional practice
addresses along with the following:
/ Number of working days the doctor attends chamber or office,
/ Average number of patients attended per day,
r' Minimum fees charged per patient (both new and existing to be shown separately),
/ Photograph of the practice chamber.
Businessman - Business details.
Landlord - Rent verification with photos.

Apolicable for all seqments -

r' Telephone verification of residence and office / business.
r' Contact numbers (LAN / Mobile Phone) 1 (one) Land phone at office is mandatory.
r' Physical verification of residence and office / business addresses.
r' Physical verification of the property to be mortgaged. To be done thorough rhird party
Property Appraiser Company.
r' Legal aspects of each case will be thoroughly scrutinized by listed Law Firms / Legal
Advisors.

Waiver of Phvsical Verification of Customer Details

Customers who are already enjoying secured facilities (Home / Car Loan) having regular
repayment for more than one year.

Validitv of Verification Reoort

All the verification reports will be considered valid for 60 (sixty) days. Re-verification is
mandatory if application is not approved within the mentioned time.

39.0 CREDIT INFORMATION Up to date and clean CIB report to be obtained in the name of the customer from
BUREAU (clB) Bangladesh Bank.
REPORT
NOTE:
The CIB will be considered valid for maximum 60 days from the date of inquiry as the
CIB database in Bangladesh Bank is updated monthlv.
4O.O NATIONALITY Bangladeshi (resident) only

41.0 APPROVING Credit Committee / Managing Director / Executive Committee (EC)

AUTHORITY
42.0 VALIDITY / DEFERRED APPLICATION
AVAILABILITY PERIOD 45 (Forty Five) days from the date of last deferral (query) decision after which the
application will be considered cancelled.

43.0 APPROVING Following exceptions to the MDB Home Loan features and other credit criteria
AUTHORITY FOR CAR mentioned above in this document are permissible. To deal with the exceptions, an
LOAN OUTSIDE PPG authority-level based approach is followed whereby individuals in the credit chain at
CRITERIA different levels are grouped in three categories in three categories as follows:

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MDB HOME LOAN PPG-Vensroru 1.1- Apnt2015 bd$t fu in.h#iec glopth

Level l: Head ofCRM

Level 2: DMD
Leve! 3: Managing Director

List of permissible exceptions which may be approved by Level 1, Level 2 and Level 3
authorities are given below. Any exception outside the permissible exception grid will fall
under Level 3 requiring MD's exceptional approval with strong justification.

Criteria Level 1 Level 2 Level 3

(Head of CRM) IDMD'I (MD)
May be referred under
lnterest Rate No Authority No Authority strong justifi cation within
Al CO hand
Processing Fee Waiver of requirement
No Authority No Authority
on a case to case basis
Partial Prepayment
No Authority No Authority May be waived
Fee
Early Settlement Fee 50% waiver (1% of the Full waiver of
No Authority
outstanding loan amount) reouiremenl
Relaxation of requirement
Relaxation of
Eligibility of on a case to case basis.
requirement on a case
No Authority Must be reasonable
Guarantor by case basis. Must be
relaxation supported by
commcnls/ ,nalvcis reasonable relaxation.
Salaried Executives: Min 3
months at present
EmploymenU company
No Authority Up to but not less than 6
Business Length Professionals: Min 6
months for any applicant
months
Businessperson: Min 1
year
DBR Relaxation up to 5% in all Relaxation up to 10% in
No Authority
slabs all slabs
Relaxation of requirement
Relaxation of
ldentification and on a case by case basis.
No Authority
requirement on a case
lncome Documents Must be reasonable
relaxation supported by by case basis. Must be
reasonable relaxation.
comments/ analysis.

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