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For instance, we have included semi-pacca house building products to spread such investment in the rural areas of the country. Our home finance facilities under HPSM cater to a wide range of customers while encouraging responsible home ownership and asset-backed investment. We also emphasise financing for women entrepreneurs and small business owners through our SME and Retail Investment Schemes.

TDS: What are the key challenges developers or buyers face in accessing finance, and how are you addressing them?

MUA: Developers primarily face hurdles related to documentation and compliance, often delaying project approvals, along with equity and collateral constraints. Project risk and cash flow mismatches further complicate financing continuity. Additionally, a limited understanding of Islamic financing modes sometimes creates reluctance.

For buyers, the main obstacles include high property prices and an affordability gap. Lengthy approval processes are being streamlined through simplified procedures. As per the rules of the regulatory body client could not demand more than Tk. 2.00 crore in this sector. Besides client’s participation should be a minimum of 30% of the purchase price. But in areas like Gulshan, Banani, and Baridhara, the price of a flat is much higher. In those areas, demand for house finance is also higher, but for regulatory reasons, we cannot provide house finance of more than 2.00 crore. Vague agreement between the land owner and the developer regarding flat distribution. The bank advises performing a complementary deed or a correction deed to remove such vague distribution.

TDS: Are there any innovative partnerships or digital solutions (apps, paperless processing, AI risk tools) that have made housing finance easier?

MUA: Our clients can impose a standing instruction to deduct their instalment from their savings and current accounts. They can also pay the instalment from anywhere through our 141 branches around the country. They can observe their investment account statement through our instantly updated app by sitting their home. Besides, the client may pay their instalment by using our digital app Shajalal Touch Pay. We are in under process of introducing paperless processing of housing finance.

TDS: What is your outlook on the housing market in 2025-2026, and how is your bank positioning itself to support that growth?

MUA: Expected house building growth in Bangladesh for 2025-2026 is mixed, with the broader construction sector predicted to slow due to political and economic factors. However real estate market is still projected to grow, driven by urbanisation, population growth and demand for modern and sustainable housing. As a secured investment, our bank will also emphasise increasing its market share of house building through reducing the rent rate, by signing MOUs with different prominent developers and by marketing.