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Customer service delivery system of Brac Bank

Executive summary

Banking constitutes an important segment of the financial sector of any country. Generally Banking means deposit mobilization and deployment of those deposits into advances or investments in different sectors.

The study was designed to analysis the Customer Services of the BRAC Bank Limited. This report is prepared as requirement of the internship of MBA program of Stamford University Bangladesh. This report will give a clear idea about the product and services of BRAC Bank Ltd.

BRAC Bank limited was established in June 2001 with a clear manifesto of demonstrating the operational meanings of participatory economy, banking and financial activities. The philosophy of BRAC Bank ltd is to establish as egalitarian society based on the principal of social justice and equity. As an integral part of this process BRAC Bank limited introduced measures to abolish interest and charge or pay fixed interest on loans or deposits. Interest of pre determined interest on deposits; the depositors participate in the profit of the bank. Whereas, interest based conventional banks pay a fixed interest on savings and time deposits and grant loans with interest for any purpose.

As a beginner in the banking industry BRAC Bank Limited is performing well as it has acquired the possessions and human resources of higher quality. BRAC Bank Limited will be more effective in our economy by adopting modern financial technology by extending their activities in human & social welfare.

INTRODUCTION

1.1 Objective of the Study

The primary objective of this report is to use the theoretical concepts, gained in the classroom situations, in analyzing real life scenarios. This is also a partial requirement of the MBA program. This objective is basically met by remaining attached with a reputed organization and by gaining some real life experiences, so that it adds value to the knowledge base of me, MBA program. In case of this report, the objectives are:

· To fulfill the partial requirement of MBA program.

· To have an exposure on the banking environment of Bangladesh.

· To gain different functions of Bank.

· To have some practical experience that will be helpful of my MBA program.

· To facilitate the students apply their theoretical knowledge in practical level of operation of a Bank as well as find our the differences between theory and practice.

· To measure the level of satisfaction of customers and how Customer Service is related with customer satisfaction.

· To gain professional knowledge of how the employees of Customer Service carry out their responsibilities.

· To understand how Customer Service provides services to different branches of BRAC Bank and what benefits the branches are getting from the functions of this department.

· To identify the importance of customer service in BRAC Bank.

1.2 Methodology of the Study

I went to BRAC Bank Limited, Rampura Branch for my internship program. The basic data both primary and secondary used in the preparation of this report are obtained from:

· Personal observation of different tasks.

· Face to face conversation with the Bank officers.

· Studying of different files and books.

· Annual report of BRAC Bank Ltd.

· Periodicals published by Bangladesh Bank.

Observing and analyzing the broad performance of a Bank and one of its Branches are not that easy, particularly in such a short duration like our (Only 3 months). Shortage of recent data as well as information of different activities of BRAC Bank was a great problem for me to illustrate the actual and up-to-date business position of the Bank. Moreover, all the employees were always busy with heavy workload.

1.3 Limitation of the study

Objective of the practical orientation program is to have practical exposure for the students our tenure was for three months only, which was somehow not sufficient. After working whole day in the office it was very much difficult, if not impossible to study again the theoretical aspects of banking. Reporter had to face some limitations at the time of preparing this report which are:

· The one of the main limitations of the research paper was to conduct a small-scale survey on consumers because the report issues are very much confidential so it’s required to make it precise.

· Lack of experience is another limitation.

· Time period was the other limitation for collecting information, which was only three month long and beside this I had to stay and work for long 10:00 to 6:00 p.m and some time till 7 p.m.

· Customers were not free to respond.

· Sample number was small due to lack of time.

1.4 Scope of the Report

This report will help the reader to understand the product & Services of BRAC Bank Ltd. The study will focus on the following areas of BRAC Bank Ltd.

· BRAC Bank and its overall history

• The level of customer satisfaction of BRAC Bank Ltd.
• How CS is related with the level of satisfaction of BRAC Bank Ltd.

1.5 MY daily activities in

BRAC Bank Limited,

Rampura Branch, Dhaka

I have started my internship program in BRAC Bank Limited, Rampura Branch from 1^st October to 31^st December 2009. From the very beginning I have started working in Customer Service Department. I was introduced to Mr. Mohammed Samiullah, Branch Manager, BRAC Babnk Ltd. Rampura Branch. As instructed by the Branch Manager I have worked under the supervision of Mr. Faiz Ahmed, CSO and after that I worked under the supervision of Ms. Israt Jahan Ferdusy, CSO. In the first day I worked there till 7 PM.

Working hours

I worked there as like a permanent employee. Every one is suppose to be in the office within 9:45 AM. I have tried to maintain the time line. Though there is a sign out time but most of the employees worked in office till 7:00 to 7:30 PM.

Job description

In the 3 months of internship program at Rampura Branch of BRAC Bank, I have tried my best to complete the duties as assigned on me. The job descriptions were as follows:

1. Account opening and closing
2. FDR/DPS opening and closing
3. ATM Card Service request
4. Issuing Filling up the statement
5. Issuing Bank’s certificate
6. Check Book request processing
7. Locker Application
8. Reconciliation of Check Book
9. Reconciliation of ATM Card
10. PIN Reconciliation
11. Welcome Pack Reconciliation
12. Capture Card Reconciliation
13. FD receipt Reconciliation
14. Credit card check processing
15. PIN reissue processing

ABOUT THE BANK

2.1 An over view of the Bank:

The word ‘bank’ comes from the Italian word ‘Banco’ or ‘Banque’. Banco or Banque means a bench. In early stage money transaction activities was generally done by sitting on the benches in a market. Some body says, the word ‘bank’ comes from the German word ‘bank’ that means the joint stock fund. But now this word ‘bank’ deals with the money transaction that made in an institution by following some prescribed rules.

The development of a country depends on the economic condition of the country. Attainment of the desired level of economic development is targeted by the developing economics for a number of reasons viz. increasing population, scarce resources, high rate of unemployment, technological backwardness, low level of standard of living, etc. the process of economic development needs capital formation besides other structural changes like improvement in skill and efficiency of manpower, better organization, health and education system, etc. Capital formation is deemed as the most significant variable of economic development. An efficient and well-organized financial system contributes to the much- desired economic development through capital formation, which can be divided into three stages viz., savings, financing and investment.

Banks play a dynamic role in the economic development of a nation. Schumpeter regarded the banking system as one of the two key agents (the other being entrepreneurship) in the whole process of development.

Historically, the focus of the commercial banking system was entirely short term, providing only working capital and trade finance. But the areas of commercial banking have been expected over time. In the universal banking system of Germany, commercial banks are also an important source of investment finance. They function like investment banks and provide underwriting and brokerage, and they also have considerable control over firms both through their own equity holding and proxy votes for private investors, and by appointing representatives on the boards of firms.

2.2 Banking System in Bangladesh:

Bangladesh inherited its banking structure from the British regime and had 44 banks and other financial institutions before the partition of India in 1947. Till liberation of Bangladesh all banks were privately owned and thus the benefits / facilities of banking were enjoyed by only a small elite group of persons and the banks in private sector played a traditional role without fulfilling socio-economic objectives of a welfare state.

The Dhaka bank established in 1806 was the first commercial bank in the Bangladesh region of British India. Bangal bank, the first british-partionized modern bank established in India in 1784, had opened its two branches in 1873 in Sirajganj and Chittagong of Bangladesh region. Later in 1862, the Bengal Bank purchased the Dhaka Bank and opened its first branch in Dhaka in the same year by reconstituting and merging the Dhaka Bank.

Thereafter, another branch of Bengal Bank was opened in Chandpur in 1900. A number of other branches of Bengal Bank were opened in this region and some branches had been closed in course of time. There were six other branches of Bengal Bank in operation in the territory of Bangladesh until the partition of British-India in 1947 and these branches were at Chittagong (1906), Mymensing (1922), Rangpur (1923), Chandpur (1924) and Narayanganj (1926).

Following the emergence of Pakistan in 1947, State Bank of Pakistan, the Central Bank of the country, came into being in July 1948. Later, the National Bank of Pakistan, a strong commercial bank was set up in 1949. In all, 36 scheduled commercial banks were in operation in the whole Pakistan until 1971.

Pakistanis owned most of these banks and only three of them namely, National Bank of Pakistan, Habib Bank Ltd. And the Australasian Bank Ltd. Had one branch of each in East Pakistan in 1949. During 1950-58, three other Pakistani-owned banks, Premier Bank Ltd., Bank of Bhowalpur Ltd. And Muslim Commercial Bank had opened their branch in East Pakistan. Four Pakistani-owned banks, the United Bank Ltd., Union Bank Ltd., Standard Bank Ltd. And the Commerce Bank Ltd. conducted banking business in the province during 1959-1965.

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But all of them had their headquarters in West Pakistan. East Pakistan had only two banks owned by local business groups with headquarters in Dhaka.

These were the Eastern Mercantile Bank Ltd. (presently Pubali Bank Ltd.) and Easter Banking Corporation Ltd. (presently Uttara Bank Ltd.) established in 1959 and 1965 respectively.

In the decade of seventies, in an atmosphere of fully regulated banking, the nationalized Commercial banks played the active role in intermediation and allocation of credit along with the specialized financial institutions. In the beginning of 1971, there were 1130 branches of 12 banks in operation in East Pakistan. The foundation of independent banking system in Bangladesh was laid through the establishment of the Bangladesh Bank in 1972 by the Presidential Order No. 127 of 1972 (which took effect on 16^th December, 1971).

Through the Order, the eastern branch of the former State Bank of Pakistan at Dhaka was renamed as the Bangladesh Bank as a full-fledged office of the Central Bank of Bangladesh and the entire undertaking of the State Bank of Pakistan in relation to Bangladesh has been delivered to the bank

Bangladesh Bank has been entrusted with all of the traditional central banking functions including the sole responsibilities of issuing currency, keeping the reserves, formulating and managing the monetary and credit policy, regulating the banking system, stabilizing domestic and external monetary value, preserving the par value of Bangladesh Taka, fostering economic growth and development and the development of the country’s money market.

After liberation of the country, all the banks were nationalized with a view to utilizing the services of the banks in conformity with Government policy for achieving socialistic pattern of society.

The main objectives of nationalization of banks was to ensure that the banking system serves a much wider section of the community by dispensing credit to the poorest and the weaker section of the society and also to remove the regional disparities and help in development of backward areas and serve better the needs of development of the economy in conformity with national policy and objectives formulated by the Government,

That means a society with wealth distributed as equitably as possible. The Bangladesh Banks (Nationalization) Order enacted in 1972 nationalized all banks except foreign ones.

2.3 Background of BRAC Bank Ltd.

BRAC Bank Ltd, one of the latest generations of commercial banks, which started its journey on the 4^th of July 2001 with a vision to be the absolute market leader through providing all kinds of banking services suitable to the dynamic demands of both business and individual in the competitive market.

BRAC Bank Limited, a scheduled commercial bank established under the Banking Company Act, 1991 and incorporated as a public company limited by shares on May 20, 1999 under the Companies Act 1994 in Bangladesh.

BRAC Bank has embarked with an avowed policy to provide “best-in-the-class” services to its diverse range of customers spread across the country based on latest information technology. To keep in tied with its sponsor, BRAC’s goals, the bank endeavors to provide mass financing especially to focus on under-served enterprises across the rural – urban area. The bank focused on relationship based Banking, as it believes that the pursuit of profit and developmental goals are mutually reinforcing. This focus makes the bank to emphasize more on to explore and access market opportunities as well as build asset base to its clients conforming significant contribution to the profitability of the Bank.

2.4 Corporate Vision, Mission & Values

Corporate Vision

” Building a profitable and socially responsible financial institution focused on Markets and Business with growth potential, thereby assisting BRAC and stakeholders 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 Retained 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 fee based income

Keep our Debt Charges at 2% to maintain a steady profitable growth

Achieve efficient synergies between the bank’s Branches, SME Unit Offices and BRAC field offices for delivery of Remittance and Bank’s other products and services

Manage various lines of business in a fully controlled environment with no compromise on service quality

Keep a diverse, far flung team fully motivated and driven towards materializing the bank’s vision into reality

Corporate Values

Our Strength emanates from our owner – BRAC. This means, we will hold the following values and will be guided by them as we do our jobs.

» Value the fact that we are 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 a 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.

3.0 Product and Services of BRAC Bank Ltd.:

3.0 SME Banking

The most valuable natural resource of Bangladesh is its people. As a nation we struggled for our independence and now the attainment of economic uplift is the main goal. Micro lenders are working here in the financial field, providing very small amount and on the other hand regular commercial banks have been providing bigger amount of loans to larger industries and trading organizations. But the small and medium entrepreneurs were overlooked. This missing middle group is the small but striving entrepreneurs, who because of lack of fund cannot pursue their financial uplift, as they have no property to provide as equity to the commercial banks. With this end in view-BRAC Bank was opened to serve these small but hard working entrepreneurs with double bottom line vision. As a socially responsible bank, BRAC Bank wants to see the emancipation of grass-roots level to their economic height and also to make profit by serving the interest of missing middle groups. 50% of our total portfolio usually collected from urban areas, are channeled to support these entrepreneurs who in future will become the potential strength of our economy. We are the market leaders in giving loans to Small and Medium Entrepreneurs. We have been doing it for the last five years.

3.1 SME Products:

Anonno Rin

Anonno Rin” is a business loan designed to finance small scale trading, manufacturing and service ventures, especially to to help small and medium entrepreneurs to meet their short-term cash flow shortages and bridge the fund-flow gaps.

Eligibility

· Entrepreneurs with minimum 2 years experience in the same line of business

· Business must be a going- concern with more than 1 year in operation.

Loan Limit:

• From BDT 3 lac to BDT 9.5 lac

Features

• Loan without mortgage
• Loan for Working Capital Finance and/or fixed assets purchase
• Easy repayment system of monthly installment or Single Installment
• For excellent borrowers who have paid or are paying in due times, we offer discounted rates
• Quick, quality banking throughout the country.

Apurbo Rin

Apurbo is a loan facility for Small and Medium business. Apurbo loan has been designed and targeted for relatively bigger business units requiring loan above tk. 8 lacs to 30 lacs.

Eligibility

· Entrepreneurs having a minimum of 3 years of some business activities

· A business which must be a going concern for 3 years.

Loan Limit:

• Starting from BDT 8 lac to maximum of BDT 30 lac

Features

• Simple loan processing for expanding your business
• Quick disbursement
• Disbursement in one or two installments
• Flexible monthly repayment plan

Pathshala Rin

“Pathshala Rin” is a loan designed to meet the needs of small and medium sized private educational institutions, such as kindergartens, schools and colleges etc.

Eligibility

· The educational institution must be in operation for minimum 3 years

· The educational institute must be a profit making concern

Loan Limit:

• Minimum BDT 3 lac to maximum BDT 30 lac

Features

• Loan up to 9.5 lacs without Mortgage
• Loan for purchasing fixed assets
• Easy monthly installment
• Minimum documents
• Easy & faster processing
• Flexible interest rate based on security and loan amount.

Aroggo Rin

“Aroggo” is a loan allowed to various Health service Provider like private clinics, diagnostics centers and doctors’ chambers. The product offers fixed assets purchase financing under equated Monthly Installments.

Eligibility

· Minimum 2(two) years in operation

· Health center must be located in the same address for at least 6 months

· Health center must be a profit making concern

· Doctors having 5 years of experience can avail the loan in his/her personal name.

Loan Limit:

• Minimum of 3 lac to maximum of 30 lac

Features

• Loan up to 9.5 lacs without Mortgage
• Minimum documents
• Easy loan processing
• Loan repayment schedule is spread up to 3 years
• Flexible interest rate based on security and loan amount

Digoon Rin

This is a double loan on your deposit. Now you do not need to encash your savings rather you can take double amount of loan on your deposit for your business expansion.

Eligibility

· Entrepreneur having minimum 2 years of business activitie

· The business which must be a going concern for 2 years

· Cash security (BRAC Bank FDR) 50% of the loan amount.

Loan Limit:

• Minimum of 5 lac to maximum of 30 lac BDT

Features

• Double amount of loan on your deposit
• Attractive return against the deposit
• Flexible repayment plan in monthly installment and single installments
• Quick disbursement

Prothoma Rin

“PROTHOMA RIN” is a loan facility for small and medium sized business, which are operated by women entrepreneur. The product offers terminating loan facilities for the purpose of working capital finance and/or fixed assets purchase.

Eligibility

· Entrepreneurs with minimum 2 years experience in the same line of business

· Minimum 1(One) year of continuous business history.

Loan Limit:

• From minimum BDT 3 lac up to maximum of BDT 9.5 lac

Features

• Loan without Mortgage
• Easy repayment system
• Minimum documents
• Easy & faster processing
• For excellent borrowers who have paid or are paying in due times, we offer discounted rates.

Trade Plus

Trade plus is a composite facility for small & medium sized import-oriented businesses to meet their trade finance requirements.

Eligibility

An import-oriented business having valid trade license, Import registration certificate, V.A.T. Registration certificate & T.I.N. Certificate.

Features

• Two types of Letter of Credit Facilities – One Off LC and Revolving LC
• Two types of post import finance facility –LATR & Revolving loan
• Overdraft facility for day to day working expenses
• Loan tenure of Letter of Credit – 180 days
• Flexible repayment system

Limit

• LC (One-Off): BDT 3.00 Lac – BDT 30.00 Lac
• LC (Revolving): BDT 5.00 Lac – BDT 30.00 Lac
• LATR: BDT 3.00 Lac – BDT 30.00 Lac
• Revolving Loan: BDT 5.00 Lac – BDT 30.00 Lac
• Overdraft: BDT 5.00 Lac – BDT 30.00 Lac.

3.2 Terms and Conditions of SME Loan

The SME department of BRAC Bank will provide small loans to potential borrower under the following terms and condition:

· The potential borrowers and enterprises have to fulfill the selection criteria

· The loan amount is between tk 2 lacs to 30 lacs.

· SME will impose loan processing fees for evaluation / processing a loan proposal as following;

Loan Amount Loan Processing Fee

2 lacs to 2.99 lacs Tk 5000

3 lacs to 5 lacs Tk 7500

5.01 lacs to 15 lacs Tk 10,000

5.01 lacs to 30 lacs Tk 15,000

· Loan can be repaid in two ways:

a) In equal monthly loan installment with monthly interest payment, or

b) By one single payment at maturity, with interest repayable a quarter end residual on maturity

· Loan may have various validates, such as, 3 months, 4 months, 6 months, 9 months, 12 months, 15 months, 18 months, 24 months, 30 months and 36 months.

· The borrower must open a bank account with the same bank and branch where the SME has its account

· Loan that approved will be disbursed to the client through that account by account payee cheque in the following manner: Borrower name, Account name, Banks name and Branch’s name

· The loan will be realized by 1^st every months, starting from the very next months whatever the date of disbursement, through account payee cheque in favor of BRAC Bank Limited A/C . With Bank’s named and branches name

· The borrower has to issue an account payable blank cheque in favor of BRAC Bank Limited before any loan disbursement along with all other security.

· The borrower will install a signboard in a visible place of business of manufacturing unit mentioned that financed by “BRAC Bank Limited”.

· The borrower has to give necessary and adequate collateral and other securities as per bank’s requirement and procedures.

· SME, BRAC Bank may provide 100% of the Net Required Working Capital but not exceeding 75% of the aggregate value of the Inventory and Account Receivables. Such loan may be given for periods not exceeding 18 months. Loan could also be considered for shorter periods including one time principal repayment facility, as stated in loan product sheet.

· In case of fixed asset Financing 50% of the acquisition cost of the fixed asset may be considered. While evaluating loans against fixed asset, adequate grace period may be considered depending on the cash generation after the installation of the fixed assets. Maximum period to be considered including grace period may be for 36 months.

4.0 RETAIL BANKING

4.1 Loan Products:

Salary Loan

Keep an extra 15-month’s salary in your pocket. You can get BRAC Bank Salary loan, Loan against your salary. If you are a salaried individual working in Bangladesh, Please read on. Because Salary Loan from BRAC Bank has been designed with just you in our minds.

Eligibility

· Employed as a regular salaried staff

· Have minimum age of 25 years, max – 53 years (at the time of application)

· If you earn a gross monthly salary of Tk. 10,000 *

Maximum Amount

· Anywhere between 1.5 lac to 10 lac (maximum)

Features

· Loan up to 15 times of your Salary *

· No collateral of cash securities

· Loan processed just within 24 hours

· Flexible repayment Equal Monthly Installments (EMIs) over a period of 12 months to 60 months *

· Person with salary account with BRAC Bank will enjoy 1% less than the prevailing interest rate

Documents required

· Last 3 month’s bank statement

· Last salary slip/Letter of introduction

· Proof of identity

· Proof of residence

· Proof of employment of minimum 2 years at the current organization.

Study Loan

‘Your gateway to the world’ BRAC Bank Study Loan gives your child deserves the best education and you have planned it ahead. But worried about financing? BRAC bank has the perfect solution for your child’s future.

Eligibility

· Parent/ financial guarantor of the student pursuing higher education locally and abroad

· Earning TK 25,000 per month

· Aged between 30 to 60 years

Business Person:

· TIN

· Company and personal Bank statement (latest) 6 months

Maximum Amount

· 15 times of your gross monthly income

Features

· Small Monthly Installments

· Repayment scheme up to maximum of 5 years

· Multipurpose facility to meet living expenses, airfare, personal expenses beside tuition as well

· For both salaried and self employed.

Car Loan

Why toy with your dreams when you can own one’, BRAC Bank Car Loan can stop your dreaming and Start driving Whether you want to purchase a brand new car or a reconditioned one, we have the most customer-friendly car loan scheme available for you.

Eligibility

· Both salaried executives and business persons

· Age between 21 at the time of application to 60 at the time of maturity

· Minimum monthly income BDT 25,000

· Length of service/Age of business: Minimum 2 years

Maximum Amount

• 100% of the vehicle price
• Maximum BDT 2 million

Features

• 100% Car value financing Loan status in 72 hours Both unregistered Brand New/Reconditioned car finance
• Loan term: 12-60 months

* This figures are indicative and can change over time

Travel Loan

‘It’s time to fly’, BRAC Bank Travel Loan opens the door for planning to take a trip abroad and worried about financing? Before you start packing your bags for vacation abroad, you have too many things to take care. Leave your money- matters to us while you pack your bags. Our fast and easy loan processing will simply add excitement to your travel plan.

Eligibility

· An individual with minimum monthly income of TK 15,000

· A salaried or a self employed person

· Aged between 25 to 53 years

Maximum Amount

· 8 to 10 times of gross salary

Features

· Small Monthly Installments

· 50% off on Foreign Currency Endorsement Fees

· For Salaried and self-Employed individuals

What do you need to apply?

· For salaried employees, tourist visa of the traveling country, last 3 month’s bank statement, last salary slip/ letter of introduction showing salary, proof of ID, proof of residence, business card, photocopy of passport, quotation from travel agency regarding airfare, proof of employment of minimum 2 years, applicant’s & employer’s name in the address field family member guarantee.

· For a self- employed person, tourist visa of the traveling country, last six months bank statement, copy of trade license, TIN Certificate, proof of residence, spouse guarantee, business card, photocopy of passport, quotation from travel agency regarding airfare.

Teachers’ Loan

‘Honest profession, Honest Service’. BRAC Bank Teachers’ Loan provides a wedding or a dream holiday, financing a business or surviving an emergency, Teachers Loan can be yours just within three days of application!

Eligibility

· A teacher of any reputed school or university

· Have a minimum length of service record of at least two years

· Have a minimum net salary of Tk. 5000

· Have a minimum age of 23 years

Maximum Amount

· 10 times of your gross monthly salary

· The loan amount stretches from Tk. 50,000 to Tk. 10,00,000 (maximum)

Features

· Fastest Processing Time

· Small Monthly Installments

· Minimum Loan Documentation

Now Loan:

Customer Segment: Salaried Individuals.

Purpose:

Purchase of home applicants, furniture, Computer Land and other consumer durables etc. for personal use.

Loan to price ratio: 100%.

Age: 25-55 years (at the time of application). Exception may be given by authorized personnel.

Minimum Income: 10,000 (Gross Monthly Salary)

Minimum Loan Size: Tk. 15,000.

Maximum Loan size: Maximum 15 times of GMI (Gross Monthly Income) salary with a maximum up to Tk. 1, 50,000. (Exception may be given by authorized personnel).

Length of service: Minimum 2 years with current employment.

Company size: Minimum 4 years in operation and 12 permanent staffs.

Security: – One Post dated cheque for total limit.

– Post Dated Cheque for each six months.

– Installment letter of Hypothecation.

Loan Documents:

1) Any of the document showing current employment as mentioned below

· Latest salary certificate/ slip

· Letter of Introduction or

· Attested statement of account, bill etc. (computerized) showing designation and company’s name.

2) Last 3 month’s bank statement.

3) Proof of ID (Identity card, passport copy etc.)

4) Proof of Residence (Copy of telephone bill, gas bill etc. copy).

5) Business card / ID card copy.

Security Documents:

– DP note

– Letter of Continuation.

– Letter of Hypothecation.

– Letter of Lien Letter of authority.

– Banking Arrangement Letter.

Doctors Loan:

Customer Segment: Those who are in doctor profession with 3 years of continuous experience. He or She might be service holder or self employed.

For service holder as like Salary Loan documents

For Self employees / Business Man calculation by 1 year B/S

Loan Size: 2 lac to 10 lac.

Age Range: 25 to 58 Years.

Tenure: 1 to 5 Years.

Documents:

Copy of registration certificate

Other documents remain as salary loan documents

For self employee / business man—Trade license photocopy, TIN certificate.

Top-Up-Loan:

Customer Segment:

Banking retail borrowers of various reputable financial institutions, who has completed—years of their loan term with that institution without any default in monthly installment.

Age: 27-55 years (at the time of application)

Loan Size: Summation of all EMI paid but minimum 50,000 and maximum 10 lac.

Security:

– Demand Promissory Note.

– Letter of continuation.

– One personal guarantee.

– Letter of Lien and Set-off Irrevocable.

– Letter of authority to encash PDCs (Only BRAC BANK)

– Banking agreement Letter.

Debt Burden Ratio (DBR): 40% on net income.

Income Proof: Income proof to be assessed from Income-Expense statement declared by the borrower.

Special Criteria: The existing loan should be of personal nature and obtained from any bank acceptable to BRAC BANK.

Documentation: For salaried individuals:

– Visiting card or ID copy

– Up to date loan account statement or link account statement.

For Self Employed Individuals:

– Up to date loan account statement or link account statement

– Spouse guarantee.

Interest Rate: 19.50% p.a. (fixed)

Tenor: 1-4 years

Disbursement Mode: Account Credit.

Repayment Method: Equal Monthly Installment (EMI)

Processing Fee: 1% of loan amount, minimum Tk.1000.

Credit Card Loan:

Credit Card Loan is a loan facility offered by the Retail Banking Division to individuals who have credit cards with any bank with sound track record. It is a clean or unsecured loan in the sense that there is no cash security taken against the loan.

Criteria:

• Minimum Credit Card relationship – 12 months.
• Minimum Credit Card Limit – Tk. 40,000.
• Minimum Income: Tk.10, 000 per month.
• Maximum loan up to 5 times of credit card limit.
• 5 times of your credit card limit. While the minimum size of the loan is Taka 50, 000, the maximum amount is taka 1,000,000/.

Documents:

– Latest 3 month’s Credit Card statement

– Copy of current valid Credit Card (front & back)

– Proof of Credit card renewal (i.e. card renewal letter, statement dating back 12 months)

– Proof of ID

– B/S 6 months

For Businessman 2 yrs business proofs with permanent address proof in municipal area is required and for salaried person documents remain as salary loan documents.

HOME LOAN

Specification: If income is BDT 50,001 to 75,000 – 50%

If income is more than 75,000 – 55%

Minimum Loan: BDT 5, 00,000

Maximum Loan: BDT 75, 00,000

Product range and process in brief

Purpose:

1. Purchase of under-construction/semi-completed/completed/2^nd hand apartment or house

• Pay order in favor of the Developer
• Customer account credit is not allowed
• Partial disbursement is allowed as per customer’s discretion. Full disbursement will have to be completed within possession handover

• Customer equity portion to be paid before disbursement

2. Disbursement for Non-categorized Developer/Individual seller:

• Pay Order in favor of the Developer/Individual
• Customer account credit is not allowed
• Full disbursement at a time
• Customer equity portion to be paid before disbursement

Home Credit

Purpose

• Renovation/Extension/Construction.

• Maximum age of the property: 20 years at the time of underwriting only for renovation/extension/disbursement.

• Up to BDT 20 Lac to be credited to customer’s account. Balance amount (if any) will be paid in favor of the vendor/construction firm/interior firm etc through pay order.

• If the loan amount is BDT 20 Lac or less than 20 Lac, in that case maximum 70% of the loan amount will be credited to customer account and the balance amount will be paid in favor of the vendor/construction firm/Developer/contractor/interior firm etc through Pay Order.

• Full disbursement at a time in case of renovation

• For construction/extension, customer will provide a phase plan along with a cost estimate. There will be 4 phases and each phase will be consisting of 25% of loan amount. Customer may require disbursement of more than 1 phase at a time, but in that case, completion of all concerned phases required. Prior each disbursement, progress report must be obtained to ascertain work stage. First 25% of loan amount will be disbursed just after final approval and completion of security process.

Take Over

Purpose

• Transfer of current balance of existing housing loan of the customer to BBL from any other Bank/NBFI

• Minimum age of the property: 20 years at the time of underwriting.

Disbursement

• Pay Order in favor the existing Bank/NBFI
• No amount will be credited to customer account
• Full disbursement at a time

Minimum construction work stage for finance

Home Loan (Purchase from Developer)

• Superstructure completed for CAT – A developers
• Brickwork completed for CAT – B developers
• Tiles work completed (as per valuation report) for non-categorized developers and individual sellers
• Completed for secondhand apartment purchase from individual.

Home Credit

• Renovation: Completed (property age must not exceed 20 years at the time of underwriting)

• Construction/Extension work: At least 1 floor must be completed of the property to be mortgaged (in case of construction). Customer will provide a phase plan along with a cost estimate. There will be 4 phases and each phase will be consisting of 25% of loan amount. Prior each disbursement, progress report must be obtained to ascertain work stage.

Property type to be mortgaged

Apartments/houses on lease hold & private/freehold properties:

• Residential properties (fully completed/semi-completed/under construction)
• Existing residential property (completed/all most completed)
• Second hand residential property (completed)
• Mixed-use properties with commercial usages allowed but financing will be done only against residential portion.

Specification: LTV = Loan amount/Value of mortgaged assets

Maximum Tenor

4.2 Deposits products:

1. Freedom Fixed Deposit:

A special Fixed Deposit scheme allows you to open a fixed deposit with only

Tk. 25,000/- only. This new kind of fixed deposit also offers you a flexible tenure like

3, 6, 12, 24 & 36months.Enjoyfreedomofinvestment.

Features:

· Starting balance Tk. 25,000/-

· Attractive rate of interest

· Interest to be paid at quarterly rest

· Loan facility available

2. Interest First Fixed Deposit

This time you don’t have to wait till maturity to receive interest on your Fixed Deposit. BRAC Bank Interest First Fixed Deposit lets you draw the interest instantly at the time of your deposit. Believe it. A deposit scheme where the client receives interest in advance.

Features

• Instant interest on fixed Deposit
• Interest reinvestment opportunity
• Attractive rate of return
• Loan facility against the IFFD

3. DPS

BRAC Bank’s Deposit Premium Scheme is a savings plan that adds value to your hard earned money.

Features

· Monthly installments can be as low as Tk. 500 or any multiples of it

· Choose any day as your installment date

· Receive a Savings a/c with a personalized cheque book

· On-line banking facilities

· You don’t need to stand in a long queue to deposit your DPS Installments.

· You can always deposit more than one installment in your savings account and we’ll automatically transfer the installment to your DPS account on due dates.

4. BUZINESS Account

“Bizness Account” is an interest bearing current account for sole proprietorship business Entrepreneur.

Eligibility

· Small and medium sized business entrepreneur of a sole proprietorship business

· Opening balance only BDT-10, 000.00

Features

· 4% interest on daily balance

· Smart Business Card

· Cash withdrawal limit in ATM BDT 1,00,000 per day and any amount in POS

· 24 hour Access to ATMs/ POS

· Tk-50, 000 withdrawn facility (per day) from ATM & Tk-100, 000 from POS

· No Minimum Balance, No Ledger Fees, No hidden cost

· Phone-Banking, Online Banking, SMS Banking, Internet Banking facility

5. EZee Account

‘Banking That Sets You Free’ BRAC Bank offers you EZee Account a non-cheque interest bearing account for small savers who are in frequent need of transaction. You don’t need to write a cheque or stand in a long queue to draw your own money from BRAC Bank. You can get an ATM card to operate your account round the clock.

Features

· 24 hour access to ATMs and POS

· Interest on daily balance

· No minimum balance

· No ledger fees

6. Savings Account

A regular savings account offering you interests on your deposit amount.

Features (Conditions Apply)

· 8 transactions

· Cash withdrawal and deposit of 5 lac and above need clarification

· No forfeiture rules or hidden costs

· No requirement for notices to be given before making a withdrawal

· Use our network of ATMs for easy cash withdrawal

· Get mini balance statements from our ATM whenever you need

· Interest rate of 5.5% on average monthly balance

7. Short Term Deposit

A deposit scheme to give returns on your savings.

Features

· Minimum balance required is Tk. 100,000

· Interest paid twice a year but calculated monthly if balance is Tk. 100,000 or above

· Secured returns.

8. Current Account

BRAC Bank’s Current Account is a normal checking account, giving you the option to deposit and withdraw money for your day-to-day needs.

Features

· ATM card for easy cash withdrawal

· Withdraw money from all our ATMS

· Deposit cheques at any of our branches and get the fund transferred to your account immediately

· Use online banking facility for free

· Easy access to our other facilities

9. Salary Account

BRAC Bank Salary Account is a payroll account for Employers and Employees. As an organization, you can opt for our Salary Account to enable easy disbursements of salary & enjoy numerous other benefits.

Eligibility

The organization needs to have a minimum of 10 employees and a payout of Tk. 1 lac per month and an average salary per employee of Tk. 10,000 per month.

Zero Balance

There is no minimum balance required to open Salary Account. Your employees can open Salary Account with zero balance

Non-Checking Account