Owning a home is one of life’s most important achievements for all human being. It provides the all important security, safety and comfort for one’s mind. A house, now a day, is not only for dwelling alone but also a source of earning for livelihood when it generates rental income. So it has a commercial use & value. In today’s costly environment, it may take lifetime to own/built a house by one’s own savings and it is particularly difficult for low & fixed income segment of the society.
On the other hand, demand for rental of small dwellings has increased manifold to accommodate the industrial workers and other low-income segment of the society. This is particularly visible in the areas near industrial hubs and also around cantonments.
A person having land at the above mentioned locations can easily increase his/her income level by making semi-pucca small dwelling houses for rental purpose. As a part of inclusive banking and also to facilitate the actual need of low-income segment of the populace TBL-IBD developed this product which will act as an income generating activity on the part of land-owner and increase availability of rental houses for the low-income segment of the society. This is a commercial house building investment product under Islamic banking mode.
- Target Customer: Bangladeshi Individual having free-hold land in his/her name beside City Corporation/Industrial/ Commercial/Cantonment area. It is recommended to have a trade license (proprietorship- other business) by the client (land owner) from appropriate authority to be eligible for commercial/SME investment facility.
- Purpose of the Investment: For Construction, extension, & finishing work of the pucca/semi-pucca Tin Shade (1 storied) dwelling House to let out for residential use to the peoples of low/small income segment. The aim is to generate earnings for the land owners as well as to increase the availability of residential facility to the small/low income people at low cost. This is a commercial investment facility.
- Location Eligibility:
- Within/around Industrial Area.
- Within City Corporation Area.
- Within Pouroshova Area.
- Within 1 km area from Cantonment excluding Chaptered land.
- Semi-urban area may also be considered if there exists labor-intensive industry
- (at least 3) within 1 Km. Exception: Managing Director may allow exception considering rental potentiality of the location.
- Investment Amount:
- Maximum amount of investment shall not exceed:
- 40% of the Distress Value of the land (verified by third party) &/or
- 80% of the Mouza Value &/or
- 80% of the total cost but not exceeding 40% of the Distress Value of the Land (verified by third party), &/or
- Expected rental income must cover 100% of EMI
- Maximum investment limit is Tk.25.00 lac against single account.
- Minimum- Tk.2.00 lac Up to Tk.5.00 lac – may be allowed as Collateral Free- only against deposition of Title deed.
- Equity Participation: Minimum 20% of total construction cost to be borne by the client (Land owner).