StanChart launches innovative home finance product in Bangladesh

Staff Correspondent | Published: 00:05, Aug 15,2018 | Updated: 20:31, Aug 15,2018

 
 

Standard Chartered Bangladesh chief executive officer Naser Ezaz Bijoy, retail banking head Aditya Mandloi and corporate affairs, brand & marketing head Bitopi Das Chowdhury are seen at a press conference on launching of MortgageOne, an innovative home financing solution, at a hotel in Dhaka on Tuesday. — New Age photo

Standard Chartered Bangladesh on Tuesday launched MortgageOne, an innovative home financing solution, with a view to catering the evolving needs of its retail clients.
Standard Chartered made the announcement at a press conference held at a city hotel on Tuesday where SCB’s chief executive officer Naser Ezaz Bijoy and head of retail banking Aditya Mandloi, among others, were present.
They said MortgageOne is a unique product proposition that will change the way home loans are financed.
For existing home loans offered in the market, clients pay interest on the full loan outstanding amount, while the clients, under the MortgageOne, will pay interest only on the difference between the loan balance and the funds held in the customer’s current account linked to MortgageOne, they said.
The balance maintained in the current account can offset a maximum 25 per cent of the loan amount, they said.
MortgageOne allows clients to pay off their loan much faster than a regular mortgage and at a lower effective interest rate, while the linked current account allows the clients to meet their transactional needs, at any point in time, the SCB officials said.
Naser Ezaz Bijoy said, ‘Innovative products such as Mortgage one will be a game changer in Mortgage loan product in Bangladesh and it will help us to serve our clients better by keeping pace with the change.’
Aditya Mandloi said the MortgageOne will deliver a customised solution for SCB’s clients.
He said it will cater to the home financing needs and savings appetite of our clients, going beyond the one-size-fits-all approach.
MortgageOne offers lower net effective interest rate and flexibility in managing funds, he added.
MortgageOne’s loan interest rate would be variable as the rate would be linked to the average rate of 182-day Government Treasury Bill.
The facility interest will be reviewed in every 6-month from the date of disbursement based on the movement of the average rate of 182-day Government Treasury Bill.
A customer would get highest Tk 1.20 crore finance facility under the MortgageOne product, while the bank would provide highest 70 per cent in case of financing for apartment purchase.
The maximum tenure of the loan would be 25 years. 

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