Return to Home

Prime Finance
Housing Deposit Scheme 

 

What is housing deposit scheme?

Housing deposit scheme (HDS) is designed to assist people with limited income to purchase their own dwelling place through a guaranteed financing facility of Prime Finance. After maintaining your deposit with Prime Finance for a certain period of time you may avail our home loan facility for purchase of your dream house. A corporate house may also maintain such deposit for its eligible employees either for purchase of land and construction of residential apartments thereon for their dwelling purpose or for purchase of apartments.

How does the scheme work?

Under this scheme the depositors will save their earnings on monthly basis for a stipulated time and only at the end of maturity Prime Finance will offer the depositors an affordable long term home loan upto maximum 3 times of the value of their accumulated savings upon fulfillment of certain conditions.

What are the main features of this scheme?

  • An attractive rate of income on deposit
  • Flexibility in monthly installment size
  • A guaranteed loan facility at the end of maturity
  • A very competitive rate of interest on home loan
  • Simple and quick disposal of loan proposals.

Why should you have housing deposit scheme?

To own a dwelling place of his/her own is a dream of every person. But very few can afford to buy or built house with their own income and this makes them to approach financial institutions for financing support. But it is not always assured that everyone having applied for loan will get the facility. Moreover, those getting loan have to spend considerable time for completion of formalities.

Furthermore, most of the earning persons save a part of their earnings under DPS. In many cases when such DPS matures funds are not properly utilized.

Keeping these in mind Prime Finance Housing Deposit Scheme is aimed at encouraging people to save their earnings with certain objectives in mind and at the same time enable them to obtain loan within shortest possible time, at a competitive rate as well as under easy terms and conditions.

Who is eligible to deposit under this scheme?

  • Any Bangladeshi national having consistent flow of earnings;
  • Any corporate entity for their eligible employees;
  • A deposit account may be opened by an adult on behalf of a minor.

The scheme can be described in two parts 

  1. Deposit for a stipulated term
  2. Housing loan facility upon maturity of the deposit



MAJOR FEATURES OF THE DEPOSIT

  1. Period: Depending on the income level, a depositor can save on monthly basis for the periods from 5 to 15 years.

  2. Installment size & loan amount: The monthly installment size, maturity value and the probable loan amount are illustrated below:

    Periods
    (Years)

    Installment
    p.m.(Taka)

    Maturity value
    (Taka)

    Loan amount
    (Taka)

    5

    25,000

    2,062,159

    6,186,477

    7

    15,000

    1,979,685

    5,939,055

    10

    10,000

    2,323,391

    6,970,172

    12

    8,000

    2,578,017

    7,734,052

    15

    5,000

    2,522,880

    7,568,640

    The depositors have the option to deposit even in multiple of Tk. 5,000 p.m.

  3. Mode of deposit: The deposit can be made either by account payee cheque or by cash within the banking hours.

  4. Timing of deposit: The deposit must be made on any working day by the 10 th day of each month. If the depositor fails to deposit any installment, he/she will pay the installment with the next month's installment with an additional charge of 5% of the overdue installment.

  5. Default: If the depositor fails to deposit 3 consecutive installments the account will automatically be closed and the depositor will be given interest at the rate of 10% p.a.

  6. Pre-mature encashment: Encashment before maturity is not allowed. Only in case of unavoidable circumstances, withdrawal may be allowed and in that case the following rules will be applicable :

    a) Under no circumstances deposit can be encashed before expiry of 12 months and

    b) Interest @ 10% p.a. will be payable.

  7. Tax : Income from the deposit is subject to deduction of tax at source as per Income Tax Ordinance.

  8. Loan facility: Loan facility will be available only upon maturity of the deposit period.

  9. Advance installment: If a depositor intends to deposit one or more installment(s) in advance, it is acceptable but in that case interest will be given only on the installment due.

  10. Multiple accounts: More than one account may be maintained in the same name.

 

MAJOR FEATURES OF THE HOUSING LOAN

  1. Loan at maturity: The depositor can avail the home loan only upon the maturity of the deposit.

  2. Location of the house/flat: The Land/house/flat intended to be purchased must be located in the six city corporations (Dhaka, Chittagong, Rajshahi, Khulna, Barishal and Sylhet) and Tongi, Gazipur, Savar and Narayangonj Municipality/Paura Area.

  3. Loan application: Application for the loan must be made in the prescribed format at least 30 days before the date of maturity of the deposit.

  4. Loan amount: Generally the loan will be maximum 3 times of total accumulated value of the amount deposited subject to fulfillment of certain conditions. Management may, however, enhance or reduce the limit depending on the requirement.

  5. Approval: The loan is subject to fulfilment of certain conditions as approved by the appropriate authority.

  6. Interest on loan: Interest will be charged on the outstanding loan amount at a competitive rate.

  7. Term: The maximum period of loan shall not exceed 15 years.

  8. Repayment of loan: The loan shall be repaid in equal monthly installment, including interest. If the loan is withdrawn in trenches, the interest will be charged separately on each trance.

  9. Mode of repayments: All repayments shall be made through account payee cheques.

  10. Transferability of the loan: The loan can be transferred to the legal heir, who has the capacity to pay off the loan.

 

- End -