Terms & Conditions of Home Loan

1. The facility shall be made available for the customer from the date of Bank's approval of this application  until such time is stipulated in any letter and this facility shall be continuing on until the adjustment of  the dues of the Bank with interest and other charges.
2. The interest rate is variable. Interest rate can be changed in every 6 months i.e. maximum twice in a year. The interest rate on the loan may vary from the approved interest rate, shall be limited to a maximum of 1% per annum.
3. According to change in interest rate, the installment amount of loan will change.
4. The Bank reserves the right to withdraw the credit facility and demand repayment if there is any default in repayment of the loan.
5. The Bank shall not be obliged to make the credit facility available until it has received formal written acknowledgement from you accepting the credit facility on the basis of outline and subject to the terms and conditions specified in the Banking Arrangement (BA) letter.
6. The acceptance of the terms and conditions of the banking arrangement letter by the customer constitutes a legal and binding obligation and is enforceable in accordance with the terms of the Banking Arrangement letter.
7. By use of the credit facility provided by the bank, the customer accepts the conditions enumerated in the Banking Arrangement letter and authorizes the bank to appoint agents to collect funds payable to the bank, as the Bank may consider necessary. ln the due discharge of their duty, information regarding borrower's credit facility will be supplied to the agent. All charges payable to such agents, to collect amounts owed to the bank, are liable to be at borrower's cost and risk, in addition to all other costs, charges and expenses incurred by the bank to recover outstanding dues/money.
8. The bank is authorised to open and maintain account(s) for the purpose of administering and recording payments by the customer in respect of the facility.
9. The loan shall be utilized for the specified purpose for which it has been sanctioned. Payment shall be made directly by the bank to the vendor or to the customer, as determined by the Bank, depending upon the purpose of the loan.
10. All payments in respect of the facility shall be made by the customer on or before the due dates and the customer hereby irrevocably authorizes the Bank to debit any of the customer’s account(s) with the Bank with all amounts. Owing in respect of the facility including interest and charges and expenses (together the indebtedness) at such time as the same shall become or be due and, payable and transfer such sum to the loan account for adjustment but in any case the customer shall always remain liable and agree(s) to make payment in full of all such sums to the Bank.
11. The customer unconditionally undertakes to repay the loan as per terms and conditions of the Banking Arrangement Letter.
12. The customer undertakes to deposit his/her salary/wages/honorarium payable by his/her employer to the designated account maintained with the Bank.
13. The Bank is authorized to enforce all or any of the securities executed as well as kept by the customer in favour of the Bank and recover the loan amount with interest and other charges accrued in the loan account.
14. The customer irrevocably authorizes the Bank to enforce the securities act’s absolute discretion in the event the loan account becomes irregular and shall apply any proceeds recovered towards adjustment of outstanding loan liabilities along with all applicable at actual fees.
15. Where the facility is made available for purchase of consumer item(s) including Home Loan customer unconditionally and irrevocably undertakes to deliver possession of the consumer items including the Home Loan purchased by the loan amount without any question whatever to the bank as and when demanded by the bank. The customer further authorizes the bank irrevocably to sell the mortgage items and apply the proceeds towards adjustment of the dues. For any unadjusted sum, the customer undertakes to repay the same with interest and other charges.
16. In the event of normal death of the customer, the Bank shall be entitled to the End of Service Benefits from the Employer and to adjust the dues, first bet will be made to the heirs/nominees.
17. The Bank holds the right to refuse or approve a loan proposal without assigning/disclosing any reasons to the applicant.
18. After settlement of the facility, the borrower will collect all loan documentations from the domicile branch.
19. After refusal of loan proposal, it will be the responsibility of the applicant to collect proposed loan documentation from the concerned dealing person who processed the loan application within 7 (seven) days from the date of loan refused.
20. The Bank’s statements and records shall be binding on the customer and constitute conclusive evidence of debt for all purposes.
21. lf at any time, any provision hereof becomes illegal, invalid or unenforceable in any respect, neither the legality, validity or enforceability of the remaining provisions shall be affected or impaired.
22. The Bank reserves the right to alter these terms and conditions at any time on notification to the customer.
23. Any notice made by the Bank in respect of the facility shall be in writing and made to the address given by the Customer to the Bank and shall be deemed to have been received by the customer within 3 (three) business days from the date of posting.
24. lf the declaration below is signed by more than one person as customer, the liability of each such person there under and these terms and conditions shall be joint and similar.
25. These terms and conditions shall be constructed with the laws of Bangladesh and the customer and the Bank, hereby, irrevocably submits to the nonexclusive of the courts of Bangladesh.
26. Early Settlement Fee : 0.50% of loan outstanding plus applicable VAT. The Charge may change from time to time as per Bank or Government Policy.
27. Partial/Full Prepayment : Partial/Full Prepayment is allowed after 06 successful installments at any frequency within the loan tenure. Minimum prepayment amount is BDT 1.00 Lac. PrepaymentCharge will be 0.50% + VAT of pre-payment amount. You can request for reschedule the loaninstallment or change tenure. If reschedule is allowed by bank you shall have to pay necessary fees as per bank policy.
28. Penal Interest Rate: 1.5 % per annum above the existing rate of interest will be charged for any overdue amount from the overdue date until settlement. The charge may change from time to time as per Bank/Govt. Policy
29. EMI Repayment Date : Repayment date will be 08TH of every month. However you can Change the installment payment date change with a charge of BDT 2,000.00 plus applicable VAT.
30. The Bank reserves the right to make amendments of any terms and condition detailed in this sanction advice at its discretion.
31. This credit facility is granted under, and subject to, the conditions and limitations set out and specified by the Bangladesh Bank and other competent authorities from time to time and you will abide by the rules and regulations issued by the Bangladesh Bank and other competent authorities.
32. All reasonable expenses (including legal, professional etc.) incurred in the negotiation, preparation, execution and enforcement of this letter and the documents referred to herein shall be on your account (Borrower). The Bank is further authorized to debit all sorts of fees provided that these fees are consistent with the Bank’s schedule of fees/charges.
33. All stamp and similar taxes (govt. levies, excise duty etc.) to which this letter or the documents referred to herein are to be paid by you.
34. Yearly Excise Duty and applicable VAT (as recommended by the Government) will be deducted from your account maintained with the Bank. Signature of Main Applicant Page 3/4 Signature of Co-Applicant
35. EVENT OF DEFAULT: The following may be treated as Event of Defaults by the Bank:
    1. Change in Material Circumstances: Any material adverse circumstances arise which in the opinion of the bank gives rise to a belief or suspicion that you (Borrower) may not (or may be unable to) perform its obligations hereunder.
    2. In case of failure of to repay 03 (three) consecutive installment.
    3. Non-Payment: If you do not pay in the manner provided in this sanction letter any sum payable under it when falls due.
    4. Breach of Other Obligations: If you do not perform or comply with any one or more of its obligations under this sanction letter or other security documents with the Bank.
36. The Bank preserves right and discretion to set-off and have general lien against the balance amount of money deposited in any account maintained by you or Guarantor(s) and/or any money retained in any funds(s) from participated by you or Guarantor(s) with the Bank and payable by the Bank.
37. Any repayment of the loan whether in part or full facilities will be attributable in the following order: a. Interest b. Principal
38. The facilities may be withdrawn by the bank at its absolute discretion without assigning any reason at any time by giving 15 days prior written notice to you in that event all the outstanding shall be immediately repaid. In the event that you have any outstanding at the date of dispatch of such notice, no further withdrawals will be permitted. Unless otherwise specified, you are required to pay all the amounts outstanding hereunder or pursuant hereto in respect of the above-mentioned credit line(s) within 15 days of demands made by the Bank.
39. In the event of any dispute between you and the Bank, shall be resolved amicably. In the event of failure to resolve it shall be referred to the competent court(s) in Bangladesh. The dispute shall be governed by and construed in accordance with the laws of People’s Republic of Bangladesh.
40. If any provision of these conditions is found to be void or enforceable such provision shall be deemed to have been deleted from these conditions without prejudice to the other remaining provisions or spirit of the loan sanction and the remaining provisions shall continue in force. Notwithstanding the foregoing, the bank and you will hereupon seek in good faith to agree to a substitute provision which is not void or unenforceable but gives effect ( so far as may be possible) to the parties intentions.
41. In Consideration of the Bank Granting the above facilities, you undertake not to decrease or otherwise change the values of the status of the security that you have been given in favor of the bank.
42. Unless otherwise agreed with the bank in writing, you will duly insure security from the fire, earthquake, flood and cyclone (If applicable) with an insurance company acceptable to the bank not less than the loan amount and noted the Bank’s interest in the insurance policy.
43. Unless otherwise agreed in writing, the bank has general lien and right to set off any outstanding loan or receivables/entitlements of the Bank on one account against any other account held in your name whether singly or jointly with any person at the bank whether in debit or credit.