Riding on steady growth, National Credit and Commerce (NCC) Bank is expanding its home financing base through ensuring a high-quality loan portfolio with a focus on customer-oriented solutions and long-term viability.
The commercial lender treats house financing not merely as a loan product, but as a long-term partnership that helps customers achieve one of life's most significant milestones.
In an exclusive interview with The Financial Express recently, Managing Director of NCC Bank M. Shamsul Arefin shared the prospects of home loan and the bank's future planning to the special segment of the product.
He said Bangladesh's housing sector is steadily transforming, fueled by urban growth, a rising middle-income class, and a growing desire for homeownership. Even with structural hurdles -- such as high land prices, limited access to long-term funding, and shifting interest rate conditions -- demand for home loans continues to climb consistently.
Supportive measures from Bangladesh Bank, including recent provisions that allow eligible banks to offer home loans of up to Tk 40 million based on asset quality, have given fresh impetus to the sector. Although the market remains less developed by global benchmarks, it holds considerable untapped promise, he said.
"In this context, banks such as NCC Bank PLC are actively enhancing their home loan portfolios, with a focus on prudent expansion, customer-oriented solutions, and long-term viability," the seasoned banker said.
At NCC Bank, he said, their priority isn't dominating the market but rather ensuring a high-quality loan portfolio with sustainable expansion. The housing finance market remains significantly underpenetrated -- this isn't a story of stagnation, but one of gradual, long-term growth with considerable future potential.
About the key factors that are being largely considered before approving home loans, he said, lenders follow a systematic and prudent process, focusing on key criteria such as age limits, repayment capacity, income stability, credit history aligned with Bangladesh Bank guidelines, and accurate property valuation.
Equally critical are the Loan-to-Value (LTV) and Debt-to-Income (DTI) ratios, which help ensure responsible lending. Since home loans are long-term commitments, the evaluation must reflect a long-term perspective. At the core of every home loan approval lies a sound credit assessment, he said.
About the groups or professions that are currently taking home loans the most, the experienced banker said the primary drivers of demand are salaried professionals, government employees, and Non-Resident Bangladeshis (NRBs). Businessmen are also increasingly participating, particularly those with well-organized financial records.
Additionally, they said they are observing a growing trend of young professionals entering the housing market at an earlier age than in the past. As the saying goes, "Home ownership is no longer a late-life decision -- it is becoming an early financial goal."
In response to the installment performance of home loans, he NCC Bank's top executive said home loans remain one of the most stable segments within retail banking. Repayment discipline is generally strong, and non-performing loan (NPL) ratios stay comparatively low. Current economic conditions do appear to be putting some pressure on borrowers. Still, the secured nature of the product, combined with borrowers' emotional and financial commitment to their homes, helps preserve overall stability.
A customer may cut back on many expenses, but the home loan EMI is typically the last obligation they default on, he said.
Regarding the complete process from application to disbursement and repayment, he said the approach is both systematic and customer-centric. Submission of required documents like income proof, bank statements and property-related papers are required. After that, the bank needs to go through credit evaluation, including the CIB check as per Bangladesh Bank regulations, legal and technical verification of the property, loan approval and issuance of the sanction letter, documentation and creation of a mortgage, disbursement (either one-time or in phases) and monthly installment-based repayment.
If borrowers face difficulties, he said, banks prioritize restructuring support and active customer engagement before resorting to legal action.
"Our goal is to support the customer's journey -- not merely to provide financing," Mr Arefin said.
About the benefits and risks of home loans, the bank's top executive said for customers, home loans make property ownership possible without requiring the full upfront payment, though they come with long-term financial obligations and exposure to interest rate fluctuations.
In terms of banks, he said, this segment offers a relatively secure and stable asset base, yet it is not without risks -- such as legal complexities and market volatility.
"We are focused on growing our home loan business through a balanced strategy that prioritises both expansion and asset quality. Sustainable housing finance is not about aggressive expansion -- it's about disciplined growth," he said.
Looking ahead, he said, the future of housing finance in Bangladesh will depend on stronger policy support, improved affordability, and broader financial inclusion. As customer expectations change, banks must move beyond traditional lending and emphasize faster processing, greater transparency, and customized solutions.
"We view home finance not merely as a loan product, but as a long-term partnership that helps customers achieve one of life's most significant milestones. We aim to steadily strengthen this portfolio while maintaining prudent risk standards and delivering lasting value to our customers," he said.
For many people, according to him, a home is not just an asset -- it is a lifelong dream, and banks have a meaningful role to play in turning that dream into reality.
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