Sherpa Hossainy's Blog

FAS to disburse $660m car, housing loans

Posted in Bangladesh, Business, Corporate, Dhaka, Finance by Sherpa Hossainy on November 3, 2011

Published in The Independent on 30 October 2011

Read the article on Independent website

Digital print version

FAS Finance and Investment, a leading financier in Bangladesh, is going to provide financing worth $660 million (Tk 5,000 crore) in housing and car loans by 2013, a top official of the company said.

“We are expecting to disburse Tk 700 crore by March 2012, Tk 2,500 crore by December 2012 and Tk 5,000 crore by December 2013,” said Abdul Matlub Ahmad, chairman of Fidelity Assets and Securities (FAS) Finance and Investment Ltd.

In a bid to introduce the financing concept, FAS, a sister concern of Nitol-Niloy Group, has arranged a year-long fair termed “Gari-Bari Mela” at Hotel Abakash in Dhaka. The fare will be held every Saturday.

Ahmad said that presently customers suffer from non-delivery of housing units and abnormal time to complete housing projects by various builders. “This fair will help buyers to get immediate possession of flats and cars without hassle by supporting them with instant sanction of loan advice,” he said.

“Customers would be able to purchase low cost homes, office spaces or shops, which have already been built or would be built in a year or more, by availing loans from FAS,” Ahmad said.

Moniruzzaman Akan, assistant vice president of FAS, said this [the fair] is a one stop service to cover two prime needs of middle-class customers.

“If buyers pay 30 per cent of the price of a flat or a car on the spot, they will get the rest 70 per cent as loan from FAS. Upon payment of the loan, the customer will get the ownership of the flat or the car,” Akan said.

Ahmad expressed satisfaction over the proceeding of the fair, and said that more than four units of houses and six units of vehicles were sanctioned on Saturday, the opening day of the fair.

“Numerous offers from proposed buyers had been received which will soon mature into positive sales. We are very happy with the tremendous response from public,” he said.

Twelve companies — nine realtors, one insurance company and two vehicle dealers — are participating in the fair. The companies include Concord Group, Rupayan Group, Mega Builders and Tropical Homes. FAS will also provide financial support to the builders in installing generators, LP gas and solar panels in their apartments to ensure timely hand-over of the flats, Ahmad said.

“Some banks namely State Bank of India, Pubali Bank Ltd and Mutual Trust Bank, already gave their go-ahead to finance this project and I hope more banks will be interested,” the FAS chairman said.

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