Loans can be availed by mortgaging movable property: (Surokkhito Lenden (Osthabor Sompotti) Bill, 2023

Jatiya Sangsad has approved the proposal to make a new law which allows the borrowers to take loans from banks and financial institutions by mortgaging movable property like gold, silver, cars, and furniture.

On behalf of the Finance Minister, Law Minister Anisul Haque moved the 'Secured Transactions (Movable Property) Bill 2023' ( Surokkhito Lenden (Osthabor Sompotti) Bill, 2023 ‘ in the Parliament last Thursday (October 26).

Until now, only immovable property like land or house could be mortgaged. If the new law comes into force, loans can be taken by mortgaging movable property. According to the proposed bill following properties will be considered as collateral/ mortgaged property:

a. Certificate of Fixed Deposit issued in a bank or financial institution

b. Gold, silver and other precious metals whose weight and purity standards are certified by recognized authorities

c. Share certificate of registered company

d. Intellectual property products recognized by intellectual property rights

e. Furniture, electronics products

f. Software or apps whose value can be estimated

g. Mechanical or non-mechanical vehicles registered with the appropriate authority

h. Agricultural produce stored in proper process

i. Processed fish or aquaculture

j. Wildlife, livestock

k. Any lease for a term of more than one year regulated by law

l. Any motor vehicle registered under the Road Transport Act.

This year on May 18, the cabinet gave final approval to the draft of this law. Cabinet Secretary Mahbub Hossain said that day, this law is being made to give legal basis to movable property. However, the movable properties must be registered. Small traders, ICT traders, who have apps, intellectual property can go to the registration and take loans by assessing market rates.