SME Banking Scope In Bangladesh (Part-7)

SME Banking Considering the volume, role and contribution of the SMEs, AB Bank has been patronizing this sector by extending credit facility of different types and tenor. As of now 54% of the banks total loan portfolio is segmented to the SMEs which deserves all out attention in plans, projection and forecasting. As such the bank has emphasized on the following issues:

To provide the best services to the SME sector. To increase the SME portfolio of ABBL significantly To improve the quality of ABBLS portfolio.

SME Sector in which AB Bank has participated so far:

Agro machinery Poultry Animal Feed Dairy Product Fruit Preservation Hotel & Restaurants Garments Accessories Leather Products Plastic Product Furniture : Wooden & Metal Ink Paint Printing & Packaging Wire & Cable Aluminum Cement & Lime Plaster Clinics and Hospitals Engineering & Scientific Instruments.

ABBL offers the following SME loan products: I. Uddog loan. II. Goti loan. III. Aparajita loan. IV. Proshar loan. V. Choto puji loan. VI. Digun loan. Large Loan & Project Finance

In order to cater the demand of client of AB Bank has segmented its loan size. As per this segmentation any loan over TK 10.00 core falls under the preview of large loan unit. In AB Bank, there is also a separate Project Finance unit who evaluate the business. The unit is entrusted to handle the portfolio in a focused manner. AB Bank is always in front to support establishment of new projects of diverse nature which will help to broaden the manufacturing arena to generate to employment. At the moment AB has participation in 19 syndicated facilities. AB Banks exposure in the ongoing syndication is TK51560.29 lac which is diversified in the following ten sectors.

Company Profile BRAC Bank is a fully operational Commercial Bank. Since inception in July 2001, the Banks footprint has grown to 56 branches, 30 SME Service Centers, 427 SME unit offices and 112 ATM sites across the country services are :

SME ( Small and Medium Enterprises ) Banking Retail Banking Corporate Banking NRB Banking

Corporate Vision Building profitable and socially responsible financial institution focused on Market and Business with Growth potential, thereby assisting BRAC and stakeholders to build a just, enlightened, healthy democratic and poverty free Bangladesh. Corporate Mission Sustained growth in Small & Medium Enterprise sector Continuous low-cost deposit Growth with controlled growth in retail assets. Corporate Assets to be funded through self-liability mobilization. Growth in Assets through syndications and investment in faster growing sectors. Continuous endeavor to increase non-funded income Keep our debt charges at 2% to maintain a steady profitable growth Achieve efficient synergies between the banks branches, SME unit offices and BRAC field offices for delivery of remittance and Banks other products and services Manage various lines of business in a full controlled environment with no compromise on service quality Keep a divers, far flung team fully controlled environment with no compromise on service quality Keep a diverse, far flung team fully motivated and driven towards materializing the banks vision into reality. Core Values

Our Strength emanates from our owner BRAC. This means, we will hold the following values and will be guided by BRAC as we do our work. Value the fact that one is a member of the BRAC family Creating an honest, open and enabling environment Have a strong customer focus and build relationships based on integrity, superior service and mutual benefit Strive for profit & sound growth Work as team to serve the best interest of our owners Relentless in pursuit of business innovation and improvement Value and respect people and make decisions based on merit Base recognition and reward on performance Responsible, trustworthy and law-abiding in all that we do. SME Banking BRAC Bank, being the youngest bank, took a step to break away from usual tradition and tapped into the true suburb entrepreneurial initiatives. Today, with over 14,500 crorers of loans disbursed till date, BRAC Bank is countrys largest SME financier that has made more than 320,000 dreams come true! If you have a dream on which you trust, let us make it true together. Loan Products

Anonno Rin Apurbo Rin Prothoma Rin Durjoy Shomriddhi Rin Shompod Rin Shokti Rin

Deposit Product

Prapti Current Account Prachurjo Fixed Account

ANONNO SME LOAN

What is ANONNO SME Loan? ANONNO is a business loan to meet any kind of business needs, which starts from BDT 3 Lac to10 Lac.

No security required Overdraft facility Easy installment Easy loan processing. Eligibility Any kind of business having valid trade license, which has been operating at least 2 or more years. Sole proprietorship, Partnership or Private Limited company Small & mid-sized businesses (Production, Trading, Service, Agro based products and others)
APURBO SME LOAN

What is APURBO SME Loan? APURBO is a loan facility for Small & Medium Entrepreneurs. To meet any kinds of business needs, APURBO is offering BDT 1 million to BDT 5 million loans against registered mortgages. Specialty of this loan Term loan and overdraft based on your business needs. Limited documents 10 to 50 Lac Loan Easy installment and overdraft facility Eligibility Any kind of business having valid trade license, which has been operating at least 3 or more years. Those who have property/land/building
PROTHOMA SME LOAN

What is PROTHOMA SME Loan? Prothoma is a term loan for small scaled business operated by women entrepreneur, Maximum BDT 1 million is offered to meet business needs. No security required As low as 10% interest rate Tenure from 1 to 4 years

Easy loan processing Eligibility Any kind of business having valid trade license, which is at least 2 years of old. Sole proprietorship, Partnership or Private Limited Company Small & mid-sized business (Production, Trading, Service and others)
DURJOY SME LOAN

What is DURJOY SME Loan? To meet your business needs DURJOY is offering BDT 3 Lac to BDT 2.5 million Loan without any security. Specialty of this loan Up to BDT 25 Lac loan in the name of business Easy installment up to 5 years Convenient interest rat Overdraft facility Eligibility Any kind of business having valid trade license, which has been operating for at least 3 years. Sole proprietorship, Partnership or Private Limited Company 1 year bank statement
SHOMRIDDHI SME LOAN

What is SHOMRIDDHI SME Loan? To meet import-export related expenses, post import expenses, tax/duty payment, local bill purchase and working capital, SHOMRIDDHI loan is offering BDT 1 Lac to BDT 10 million. LC and LATR facility Revolving loan, overdraft Local bill discounting facility Letter of Credit (LC)/Loan against trust receipt (LATR) LC opening facility: from BDT 1 Lac to BDT 10 million

Up to 90% loan against LC Revolving Loan Import duty payment or goods purchase facility Loan up to BDT 10 million Local Bill Purchase Loan up to BDT 10 million in export Specialty of this loan Easy loan processing Convenient interest rate Loan payment facility up to 180 days. Eligibility Any kinds of businesses having valid trade license and which has been operating for at least 3 years. Sole proprietorship, Partnership or Private Limited Company.
SHOMPOD SME LOAN

What is SHOMPOD SME Loan? SHOMPOD is a loan facility starting from BDT1 million to BDT 35 million against home or business premise mortgage. Specialty of this loan With overdraft facility which will help you to meet your working capital need. Loan against home or business premise mortgage to meet business needs. Loan is also available to purchase business premise Up to BDT 35 million loan facility Installment facility up to 10 years Convenient interest rate Eligibility Small & mid-sized of business having valid trade license, which has been operating for at least 3 years in Dhaka & Chittagong.

SHOKTI SME LOAN

What is SHOKTI SME Loan? Business loan under which you can avail BDT 1 million to BDT 7 million to meet your any kind of business needs. Loan against partial security or fixed deposit At least 1 year bank statement
PRACHURJO SME LOAN

Prachurjo is a lucrative fixed deposit for small and medium businesses. With a minimum 1,00,000 TK, any business enterprise having valid trade license can open this account. Specialties Tenure: Minimum 3 months and maximum 36 months No fees except govt excise / duty on interest earned, Interest is applicable on maturity No pre-encashment fees Who are eligible for this deposit? Everyone involving in sole proprietorship, partnership and private limited companies Small and medium typed businesses (Educational institution, NGO and Co-operative society and others) Accounting Talks

Till date, BRAC Bank has served 3,20,000 entrepreneurs, with SME loans valued at BDT 144,330 million through its 424 SME Unit Offices. A concerted effort from the largest business division of the country has ensured balance sheet growth alongside economy. BDT 37,400 million asset disbursement was supplemented by BDT 8,970 million deposits. Fit-for-purpose strategies and strong drives towards both asset and liability made these successes possible. The year came to an end with a net positive growth in both asset and liability. 10% asset growth has been made by our own liability. SME banking division has strengthened its foothold in Bangladesh more than ever before. As the core business of BRAC Bank Limited, SME Banking refined its widespread network by bringing all the unit offices under the Banks server network, thereby enabling faster communication with the Head Office. The Medium Business unit was launched with a dedicated team for mid-tier customer.

Historical Background Dutch-Bangla Bank Limited is a scheduled commercial bank. The Bank was established under the Bank Companies Act 1991 and incorporated as a public limited company under the Companies Act 1994 inBangladesh with the primary objective to carry on all kinds of banking business in Bangladesh. The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange

Limited. DBBL- a Bangladesh European private joint venture scheduled commercial bank commenced formal operation from June 3, 1996. The head office of the Bank is located at Senakalyan Bhaban (4th floor), 195, Motijheel C/A, Dhaka, Bangladesh. The Bank commenced its banking business with one branch on 4 July 1996. Dutch Bangla Bank Limited (DBBL) a public company limited by shares, incorporated in Bangladesh in the year 1995 under companies Act 1994. With 30% equity holding, the Netherlands Development Finance company (FMO) of the Netherlands is the international cosponsor of the Bank. Out of the rest 70%, 60% equity has been provided by prominent local entrepreneurs and industrialists & the rest 10% shares is the public issue. During the initial operating year (1996-1997) the bank received skill augmentation technical assistance from ABN Amro Bank of the Netherlands. DBBLs focus is to provide one counter service to clients covering: Commercial Banking (Deposit Accounts), Consumer Banking (Retail Baking) Traveler Cheques- Foreign & Inland Remittances, Financial Services, Corporate Banking, Asset & liability management, Liquidity & capital Resources Management, Information technology, Human Resources. DBBL Internet banking enables customer to access his/her personal or business accounts anytime anywhere from home, office or when traveling. Internet Banking gives customer the freedom to choose his/her own banking hours. It can save time, money and effort. Its fast, easy, secure and best of all. DBBL, since its inception was active in various social activities, which increased manifold over the period of time and its growth. It is one of the fast growing leading online banks in private sector. The emergence of Dutch-Bangla Bank Ltd. in the private sector is an important event in the banking area of Bangladesh. The Netherlands Development Finance Company (FMO) of the Netherlands is the international sponsor of the Bank. The FMO is the Dutch development bank of the Netherlands specialized in the financing of private enterprises in Asia, Africa, Latin America and Eastern Europe. Dutch-Bangla Bank Ltd. came into existence with joint venture as a public limited company incorporated in Bangladesh on June 26, 1995 with the primary objectives to carry on all kinds of banking business in and outside of Bangladesh. DBBL has started its business with foreign bank. DBBL commenced its business as scheduled bank with effect from July 04, 1995 with one branch-Motijheel Branch, Dhaka, with a motto to grow as a leader in the banking arena of Bangladesh through better counseling and effect service to clients and thus to revitalize the economy of the country. All the branches are currently providing truly On-Line banking facility. DBBL resumed its operational activities initially with an authorized capital of Tk.400 million and paid up capital of Tk.202.14 million. An over view of DBBL Dutch-Bangla Bank is a second generation commercial private Bank. During the period of its operation, this bank creates a milestone of success in banking sector. This bank holds an experienced team of banking professional. They achieve this success because of their experienced banking professional team, proper management & so on. Dutch-Bangla Bank Limited is a Bangladesh Netherlands joint venture scheduled commercial bank established in Bangladesh with the primary objective to carry on all kinds of banking business in and outside of Bangladesh. Starting with one Branch in 1996, DBBL has expanded to thirty nine (39) branches including nine Branches outside of

the capital. To provide client services all over Bangladesh it has established a wide correspondent banking relationship with a number of local banks. To facilitate international trade transactions, it has arranged correspondent relationship with large number of international banks which are active across the globe. In addition to its banking activities, Dutch-Bangla Bank Limited takes part in different national activities promoting sports, culture, social awareness, etc. Participation in these activities as sponsors is part of its business development policy. Philosophy of DBBL The objectives of Dutch-Bangla Bank Limited remains to offer modern & innovative products & services to its clients in Bangladesh the partnership with FMO is optimistically scene to offer scopes opportunities to draw on modern tools & techniques of Banking from western world which could be blended with the currently prevalent local customs & practice. The Bank is committed to being a sophisticated prominent and professional institution, providing a one window service to its customers. During the first five years Dutch Bangla Banks strategy was focused on continuing in provident of internal procedures and operating structures, to have a greater control on the quality of our business and to provide better management direction. After five years of working on the Banks structure, its culture and controls, the management is confident that the Bank can move forward on a rapid growth path. The DBBLs corporate philosophy is to build its nonfunded fees and commission income stream, thus reducing its reliance on interest income alone. Core objective of DBBL Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that uphold and epitomize its vaunted marquees Your Trusted Partner Focus of DBBL DBBLs focus is to provide one counter service to our clients covering: Commercial Banking (Deposit Accounts) Consumer Banking (Retail Baking)1. 2. 3. 4. 5. 6. 7. 8. Traveler Cheques Foreign & Inland Remittances Financial Services Corporate Banking Asset & liability management Liquidity & capital Resources Management Information technology Human Resources

Mission Each business unit needs to define its specific mission within the broader company mission. Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. Profits alone do not hold a central focus in the Banks operation; because man does not live by bread and butter alone. Mission statements are at their best when they are guided by a vision. Vision To become a leading banking institution and play a pivotal role in the development of the country Vision, a compelling view of a future yet to be, creates meaning and purpose which catapults both individuals and organizations to high levels of achievement. Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBLs essence and ethos rest on a cosmos of creativity and the marvel-magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development. Strategies of DBBL The strategies are as follows:

To manage and operate the Bank in the most efficient manner to enhance financial performance and to control cost of fund To strive for customer satisfaction through quality control and delivery of timely services To identify customers credit and other banking needs and monitor their perception towards our performance in meeting those requirements. To review and update policies, procedures and practices to enhance the ability to extend better service to customers. To train and develop all employees and provide them adequate resources so that customers need can be reasonably addressed. To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to employees in a timely fashion To diversify portfolio both in the retail and wholesale market To increase direct contact with customers in order to cultivate a closer relationship between the bank and its customers.

Objectives of DBBL

To earn and maintain CAMEL Rating Strong To establish relationship banking and improve service quality through development of Strategic Marketing Plans. To remain one of the best banks in Bangladesh in terms of profitability and assets quality. To introduce fully automated systems through integration of information technology.

To ensure an adequate rate of return on investment To keep risk position at an acceptable range (including any off balance sheet risk)

Departments of DBBL Human Resources Department Success of any organization largely depends on the efficiency & competence of its manpower. The organization provides a comprehensive range of human resources services to staff and managers and all prospective employees. A full list of staff and their relevant areas of responsibility are conduct here. This includes Senior Management, Operations group including HR Advisors, Staff Development, and Job Evaluation & Systems & Management Information group. Our vision is to be a department that leads on and delivers the Universitys Staff Experience Strategy, works as a business partner within the organization and leads by example in relation to university values. Services provided under this department: We provide the following range of services:

Strategic planning and organizational development faculty and departmental operational advice, support and services staff development projects and information management

Equality and Diversity The organization is committed to the support and implementation of the equality and diversity agenda as laid out in our policy. Corporate governance Board of directors Board of Directors 1 Mr. Abul Hasnat Md. Rashidul Islam 2 Mr. Zaheed Hossain Khan 3 Mr. Bernhard Frey 4 Mr. Shahabuddin Ahmed 5 Mr. Md. Shahidur Rahman 6 Mr. Md. Yeasin Ali International Division Designation Chairman Director Director Director Director Managing Director

Internal trade means foreign currency and includes all deposits, credit and balances payable in foreign currency as well as all foreign currency instruments, such as, Drafts, Travelers Cheques, Bills of Exchange, and Promissory Notes payable in any foreign country. Anything that conveys a right to wealth in another country is Foreign Exchange. DBBL provides premium quality service for repatriation and collection of remittance with the help of its first class correspondents and trained personnel. By introducing on-line banking service and becoming a SWIFT Alliance Access Member, which enable its branches to send and receive payment instruction directly, which helps provide premium services. Credit department Risk is an integral part of business & the main role of our risk management principle is to find the optimal balance of risk & return. Bangladesh bank has undertaken a project to install a core risk management system in every bank. DBBL Bank Ltd installing the same system in respect to Asset liability management, Foreign exchange management, internal control & compliance, Anti money laundering. The bank prudently controls asset allocation through limiting exposure to industry sector & setting client limit. Moreover, the bank approved a new organization structure to accommodate core risk management perspective. Loans and Advances Loans and advances Agriculture Working Capital for Industry Small Shop Finance and SME Transport Loan Consumer Credit IT department Dutch-Bangla Bank Limited (DBBL) undertook a project with BASIS (Bangladesh Association of Software and Information Services) to award the best IT uses by Bangladeshi companies. DBBL and BASIS organized IT award-giving ceremony in this regard. The award Ceremony was held on 30th November 2005, which was the day before last day of BASIS SOFfEXP02005 (November 27December 01, 2005). This was a gala evening (with dinner and cultural program) attended by around 700 dignitaries including government high officials & policy makers, corporate heads, representatives from development agencies, IT policy makers, academicians and the IT industry members. In this regards, DBBLs contribution in supporting this event was 50% of the estimated cost with Tk.6.25 Lac.
PRODUCTS AND SERVICES Products and services offered by DBBL

Interest Rate 8.00% 11.00% 11.50% 14.50% 12.50% 15.50% 13.00% 16.00% 13.50% 16.50% 13.50% 16.50%

Retail Banking Remittance and collection Import and export handling and financing Corporate Banking Project Finance Investment Banking

Consumer credit Agriculture Loan Real time any branch banking 24 Hours Banking through ATM o DBBL-NEXUS ATM & Debit card o DBBL-Maestro/Cirrus ATM & Debit card o DBBL Credit card o Internet Banking o SMS Banking o On line Banking through all Branches

Banking Products Various deposits:

Savings Deposit Account Current Deposit Account Short Term Deposit Account Resident Foreign Currency Deposit Foreign Currency Deposit Convertible Taka Account Non-Convertible Taka Account Exporters FC Deposit(FBPAR) Current Deposit Account-Bank Short Term Deposit Account-Bank

Term Deposit Term Deposit 3 MonthsTerm Deposit 6 Months Term Deposit 12 Months Term Deposit 36 Months 6 Months Payout Term Deposit 12 Months Term Deposit 36 Months 1 Year Payout Term Deposit 24 Months Term Deposit above 36 MonthsMonthly Term Deposit Banks Term Deposit 3 Months Banks Term Deposit 6 Months Banks Term Deposit 12 Months Banks Loan & Advances

Term Deposit 24 Months 1 Year PayoutTerm Deposit 36 Months

Loan against Trust Receipt Transport Loan Consumer Credit Scheme Real Estate Loan (Res. & Comm.) Loan Against Accepted Bill Industrial Term Loan Agricultural Term Loan Lease Finance

Other Term Loan FMO Local currency Loan for SME FMO Foreign currency Loan Cash Credit (Hypothecation) Small Shop Financing Scheme

ATM Services We can find DBBL ATMs beside our home, in our office premise, nearby market, university, college & school premises, Airport, Railway stations etc., throughout the country. Using any of the DBBL ATM pools any where in the country, you can perform the following:

Account balance enquiry Cash withdrawal 24 hours a day, 7 days a week, 365 days a year Cash deposit to a certain number of ATMs any time Mini statement printing PIN (Personal Identification Number) change

All the ATMs can accept DBBL-NEXUS ATM / POS card, DBBL-Maestro/Cirrus Debit card and DBBL Credit card PRODUCTS ATM ATM ATM ATM Internet Banking SMS Banking Treasury DBBL is well equipped for treasury operation through subscribing Reuterss terminal and operating in SWIFT network. It is also well equipped with competent human resources for efficient dealing. DBBLs treasury quotes competitive exchange rate for major currencies:

NAME NEXUS Debit card Maestro Debit card Maestro Debit card DBBL Credit card

CUSTOMER All a/c Holders All a/c Holders All a/c Holders Limited All a/c Holders All a/c Holders

CHARGE Yes Yes Yes Yes Yes Yes

Spot Sale/Purchase Forward Sale/Purchase Money market Inter bank & Corporate SWAPS

Account Service DBBL provides all the accounts services as prescribed by the guidelines of Central Bank (Bangladesh Bank). DBBL offers competitive interest rate and provides premium quality services for the accounts. Account services are:

Foreign Currency Account Non-Resident Foreign Currency Deposit Account (NFCD) Resident Foreign Currency Deposit Account (RFCD)

Convertible and Non-Convertible Taka Account

Foreign Trade DBBL extends finance to the importers in the form of:

Opening of L/C (Foreign/Local) Credit against Trust Receipt for retirement of import bills. Short term & medium term loans for installation of imported.

Import Finance

DBBL extends finance to the importers in the form of: 1. Opening of L/C 2. Credit against Trust Receipt for retirement of import bills.
Export Finance

Pre-Shipment Finance Pre-Shipment finance in the form of: I) Opening of Back-to-Back L/C II) Export Cash Credit Post-Shipment Finance Post-Shipment finance in the form of: I) Foreign/Local Documentary Bills Purchase II) Export Credit Guarantee III) Finance against cash incentive
Foreign Remittance

DBBL provides premium quality service for repatriation and collection of remittance with the help of its first class correspondents and trained personnel. By introducing on-line banking service and becoming a SWIFT Alliance Access Member, which enable its branches to send and receive payment instruction directly, which helps provide premium services. Remittance services provided by DBBL are:

Inward Remittance: Draft, TT Outward Remittance: FDD, TT, TC and Cash (FC)

Western Union

Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfer company in the world. This modern Electronic Technology based money transfer company has earned world wide reputation in transferring money from one country to another country within the shortest possible time. Dutch-Bangla Bank Limited has set up a Representation Agreement with Western Union Financial Services Inc. U.S.A. as on 14th February 2006.
DBBL Internet Banking

DBBL Internet banking enables customer to access his/her personal or business accounts anytime anywhere from home, office or when traveling. Internet Banking gives customer the freedom to choose his/her own banking hours. It can save time, money and effort. Its fast, easy, secure and best of all. Using any of the DBBL ATM pools any where in the country, you can perform the following:

Securities with DBBL Internet Banking A/c Opening & Accessing Internet Banking Internet Banking Features Terms & Conditions of Internet Banking

SME Banking

SME cash credit Purpose To meet up working capital requirement of Business Small or Medium Entrepreneur like : an entity, ideally not a public limited company, does not employ more than 150 persons (if it is manufacturing concern) and 25 persons (if it is a trading concern) and 25 persons (if it is a service concern) and also fulfils the following criteria :

A service concern with total assets at cost excluding land and building from Tk. 50,000/- to Tk. 10 crore A trading concern with total assets at cost excluding land and building from Tk. 50,000/- to Tk. 10 crore A manufacturing concern with total assets at cost excluding land and building from Tk. 50,000/- to Tk. 20 crore

Target Customers Minimum : TK. 100,000/Maximum : TK. 5,000,000/-Clean : Up to Tk.

500,000/Collateralized : Up to Tk. 5,000,000/Loan Amount Clean : @17.00% Collateralized : @16.00% Collateralized with 30% Cash Security : @15.00% 100% cash security : @TD+2% spread (considering DBBL TD) and @14% p.a. (considering other cash security/ other bank TD) 1% of the Sanctioned Limit. 0.50% of the Sanctioned Limit. 1 year Renewable (if total credit turnover is at least 4 times of existing limit) Additional 3% p.a. No EOL to be allowed without approval of the Head Office. All relevant Stamp charges & VAT (as per Govt. rules) Nationality: Bangladeshi by birth Experience: As an entrepreneur must have experience at least 2 (Two) years Age: Minimum 21 years to maximum 65 years For renewal purposes maximum age may be considered up to 70 years

Interest Rate (Floating)

Processing Fee Renewal/ Enhancement Fee Tenure Overdue charge

Stamp charges & VAT

Eligible Entrepreneur /Owner

SME term loan Purpose To meet up working capital requirement of Business Small or Medium Entrepreneur like : an entity, ideally not a public limited company, does not employ more than 150 persons (if it is manufacturing concern) and 25 persons (if it is a trading concern) and 25 persons (if it is a service concern) and also fulfils the following criteria :

Target Customers

A service concern with total assets at cost excluding land and building from Tk. 50,000/- to Tk. 10 crore A trading concern with total assets at cost excluding land and building from Tk. 50,000/- to Tk. 10 crore A manufacturing concern with total assets at cost excluding land and building from Tk. 50,000/- to Tk. 20 crore

Minimum : TK. 100,000/Maximum : TK. 5,000,000/-Clean : Up to Tk. 500,000/-

Collateralized : Up to Tk. 5,000,000/-

Loan Amount

Interest Rate

Processing Fee Renewal/ Enhancement Fee Tenure Overdue charge

Stamp charges & VAT

Eligible Entrepreneur /Owner

(Floating) Clean : @17.00% Collateralized : @16.00% Collateralized with 30% Cash Security : @15.00% 100% cash security : @TD+2% spread (considering DBBL TD) and @14% p.a. (considering other cash security/ other bank TD) 1% of the Sanctioned Limit. 0.50% of the Sanctioned Limit. 1 year Renewable (if total credit turnover is at least 4 times of existing limit) Additional 3% p.a. No EOL to be allowed without approval of the Head Office. All relevant Stamp charges & VAT (as per Govt. rules) Nationality: Bangladeshi by birth Experience: As an entrepreneur must have experience at least 2 (Two) years Age: Minimum 21 years to maximum 65 years For renewal purposes maximum age may be considered up to 70 years

Small shop financing scheme Purpose The purpose of the loan may be Seasonal Financing of inventory or Trade Receivable or both to the business entity Nature of Business Wholesalers, Manufacturers / Assemblers and Retailers of machinery, accessories, agriculture items, etc Loan Amount Maximum TK. 500,000/Interest Rate @ 17% p.a. with quarterly rests Processing Fee @ 0.5% of the loan amount but not less than Tk. 1,000/Tenure 1 year Renewable Primary security Secured by marketable stocks Establishment Must have Shop Establishment Lease Agreement Minimum three years of unexpired lease agreement of the shop Location Within the command area of the branch of DBBL Govt. Recognition Trade License and TIN Account relationship with DBBL/other Bank(s), if Satisfactory deposit account with DBBL for any minimum 06 months or account with any other bank for one year or more

Business Experience Average Inventory/stock Tripartite Agreement

At least 03 years of experience in this line of trade Value should be at least twice the proposed loan amount. Landlord has to be agreeable to sign tripartite agreement & comply other required formalities in case of leased property / position holding