Eastern Bank Ltd.

EBL HOME CREDIT

PRODUCT PROGRAM GUIDE

1. DEFINITION
EBL Home Credit is a terminating loan facility (EMI based) for credit worthy individuals for meeting the purpose of
Renovation / Extension / Construction / Purchasing of new property. Bank would finance against monthly income of
any credit worthy individual to meet accommodation needs.

2. PRODUCT FEATURES

EBL Home Credit is considered for the following purposes:

• House/flat/apartment renovation
• Extension of House
• House construction
• House up-gradation
• Face uplifting
Purpose • Finishing work etc.
• Purchase of new property.
• Any Legitimate purpose.
Note: Registration of the property along with the City Jorip mutation is a required before
financing.
Housing finance for real estate business and commercial complex such as super market and
shopping mall etc. will be excluded.
Product Currency Bangladeshi Taka (BDT) only
Loan Amount Minimum TK. 500,000/-.
(minimum and Maximum TK. 12,000,000/-
maximum) • Maximum times of loan amount to be considered as per DBR Grid
• 15.00% p.a.(Floating) for external customers (Ref: Re-pricing Home Loan interest rate
dated December 27, 2011)
• 12.00% p.a. (floating) for EBL Employees
Interest Rate
However for cash covered Home loan interest rate will be guided by fast loan/cash Policy

(Interest rates will be determined by ALCO from time to time based on Marketsituation)
• 1% of loan amount
• 0% for EBL Permanent Employees
• 0% for take-over loans
(It may change from time to time as per schedule of charges)
Note:
Processing Fee
Customer will have to deposit BDT 15K in his/her CASA account after getting the in-principle
approval but before sending for property valuation and legal vetting which will be done by 3rd
party enlisted valuation co. & law firm. Customer has to open CASA account in this regard in
case he/she doesn’t have any account with EBL. Out of BDT 15 K at actual amount will be
deducted as valuation & legal vetting charges. At actual valuation and legal vetting costs will

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not be refunded if the application is declined.

LTV will be calculated based on the property value of the Existing Mortgage property. But
under no circumstances loan amount should exceed force sale value at current status in case
of disbursement is one phase.

LTV : 70% (LTV will be guided by BB Guidelines & Circulars)

LTV For 100% cash covered, as per Fast loan PPG or 70% property value, whichever is lower.

Note: For new apartment/ property purchase LTV will be determined based on the completion
value of the existing property. For construction/ renovation/ up-gradation etc. LTV will be
determined based on current status of construction including land value.

300 months
Notes:
- No fraction of year is allowed.
Max Tenor - For 100% cash back maximum allowable loan tenor will be acceptable. (As per FAST
LOAN/FAST CASH Tenor must not be fixed more than maturity date like as EBL Just double, EBL
confidence). However, another row should be included for only 100% cash back proposal

Repayment • System will auto debit installment from customer’s CASA account.
Allowed after payment of 6 installments. At least minimum 30% of the loan outstanding to be
paid by customer while making advance / prepayments.
Advance / Partial
• Fee: 2% of the partial payment amount. (Partial Payment Fee may change from time to
Pre Payment
time as per schedule of charges)
• 0.5% will be applicable for EBL Employees.
• Early full and final settlement is allowed
• A charge for early full and final settlement is flat 2% of the outstanding loan amount. (Early
Early Payment fee
Payment Fee may change from time to time as per schedule of charges)
• 1% early settlement fee is required for EBL Employees.
Installment failure • Penal interest of 3% p.a. on the overdue amount. (Penal Interest Rates will be determined
charge by ALCO from time to time based on Marketsituation)
• All relevant Stamp charges will be on borrower’s account and will be debited from the
Stamp charges
account at the time of disbursement.
• CIB Charges for both EBL and BB portion and all CPV charges will be deducted from
CIB and CPV customer’s account at the time of disbursement (as per schedule of Charges)
Charges • No CPV charge is applicable for EBL Employees
• CIB charges only for BB portion for EBL Employees
VAT • Applicable as per Government Rules
• Renovation: WIP / Completed.
Minimum • Extension: Completed except the extendable portion.
construction work • Construction: At least Slab / Roof casting of Ground floor must be completed.
stage for financing • Purchase of new property: Construction stage of the new property is ignorable.
In case of takeover and Cash covered loans, construction stage is ignorable
Loans will be provided in freehold and leasehold areas developed by the REHAB
Member/Government approved projects/competent authority/Prime Locations on priority
basis.
Types of property
Lease hold land (lease term should not be less than 25 years from the expiry of the finance
tenor)
Age of the property 20 years old (maximum) at the time of underwriting Existing Mortgage property. Age of the

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property should not be more than 40 years at the end of the loan tenure subject to the
building may be constructed on RCC column.
A list of Non target area (i.e, Areas under cantonment board etc.) will be maintained with the
Non-target Area for
help of the lawyer / law firm and /or enlisted surveyor. However upon satisfactory legal & title
Financing HML
report from bank approved legal counsel financing may be considered.
1) Renovation, Construction & Extension: Loan will be credited to customer’s account.
2) Purchase of new property: PO to be issued in favor of the seller.
3)Phase by Phase disbursement:
For Construction:
Based on work completion loan amount will be disbursed. Four (04) phase disbursement is
preferable in case of staggered disbursement.
But under no circumstances loan amount should exceed force sale value at current status.
5) 100% cash covered loans: Either issue pay order in favor of Seller/ Developer or customer
Mode of a/c credit as per customer choice.
disbursement Notes:
• For purchase of new property, however if customer already paid full agreement value to
the respective seller/developer, customer account may be credited subject to obtainment
of builders NOC and money receipt of the payment within 3 months of loan application.
• In case of Take Over loan with renovation/extension or construction (if any) only take over
amount will be paid through pay order favoring the institution from where loan is being
taken over; rest loan amount will be disbursed after completion of mortgage related
formalities. However, in case of takeover loan, mutation of the property in favor of the
applicant must be completed.
Subject to obtainment of satisfactory valuation report & legal opinion only take over loan
portion will be disbursed subject to obtaining confirmation from concerned Bank/FI regarding
release of security documents and redemption and revocation of the property after clearance
Disbursement of pay-order proceed. The rest amount (if any in case of take over plus renovation/up
procedure in case of gradation) will be disbursed subject to completion of mortgage related formalities.
“Take Over loan”
Pay-order of Outstanding balance to be issued in favor of the respective bank/FI. EBL official
(RM) along with a forwarding letter will hand over the pay order to the respective department
of the bank/FI. Appropriate tracker would be maintained in this regard.
• Minimum 06 months of relationship.
Prerequisite for • 30 DPD maximum once in last 12 months (None in last 06 months)
takeover loan. • No overdue at the time of assessment.

Prerequisite for 2nd loan/top up

• Minimum 12 months of relationship.
Aggregation (top • No 60+ DPD in last 12 months
up/additional loans) • 30 DPD maximum once in last 12 months (None in last 06 months)
• No overdue at the time of assessment
(However, top up should be for additional construction/renovation justifying the needs)
Eligibility:
Conversion of The existing Home loan customers who will meet the below criteria will be eligible to avail
existing Home Loan conversion facilities:
Customers • Customers must have at least 06 months loan relationship with EBL
• No 60+ DPD in last 12 months
• 30 DPD maximum once in last 12 months (None in last 06 months)

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• No overdue at the time of assessment

Waiver:
• Waiver of LOI/Salary Certificate/Pay Slip for the customer who remains with the
existing Employer and/or seeks same loan amount. If employer is changed and/or
higher loan amount is sought, LOI/ Salary Certificate /Pay Slip will be required which
has to be verified as per CPV policy.
• Waiver of bank statement verification through CPV team for the customer who
remains with the existing Employer and/or seeks same loan amount. However,
permanent staff of any EBL branch will verify/ confirm the authenticity of the bank
statement. On the other hand, if Employer is changed and/or higher loan amount is
sought, bank statement has to be verified as per CPV policy. On urgent situation, bank
statement may be verified by any EBL Branch Manager.
• Loan processing fee will be applicable only for the additional amount.
• No early settlement fee for existing Home loan
• Registered mortgage along with Irrevocable General Power of Attorney (IGPA) of the
Security Mode
property in favor of EBL
Moratorium Period Not allowed
• Two references required
References
• For EBL Employee no reference is required
• Property to be insured prior to disbursement.
• Fire and earthquake damage risks will be covered. This will be mandatory.
• Flood & Cyclone coverage will be required for flood & cyclone prone zones.
Property Insurance • All properties mortgaged are to be insured against property value or 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.
• Insurance is not mandatory in case of 100% cash covered loan.
A Bank appointed surveyor would value the proposed financing property.
The Valuation report, amongst other things should contain followinginformation:
• Completion date
• Status of construction.
• Present Market rate and on completion market rate
• Forced Sale value at current construction status
• Forced Sales value after completion
• Date of site visit
Property Valuation • Photographs of the property inspected.
• Breakdown of land &structure value etc.
• Reports on RAJUK plan on the following issues:
• Genuineness of the approved RAJUK/CDA/RDA/KDA etc plan.
• Comment on approved RAJUK/CDA/RDA/KDA etc plan (approved up to which floor,
per floor area, no. of units per floor etc).
• Width of the access road of the building.
• Deviation between approved plan & actual construction.
For Purchasing of new property, valuation of the existing property will be considered.
 Plinth level: up to10%
Property Deviation  Floor level : up to 25%
Note: Deviation will not be applicable for 100% cash covered loan.
Documents for Documents to be furnished as per lawyer requirement based on which satisfactory legal & title
verification of Title report to be attained from Bank approved lawyers.
& Legal clearance

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• Home crediteligibility in respect of income assessment & property status.

Approval Steps
• Legal Assessment & Valuation
Waiver of :
 Income assessment
 Work / Business experience
 Share of ownership
 Length of A/C relationship
 Property Age
 Developer’s Category
 Builder’s letter & Money receipt for home loan
 Latest tax clearance certificate. However, TIN to be taken.

100% cash covered Flexibilities:

loan options: • Property may be located in anywhere with EBL branch representation
• Finance to be extended at any construction stage of the property
• Purpose may vary: Home Purchase / House Renovation / Extension / Face Uplifting
• Legal clearanceis not mandatory prior to loan disbursement
• No undated cheque required
• Co-applicant / co-borrower is not mandatory
• Insurance is not required
Conditions:
No tax certificate to be issued unless client creates Registered Sale Deed with
EquitableMortgage or Registered Mortgage on his/her property favoring the bank.
Securities & LTV: Fast Cash/Fast Loan PPG policies will be followed.

3. BORROWER ELIGIBILITY

Any credit worthy individuals like :

• Salaried executives
• Doctors, Architects, Engineers, Chartered Accountant and Certified Consultant & IT
Target Customers Professionals
• Businessperson
• Landlords

Nationality Bangladeshi
Min (at the time of application) : 25 Years
Max (at the end of loan tenor):
- Salaried Segment: 65 years or retirement age whichever is earlier
- Businessman/Professional Segment : 65Years
Age
Notes:
i. Co- applicant, whose income is not being considered is 18 years
ii. Minimum age of applicant may be allowed up to 22 years, if the Home is 100% backed by
EBL FD/WEDB issued by EBL
• Salaried Executives: Minimum 2 years of experience (including probation period) with 6
months employment with present employer. Applicant must have to be confirmed
Employment/ permanent employee at the time of application.
Business/ practice • Professionals: Minimum 3 years of practice in the profession as per BMDC/ Professional
Certification
• Businessman: Minimum 3 years of involvement in business as per Trade License
Eligibility of • At least three (3) years of experience with at least 6 months in current organization

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Contractual required for contractual employees (work experience related necessary documents to be
employees provided)
• Min Gross Monthly Salary: BDT 50K
• Contract must have validity at the time of disbursement
• 3rd party contractual employees are not allowed
• Contractual employees of reputed MNCs, UN bodies, donor agencies etc. are highly
encouraged
Minimum BDT 30,000/- Gross Monthly Salary/Income
(If joint applicant income is considered, total aggregate Gross income must be more than BDT
40,000/- per month
Gross Monthly Salary/Income = Monthly salary + 80% of other income only from rent
received from House or shop must be located within EBL branch command area and such
claimed income should be substantiated, however rental income from Semi-Pacca/Tin shed
Income for salaried building will not be considered.
Executives Note: Annual/half yearly or variable income like bonus, LFA (if not monthly), commission,
TA/DA, phone bill etc. will not be considered in Gross monthly salary/ income components
which are not paid in monthly basis will not be considered.
Note:
>If cash voucher is provided as evidence of cash portion salary, it may be considered upon
verification of vouchers.
• Self employment: BDT 40,000/- Per Month
• Businessman : Minimum BDT 50,000/- Per Month
Income for
Total Monthly Income: Monthly Income+80% of other income only from rent received from
Businessman,
House or shop must be located within EBL branch command area; however rental income from
Professionals/Self-
Semi-Pacca/ Tin shed building will not be considered.
employed /
Landlord Note: In case of rental income where there is no bank reflection for those cases extensive CPV
will be done. Based on the report of the rental CPV, 80% of the rental income will be
considered.
Value based DBR will be considered as follows based on Gross Monthly Income:
Income 30,000-49,999 : DBR 40%
Income 50,000-69,999 : DBR 45%
Debt Burden Ratio Income 70,000-99,999 : DBR 55%
(DBR) Income 100,000 + : DBR 60%
Notes :
* 3% of the Credit Card / Unsecured OD limit will go into DBR calculation.
* Monthly installments will not be considered in DBR for cash back secured loans, DPS, Ins.
Premium etc.
Owner(s) of the property preferably be the main borrower, if the property owner & the main
financially eligible person happen to be different.
Primary borrower
Co-applicant is mandatory for all proposals except for the cases where the primary applicant
criteria &
happens to be both (the property owner as well as the financially eligible person) and agrees
requirement of Co -
to assign his/her Life Insurance Policy (LIP) in favor of the bank to mitigate the death risk/100
applicant
% cash covered.
Note: LIP amount should cover at least the loan amount.
Co-applicant – Same eligibility criteria and income verification will apply for co- applicant in
Co - Applicant case his/her income is considered to derive loan eligibility; and shall be part of the immediate
Eligibility family via Spouse, father, mother, son and brother only

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Relationship and number of co-applicants may vary depending on the title ownership of the
property to be mortgaged or other genuine issues.
Note: For proposals, where co-applicant is someone other than spouse while the incumbent is
married, a declaration from spouse has to be attained.
Location of clients Main borrower must reside within the Branch command area.
and mortgaged Location of the co-applicant (s) may be anywhere of Bangladesh.
property Property must be located within the metropolitan areas where EBL has branches.
General:
• Passport or National Identity. If passport or NID is not available, Driving license or photo
based commissioner certificate supported by birth certificate / SSC certificateto confirm
DOB or other photo ID acceptable to Central Bank
• Any Utility Bill copy as confirmation of owned house
• Recent Pass port size color Photograph
• Loan KYC duly signed by the recommending authority
• Office ID/ Business card
• Latest (not more than 2 years old) copy of tax clearance certificate/ Tax Return
acknowledgement slip, from main income holder & property owner. Co applicant’s TIN is
required when s/he is property owner. If co applicant income is not considered in
aggregate income, then submission of TIN is not required.
• Latest Bank Statement for last 12 months but not more than one month old from the date
of application.
• Having existing loan facility, sanction letters along with 12 months B/S reflecting loan
installment will be required to examine the repayment behavior and exception grid.
• Rent or Lease Agreement of house / property along with ownership documents (if
applicable)
• Salary Certificate/ Letter of Introduction (In case of salaried executives)as per EBL
Identification & prescribed format or it covers the major information of LOI to be signed by HR/ Authorized
Income Documents person (as mentioned in SC/ LOI Policy)
• SC / LOI must be provided in original Letter Head (no photo copy will be allowed)
• SC / LOI must not be more than one month old at the time of application
• Offer letter or Release letter/ any other valid documents from previous employer to prove
3 yrs service experience (if applicant’s employment period in present service is less than 3
yrs)
• BMDC/ Professional Certificate for Doctors/Professionals. For highly renowned specialized
doctors (FCPS and above Degree holders), requirement of BMDC Certificate may be waived
based on business unit’s recommendation.
Businessmen Segment (additional):
• Audited/Management certified Latest Profit & Loss account and balance sheet of the
business for businessmen, (if any)
• Copy of Trade License (Latest and inception)
• Latest schedule–X, Form 117 in case latest schedule X is not available to substantiate share
transfer
• Registered partnership deed from RJSC for partnership concern
Landlord (additional):
• Title deed of rented premises/property
• Valid rental deed with tenants particular & approved plan for that building from
competent authority,
Apartment/House • Ownership deed of the property (photocopy).
Construction, • Bia-deed for last 25 years.
Renovation, • Registered Power of Attorney.

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Extension– on • Recent Land Survey (Dhaka City Survey/BS Khatian) Report.

private land (as • Duplicate Carbon Receipt along with Mutation Khatian& mutation proposal sheet in the
applicable) name of present owner.
• CS. SA. RS Khatian(RS.PS. BS. Khatian applicable for Chittagong).
• Up to date “Non Encumbrance Certificate” for last 12 years.
• Up to date Land Development Tax Receipt (LDTR) in the name of present owner.
• Up to date City Corporation/MunicipalityHolding tax receipt - where applicable. (if the land
is vacant,declaration from the landowner/developer will be required).
• Approved plan/Layout plan and approval letter from RAJUK/CDA/RDA/KDA/Pourashava/
Other Competent Authority.
• Such other documents as required by the Banks appointed Lawyer.
• Lease Deed in the name of first lessee & Title deed in the name of present owner.
• Bia-deed for 25 years.
• Mutation Order from the concern authority (RAJUK, NHA, Ministry of Housing & Public
Apartment/House, Works, Cantonment Board & other competent authority).
Construction, • Duplicate Carbon Receipt (DCR) along with Mutation proposal sheet in the name of
Renovation, present owner.
Extension – on • Up to date “No Encumbrance Certificate” for 12 years
government/leaseh • Up to date Land Development Tax Receipt (LDTR) in the name of present owner.
old land(as • Up to date City Corporation/MunicipalityHolding tax receipt - where applicable. (if the land
applicable) is vacant, declaration from the landowner/developer will be required).
• Approved plan/Layout plan and approval letter from RAJUK/CDA/RDA/KDA/Pourashava/
Other Competent Authority.
• Such other documents as required by the Banks appointed Lawyer.
Ensuring following documents are in place in addition to other standard doc:
• Accepted Sanction Letter.
• UDC as per UDC policy.
• Property Insurance Policy along with original money receipt.
• Disbursement advice.
• Satisfactory legal and title report from bank appointed lawyer
• IGPA/ Registered Mortgage Deed with General Power of Attorney
Other Important • Loan agreement
documents for • Memorandum of deposit of title deeds
disbursement • DP Note
• Letter of declaration or indemnity
• Letter of continuation
• Letter of undertaking
• Letter of set-off
• Irrevocable letter of authority
• Facility offer letter
• Board of resolution for finance of directors of limited companies where the credit
assessment has been done based on limited company statement.

Note: EBL Home Loan (Secured) general criteria will be as per Fast Loan / Fast Cash PPG

EBL Home Credit Product Program Guide – Launch January_2017