Housing Finance Markets and Concept about Housing Finance Marketing:
The housing finance markets in Bangladesh consists of specialized housing finance institutions, banks, non-banking financial institutions, insurance companies, micro finance institutions and stock market. The sector comprises of 3 specialized housing finance institutions (BHBFC, DBH, NHFIL), 4 State-Owned Commercial Banks (SCBs), 4 State-Owned Specialized Banks (SBs), 39 Private Commercial Banks (PCBs), 9 Foreign Banks (FCBs), 31 Non-Banking Financial Institutions (NBFIs), 62 insurance companies, 599 micro finance institutions (Bangladesh Bank, 2014). The state-owned Bangladesh House Building Finance Corporation (BHBFC) is burdened with bad loans, and loan disbursement has tended to be low in recent years. Delta-BRAC Housing came into this market as private-NGO collaboration, but its interest rate is as high as 16 per cent which is higher than even that of BHBFC by one per cent. The major financing organizations for housing are BHBFC and the Commercial Banks. Financing by other organizations like Delta- BRAC, National Housing and Microcredit lenders are insignificant. The government owned specialized housing finance company; Bangladesh House Building Finance Corporation (BHBFC) are reputed to be not very market savvy compared to existing private sector players, is now plagued with high defaults of over 30% and no additional funding from the government (Karnad R. S., 2004). Private sector players like Delta-Brac Housing Finance Corporation (DBH), National Housing Finance and Investment Limited (NHFC), Industrial Development Leasing Company (IDLC) and private sector commercial banks are fast gaining ground on fresh disbursals.
