Contact No:


How to take Mortgage Loan in Bangladesh

How to take Mortgage loan in Bangladesh | Everything you need to know in 2023

11 Jan 2023

Barrister Tahmidur Rahman Best Lawyer In Bangladesh

Tahmidur Rahman, Director and Senior Associate

Here in this post Barrister Tahmidur Rahman will explain in details about the basics of mortgage loan procedures in Bangladesh– How to take Mortgage loans in Bangladesh in 2023 as a company or as an individual for capital raising. Here in this post, in simple steps we explain the Procedure & Guidelines for the required approval of mortgage loans by Bangladeshi Companies and individuals.

Table of Contents

Find the subsections below, If you want to jump through specific sections instead of reading the whole article.

Foreign Loans

Mortgage in Bangladesh

A mortgage is a transfer of an interest in real estate or immovable property. One person lends his or her property to another in exchange for money for a set period of time.

The loan can be taken out on tangible immovable property. In the event of a repayment default, the person holding the mortgaged property may sell or use the property to make up for his loss.

The transaction conditions are determined by the parties; for example, when one person lends money to another, he may do so without requiring any security or may require some security for the payment of money.

The person who lent the money may then sue for repayment if there was no security taken. And, if security is taken, that security may be used to recoup the lost money.

Hence, the definitions:

Mortgagor: In a property mortgage transaction, the mortgagor is the person who borrows money instead of putting a mortgage on the property as security for the debt.

Mortgagee: The person lending money in a mortgage transaction is known as the mortgagee. A bank or other financial institution.


How To Take Foreign Loans In Bangladesh 2023%20 Overseas Financing For Bangladeshi Companies The Most Complete Guideline For Foreign Loans Best Banking Law Firm In Bangladesh

Analysis of Mortgage Loan in Bangladesh


Amongst clients, the concepts of mortgage and pledge are frequently confused; however, there is a significant difference between the two. When a loan is pledged, it is secured against movable property, whereas a mortgage is secured against immovable property.

Mortgage transactions can be traced back to the early days when there was no mortgage law and people were still carrying out this type of transaction. With or without specific laws, this practice is universally accepted.

Prior to 1882, there was no specific law governing mortgage property transactions. Following the passage of the Transfer of Property Act, the rights and liabilities, laws governing mortgage, mortgagee, and mortgagor underwent a thorough and much-needed revision, and detailed regulations were enacted.

Prior to the 1882 Act, though the act did not apply to previous transactions, a mortgagor’s right to redemption existed to recoup the mortgage money.

Mortgage Loan related laws in Bangladesh

As per the Bangladesh Bank Orders of 1972, banks now serve as the primary providers of mortgage facilities. Additionally, non-banking financial institutions established in accordance with the Financial Institutions Act of 1993 have begun to participate in this market.

The majority of mortgaged properties are immovable, such as land, homes, apartments, businesses, etc. Of course, the concept is that if the borrower is unable to repay the loan with interest, the mortgagee will have the option of seizing the property or selling it at auction to recuperate their investment.

The parties’ contractual agreement will also have an impact on this. Despite this, the Transfer of Property Act continues to be the primary mortgage law in Bangladesh (1882).

This law establishes the definition of a mortgage, the roles of the mortgagor and mortgagee, and the rules that apply to this transaction. Sections 58(a) to (f) of the act define the various types of mortgages, including simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, and mortgage by deposit of title-deeds.

Although the basic concept is the same, these transactions happen in a different order in terms of the transfer of ownership of the desired property.

In Bangladesh, the practical approach to mortgage is slightly different. When applying for a mortgage in countries such as the United States, the credit score is taken into account.

Bangladesh handles it in a more traditional manner. All of the documents are submitted to the banks, and the banks obtain clearance from the Bangladesh Bank on pending loans, which is known as a Credit Information Report or CIB, which details any loans the person has or any loan payment defaults the person has made.

Another factor considered is whether the property to be mortgaged has previously been mortgaged for other loans that have yet to be paid off.


    How To Take Foreign Loans In Bangladesh 2023 _ Overseas Financing For Bangladeshi Companies_ The Most Complete Guideline For Foreign Loans_ Best Corporate Law Firm In Dhaka

    Mortgage Loan Procedure and Requirements in Bangladesh

    There are certain requirements that must be met by the mortgagor in order to secure the loans. For the mortgagor, this is usually where professional legal assistance comes in handy.

    There are some technical issues that must be addressed in order to prepare the mortgagor for the types of loans that can be obtained from banks or NBFIs.

    Firstly, It all starts with the valuation report, which lawyers can help the mortgagor prepare. This, in particular, provides the mortgagor with an understanding of the property’s value and the type of loan that can be approved.


    How To Take Foreign Loans In Bangladesh 2023 | Overseas Financing For Bangladeshi Companies| The Most Complete Guideline For Foreign Loans_Best Company Law Firm In Dhaka

    “Tahmidur Rahman Remura Wahid is Considered as one of the leading firms in Company Law in Dhaka, Bangladesh”

    Bdlawfirms & Carpe Noctem Bangladesh

    Second, it is critical to comprehend and fully understand the title deeds and other property-related documents. It is no secret that in Bangladesh, the land registry is a difficult battleground when it comes to locating the proper documents and determining land ownership. For any property, the previous 25 years of ownership are usually taken into account.

    Third, when there is an agreement between the mortgagor and mortgagee, as well as the Power of Attorney, with which the power or interest in the property is transferred to the Mortgagee, these must be vetted extremely carefully because it is critical to understand that each party is not vesting anything more than they have agreed through the mortgage.

    Finally, registration is required because anything related to property must be registered in the Sub-registrar office in order to be valid. Notarization is also required in this case. All of these are situations in which a legal professional can help the mortgagor.

    To summarize, it is critical to understand the value of any property as well as the entire mortgage process, as any mistakes or misunderstandings can result in long-term legal consequences and even property loss. The mortgage law is fairly straightforward, but the complexity lies in the practical approach to mortgage security.

    Mortgage Loan In Bangladesh

    Types of Mortgages in Bangladesh

    Simple Mortgage

    A simple mortgage is when a mortgagor agrees to pay the mortgage money according to the loan documents or gives the mortgagee the right to sell the property and apply the proceeds to the mortgagor’s loan. The mortgagee does not have possession of the property in a simple mortgage.

    Conditional Sale Mortgage

    A conditional sale mortgage is one in which the mortgagor sells the mortgaged property to the mortgagee with a condition, with the sale becoming absolute in the event of a payment default. If the mortgage is not paid, the property becomes void according to the terms.

    Mortgage on Usufructuary Property

    The usufructuary mortgage occurs when a mortgagor gives the mortgagee possession of a property and authorizes the mortgagee to keep possession of the property until the debt is paid. Typically, rent or profits from the property while in the mortgagee’s possession are applied in whole or in part to the debt.

    English Mortgage

    An English mortgage is when a mortgagor agrees to repay the loan on a specific date and transfer the property completely to the mortgagee, with the provision that the mortgagee will re-transfer the property to the mortgagor upon payment of the agreed-upon loan amount.

    How to get a Trade License in Bangladesh?

    Click here and go to the post, Tahmidur Rahman speaks in details about Trade License in Bangladesh | Fees, Processing and Renewal!

    How To Take Foreign Loans In Bangladesh 2023 | Overseas Financing For Bangladeshi Companies| The Most Complete Guideline For Foreign Loans_Best Transactioanl Law Firm In Bangladesh.

    General Questions that people ask about Foreign Loans in Bangladesh



    What are the best banks for Mortgage loans in Bangladesh?

    It is very hard to pin down specifically the best banks for Mortgage loans in Bangladesh. Some of the mentionable ones are:
    Bengal Commercial Bank
    Midland Bank.
    LankaBangla Finance.
    Standard Chartered Bank.
    Delta BRAC Housing Finance Corporation Limited.

    What sort of Mortgages are applicable in Bangladesh?

    Sections 58 (a-f) of the act define the various types of mortgages, which include simple mortgages, mortgages by conditional sale, usufructuary mortgages, English mortgages, and mortgages by deposit of title-deeds.

    Who is the owner of a Mortgaged property in Bangladesh?

    The person who mortgages his property to secure the loan is referred to as the "mortgagor/borrower." The individual or institution to whom the property is mortgaged is referred to as the "Mortgagee/Lender."

    How many types of mortgages are there in Bangladesh?

    In Bangladesh, there are six different mortgage types, which are: simple mortgage, usufructuary mortgage, English mortgage, mortgage by conditional sale, mortgage by title deed deposit, and anomalous mortgages.

    Is giving Mortgage means a transfer of ownership?

    Mortgage has a very broad scope, ranging from giving parties rights to creating formalities for creating mortgages (section 59), as well as redemption clauses and their variants. Mortgage transactions are distinct from pledge, lease, and charge transactions. To determine whether a transaction is a mortgage or not, a test must be performed to determine whether the purpose of the transaction is enjoyment of property by the transferee or repayment of debt by the transferor. As a result, in the case of a mortgage, the latter part is the intention of the party. In mortgage transactions, there is no transfer of ownership; rather, there is a transfer of possession for a set period of time.

    Is Mortgage loan safe in Bangladesh?

    A mortgage loan is generally a secured way of availing loan in Bangladesh. This means you put up a property as collateral for a loan. This property serves as collateral for the lender until the loan is fully repaid. Monthly EMIs are used to repay the loan.

    What is the difference between loan and Mortgage in Bangladesh?

    A loan is a sum of money borrowed from a financial institution to meet specific objectives or requirements. It can be secured or collateral-free. A mortgage is an immovable property used as collateral to obtain a loan.

    Why is it called a Mortgage in Bangladesh?

    The term derives from the Old French morgage, which means "dead pledge," and is derived from mort (dead) and gage (pledge) (pledge). It is so named because the deal dies when the debt is paid or when payment fails, according to the online etymology dictionary.

    How To Form A Private Limited Company In Bangladesh_Best Corporate Law Firm In Bangladesh
    Video Tutorial

    Author’s Bio

    Tahmidur Rahman | Law Firm in Dhaka, Bangladesh

    Tahmidur Rahman is a trained Engineer and one of Bangladesh's most innovative young Barristers. He is regarded as one of the country's sharpest young legal experts.

    He is academically qualified Legal Professional (BA LLB) and CS Engineer (BSc CSE- concurrently pursued four different majors at two different universities) with experience structuring and negotiating complex business transactions such as company formations, registrations, mergers, acquisitions, leveraged buyouts, syndicated loans, and acquisition financings.

    For the past several years, I've been counseling corporations, investors, and banks on a wide range of capital markets products and financial restructurings, particularly in cross-border settings in rising South Asian markets. I like assisting clients in resolving complicated financial structure difficulties, dealing with difficult market conditions, and navigating Bangladeshi legislation, regulation, and disclosure requirements.

    As one of the the leading law firms in Bangladesh, Tahmidur Rahman Remura Wahid chamber aligns its way to consistently exceed the legal expectations from its revered local and International clients. Voted as the best Banking law firm in Bangladesh by ACQ, best Commercial law firm in Bangladesh by FT and best Company law firm in Bangladesh, in 2023 by several world class publications and databases, TRW law firm in Bangladesh is also considered as one of the best multi-disciplinary full service law firm in Dhaka, Bangladesh.

    The law chamber functions as a group of many leading practicing lawyers who work together to represent TRW's clients and have so far achieved an outstanding overall success rate in both litigation and commercial matters. The Lawyers and Barristers are working as partners, associates and paralegals of Tahmidur Rahman|TRW- Law Firm in Dhaka, Bangladesh.

    They are highly trained and exceptionally qualified with both local and international credentials and skills. The current Managing Partner, Barrister Abul Hashem has the experience of practicing in the Supreme court of Bangladesh for more than 15 years and was educated in England and was also called to the Bar of England & Wales as Barrister of the Honourable Lincoln's Inn Society. Partners and partners have extensive experience and skills in their respective fields of practice, ranging from Admiralty, Writ Matters, Business, Criminal and Private Law, Finance Law, Information Technology Law, Investment Law, Intellectual Property law, Divorce & Family Practice.

    The head office of the law firm is situated in the Gulshan 1 circle of Dhaka, which is considered to be the financial center of Bangladesh. The firm is strategically situated close to Gulshan 2 & Banani Commercial Areas and is easily accessible from Uttara, Dhanmondi, Bashundhara Residential Area and Badda. The firm works in compliance with strict ethical principles and maintains international standards in the handling of its business.

    Tahmidur also gained broad experiences in antitrust, consumer protection, and general litigation matters, with particular experience in FTC investigations, private antitrust litigation and class actions. Within short span of formation, Tahmidur also served several national and multinational corporations which includes Team Group Plc, Seecen International Ltd., Diplomate Resorts Plc, Cloudcone Technology PTE Ltd., Benaul the Piper etc.

    TRW as a firm also defends corporations in a wide variety of industries, including pharmaceutical and technology companies. Despite this exponential growth and proliferation of clients, the managing partner still constantly maintaining the firm’s grounded approach and making sure the members of ‘Tahmidur Rahman Remura’ maintain a contiguous and helping hand towards its clients of all norms.


    Address: Jamilla Villa (4th Floor Flat No-C2 House 4/A/1 Road no: 2, Gulshan 1, Dhaka, 1212, Gulshan, Dhaka, 1212, Bangladesh

    Gender: Male

    Job Title: Senior Associate and Director

    Commercial Law practice in TR Barristers in Bangladesh 

    The Barristers, Advocates, and lawyers at Remura Wahid Law chamber in Gulshan, Dhaka, Bangladesh are highly experienced at assisting clients in dealing with all sorts of Bank loans in Bangladesh.   For queries or legal assistance related to any type of commercial legal assistance, please reach the relevant law firm at:

    Phone: +8801847220062 or +8801779127165
    Jamilla Villa (4th Floor Flat No-C2 House 4/A/1 Road no: 2, Gulshan 1, Dhaka, 1212


    How To Take Foreign Loans In Bangladesh 2023 _ Overseas Financing For Bangladeshi Companies_ The Most Complete Guideline For Foreign Loans_Best Company Law Firm In Bangladesh

    Want new articles before they get published?
    Subscribe to our Awesome Newsletter.

    How to get BGMEA Membership in Bangladesh

    BGMEA Membership in Bangladesh The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) stands as a cornerstone of the country's textile and garment industry, representing the interests of manufacturers and exporters. Membership in BGMEA is highly sought...

    Directorate of Textile Registration Permit in Banlgadesh

    Directorate of Textile Registration Permit in 2024 In Bangladesh, the textile industry stands as a cornerstone of the nation's economy, contributing significantly to its GDP and providing employment opportunities to millions. With the sector's rapid growth and...

    Partnership Deed Registration in Bangladesh in 2023

    Partnership Deed Registration in Bangladesh A partnership is a commercial arrangement in which two or more partners form an entity to do business. For Partnership Deed Registration in Bangladesh, you have to keep in mind a partnership must always have at least two...

    দেওয়ানী কার্যবিধির আদেশ সমূহ

    বাংলাদেশে দেওয়ানী কার্যবিধির পদ্ধতি সেই প্রক্রিয়াকে শাসন করে যার মাধ্যমে দেশের আইনি ব্যবস্থার মধ্যে দেওয়ানী মামলার শুনানি এবং সমাধান করা হয়। এটি নাগরিক বিরোধের সূচনা, অগ্রগতি এবং সমাধানের জন্য একটি কাঠামো প্রদান করে, ন্যায়বিচারের ন্যায্য এবং দক্ষ প্রশাসন নিশ্চিত...

    Registering a trademark in Bangladesh

    Registering a trademark in Bangladesh is an essential stage in the intellectual property protection process in today's globalized world, when brands themselves carry enormous value. In Bangladesh, an economy that is expanding at a rapid pace, the process of...

    Top Divorce Lawyers Dhaka

    We understand how you feel when time is against you. The most difficult choice to end a life demands a lot of strength and determination to overcome obstacles. Something can cause more harm than good. During a divorce, you need a qualified and skilled lawyer who...

    চেক ডিজঅনার মামলার নতুন নিয়ম ২০২8

    চেক ডিজঅনার মামলার নতুন নিয়ম হস্তান্তরযোগ্য দলিল আইন, ১৮৮১ এর চেক ডিজঅনার মামলা নিয়ে জটিল বিষয়গুলো ছোট ছোট আলোচনার মাধ্যমে আমরা এই আর্টিকেল টিতে ক্লিয়ার করার চেষ্টা করব। আদালতে চেক ডিজঅনারের মামলা সবচেয়ে বেশি পরিমাণে হয়ে থাকে। তাই এই সম্পর্কে আমাদের সবার কমবেশি...

    Cheque Dishounor and Legal Remedies in Bangladesh in 2024

    Cheque Dishounor and Legal Remedies in Bangladesh in 2024 and how to deal with it Cheque dishonor is a recognized crime in Bangladesh. Checks are increasingly being employed as a means of financial transaction between businesses and people. As a result, cheque...

    Issue Management for IPO in Bangladesh

    Issue Management for IPO in Bangladesh: How to start a Public Issue A Lead Manager at a commercial or investment bank is in charge of organizing a specific credit or bond issuance. This bank will recruit additional lending institutions or underwriters to form the...

    Ad valorem court fee in Bangladesh

    Ad valorem court fee in Bangladesh: A Comprehensive Overview Ad valorem court fee in Bangladesh in Bangladesh and the legal system in Bangladesh is an essential component of maintaining justice and resolving disputes. As part of the legal process, court fees play a...
    Contract Under Bangladeshi Law

    Contract Under Bangladeshi Law

    The 6 Essential Elements of a Contract Under Bangladeshi Law As in many other jurisdictions, a Contract Under Bangladeshi Law is considered legally enforceable when it incorporates six essential elements: Offer, Acceptance, Awareness (also known as Consensus Ad Idem...

    Other posts you might like

    Contract Under Bangladeshi Law

    Contract Under Bangladeshi Law

    The 6 Essential Elements of a Contract Under Bangladeshi Law As in many other jurisdictions, a Contract Under Bangladeshi Law is considered legally enforceable when it incorporates six essential elements: Offer, Acceptance, Awareness (also known as Consensus Ad Idem...

    Call us!

    × WhatsApp!
    /* home and contact page javasccript *//* articles page javasccript */