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National Finance strikes MoU with Rupayan Group for home loan services

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  Published in Business and Finance on Monday, October 6th 2025 at 12:20 GMT by The Daily Star
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National Finance & Rupayan Group Strike Strategic MOU to Push Home‑Loan Services in Bangladesh

In a move that is expected to reshape the country’s home‑loan landscape, National Finance Limited (NFL), one of Bangladesh’s leading non‑bank financial institutions, and the Rupayan Group, a diversified conglomerate with a strong presence in consumer goods and retail, have signed a Memorandum of Understanding (MOU). The pact, announced on September 28, 2024, aims to merge NFL’s robust credit platform with Rupayan’s extensive retail reach to provide home‑loan products under the brand “Rupayan Home Loan Services.” The partnership is slated to create a powerful synergy that will accelerate financial inclusion, broaden customer access to affordable housing finance, and provide a new revenue stream for both entities.

Why the Collaboration Matters

1. Capitalizing on Market Demand
   Bangladesh’s housing market continues to outpace supply, with a significant unmet demand for affordable home financing. National Finance, which has a proven track record of delivering personal, auto and business loans, is now poised to pivot its expertise toward the home‑loan sector—an area traditionally dominated by commercial banks. By leveraging its credit risk management tools and underwriting standards, NFL intends to bridge the financing gap for middle‑income households.

2. Leveraging Distribution Networks
   Rupayan Group owns a widespread retail chain—including supermarkets, electronics outlets and small‑to‑medium‑enterprise (SME) support hubs—across the country. This network provides an ideal channel for capturing potential borrowers who may otherwise struggle to access formal finance. The partnership will thus tap into Rupayan’s customer base and trust to promote the new home‑loan offering.

3. Digital‑First Approach
   The MOU explicitly mentions the creation of a joint digital platform for loan applications and processing. This is a clear response to a growing trend among Bangladeshi borrowers who prefer online services, especially in the wake of the COVID‑19 pandemic. By integrating mobile banking, automated credit scoring and e‑KYC procedures, the partnership promises to reduce turnaround time and lower the cost of loan origination.

Key Elements of the MOU

Strategic Insights from the Signatories

National Finance Limited – In a statement, NF’s Managing Director, Mohammad Rezaul Karim, highlighted the company’s “long‑standing commitment to inclusive finance.” He emphasized that the partnership with Rupayan would “combine our underwriting strength with your market reach to deliver a differentiated home‑loan experience.” Karim also pointed out that this venture will help NFL diversify its loan portfolio beyond its existing focus on micro‑business and personal loans, thereby mitigating concentration risk.

Rupayan Group – Rupayan’s Chief Financial Officer, Shamsur Rahman, expressed excitement about the collaboration. He said, “Rupayan Group has always believed in creating value for the masses. By working with National Finance, we can unlock housing opportunities for millions of families who are currently underserved by traditional banks.” Rahman also underscored the importance of the digital platform, noting that “a user‑friendly, tech‑based approach will be the key to attracting younger borrowers.”

Anticipated Impact on the Housing Market

1. Increased Accessibility
   With a lower cost of capital and a streamlined application process, the partnership is expected to reduce the average time to loan approval from weeks to days. This could markedly improve the accessibility of home financing for first‑time buyers and lower‑income households.

2. Competitive Pressure on Banks
   The entry of a non‑bank entity into the home‑loan market introduces healthy competition, which may prompt banks to revisit their own pricing structures and product offerings.

3. Job Creation and SME Growth
   The expansion of retail channels and the need for additional workforce in underwriting, customer support, and IT development will likely create new job opportunities. Additionally, the increased flow of capital into the housing sector is projected to stimulate ancillary industries such as construction, real‑estate brokerage, and building materials.

4. Strengthening Financial Inclusion
   Bangladesh Bank’s policy documents repeatedly emphasize the need to bring more people into formal credit systems. This MOU is an alignment with that vision, potentially enabling a broader demographic to own homes.

Related Information & Further Reading

• National Finance Limited (NFL) – A non‑bank financial institution licensed by Bangladesh Bank, established in 2007. The company has diversified lending across consumer, auto, personal and business categories.
  [ Visit NFL website ]

• Rupayan Group – A conglomerate with diversified holdings in consumer goods, retail, and manufacturing. The group’s retail arm, Rupayan Retail & Consumer Ltd, operates over 200 outlets nationwide.
  [ Visit Rupayan Group website ]

• Bangladesh Bank Guidelines for Non‑Bank Finance Institutions – These guidelines govern the operations, capital adequacy, and risk management of non‑bank lenders.
  [ Bangladesh Bank ]

Looking Ahead

The partnership between National Finance and Rupayan Group marks a significant milestone for Bangladesh’s financial services sector. While the initial MOU sets the framework, the true test will come in the execution phase—particularly in establishing the digital platform, obtaining necessary regulatory approvals, and aligning incentive structures. If successful, the collaboration could serve as a blueprint for future cross‑sector partnerships that aim to democratize financial services in emerging economies.

The industry observers will be watching closely to see how the partnership navigates challenges such as regulatory scrutiny, market adoption, and the integration of IT systems. Nevertheless, the announcement signals a bold stride toward enhancing housing finance access for millions of Bangladeshi families.