Bank Loan with interest rate determined for 2023 - healthforty

Bank Loan with interest rate determined for 2023 - healthforty

Bank Loan with interest rate determined for 2023 - healthforty

Many people want to take loans from banks for personal, family or business needs. What things must be taken into account to request a bank loan? Their details are highlighted in this report:

What factors do banks take into account to lend?

Former banker Nurul Amin tells BBC Bangla: "When making a loan, any bank considers whether it will recoup the money properly." If a customer can prove that the purpose for which he borrows is correct, that he can repay the loan amount with interest on time, then the bank agrees to grant him the loan.

Talking with the officials of public and private banks, it is known that there are some general conditions for granting loans. For example,

1. Borrower must be over 18 years of age, have regular income. Banks give loans to a person based on his ability to repay the loan.

2. The amount of money the loan applicant will get depends on his excess income or his ability to repay the loan.

3. Surplus income is the amount of money a person earns after paying income tax or other debt. However, it varies from bank to bank. But most banks assume up to 50 percent of this income as the ability to pay the loan installments. Based on that capacity, the bank allocates loans to you. As an example, a person's monthly income after paying income tax is Rs 50 lakhs.

4. The bank will calculate that it has the ability to repay the loan of Rs 25 lakhs. From there, maybe 5,000 taka per month as a loan fee.

5. Now the bank will allocate you that loan amount so your monthly installment amount including interest and principal will be within Rs 20 lakhs.

Apart from this, the payment information of previous loans of the person is taken into account, if there are other loans in other banks, other assets, type of work or business, etc.

For example, banks give special priority to professionals such as civil servants, doctors or engineers. Again, there are certain professions where the bank takes precautions when repaying the loan.

What kind of loans do banks give?

Banks give different types of loans under different names. Such as personal loans, travel loans, education loans, medical loans, marriage loans, car loans, house/apartment loans, etc. Apart from this, there are various types of business loans, loans for SMEs, agricultural loans, industrial loans, etc.

Banks broadly divide these loans into four categories. Such as secured loans, unsecured loans, SME or agricultural loans, and corporate loans.

Personal loans are unsecured loans, for which collateral is not required. But many banks accept guarantors. Cars, flats, etc. They are considered mortgages or secured loans. Apart from this, SMEs can be insured or uninsured. Agricultural or industrial loans are typical mortgage loans.

There are some specialized banks like Krishi Bank, Krishi Unyaan Bank, which provide loans only to professionals in a particular sector. For example, Pravasi Kalyan Bank, Industrial Bank and Employment Bank provide loans only for the purpose or class of people for which they are authorized.

How is the interest rate determined?

At present, the government has set the interest rate on deposits and loans at 6-9 percent. As a result, banks cannot charge interest above 9 percent. Rather, it often offers lower interest rates based on a borrower's credit history, occupation, or previous income.

A private bank said: Personal or individual loans usually have fixed rates. That is, whether the interest rate increases or decreases, the interest rate does not change. However, the interest rate to buy a car or a house is usually variable. If the interest rate goes up, it will go up, if the interest rate goes down, it will go down.

Under current rules, the interest rate on earmarked loans cannot change by more than 0.5 percent a year, bank officials said. However, in the case of corporate, industrial or large-scale loans, the interest rate is fixed on a negotiated basis. That too can vary from time to time according to the interest rate on deposits.

What is needed to get a loan?

The documents required for the loan differ from one bank to another. However, the client must have an account at the bank where the loan is requested.

In addition, as proof of income, at least six months' worth of payroll or business statement, salary certificate, TIN, bank statement, business license, employment certificate, national identity document, copy of address bill must be provided of the house, etc. Many banks require guarantees. At least two family members must be given as references.

If you want to buy a car or a flat, you must present the detailed documents of those properties. In addition, these properties must be purchased in the joint name of the bank and the client. Once the loan is paid off, the client will gain full ownership.

In the case of agriculture, commercial loans, industrial loans, land, buildings, factories, etc. they may have to be deposited in the bank as collateral. In that case, all property documents must be deposited in the bank.

If other loans are in progress, loan approval letters and transaction statements for the past year will be required. In the case of large residential projects, more than one person can apply for the loan at a time. In that case, these documents must be submitted for everyone.