Chapter
-1
Introduction
Introduction
is new challenge to every bank. The
success or failure of banks greatly depends on SME loan. On the
other hand, credit (whatever general or SME) perchance falls in
hands of defaulter imposing colossal stress on money supply with many other
concomitant side effects.
Against such a backdrop, banks will
have to strike a delicate balance on the seesaw, so smooth credit circulation
in economy can be ensured in order that rural and urban development work does
not suffer, and at the same time credit must not get into a noxious nexus.
Every bank maintains a credit system
to manage its credit. Compliance with some standards in credit management has
been critical for banks to avoid both pecuniary as well as regulatory penalty.
This paper attempts to impart insight on the credit management, especially on SME
of banks. It shows fundamental credit risk policies and challenges to SME
credit. It also shows the guidelines that should govern the implementation of
more detailed lending procedures and risk grading systems so that,
subsequently, banks can establish the balance between healthy flows of credit
in economy simultaneously with saving itself from the loss of bad debt. As well
as bank can maintain proper SME lending for development of rural
and urban area.
concept is explored at length due to
its far-reaching contribution in our economy particularly in elimination of
penury. Then it features the risk of credit for banks, Bangladesh Bank’s
prescriptions on its handling and method of risk measurement and loan
classification. With a brief introduction to BRAC Bank Limited, the
report details thoroughly on the SME credit appraisal, processing
and disbursement. These are very vital for vigilance yet vulnerable to
overlook. The paper ends up with recommendations of do’s and don’ts.
1.2 Statement of the
Research Problem:
A bank’s existence depends mainly on
SME loan. BRAC BANK is one of the leading banks for loan lending. But the bank
faces a lot of problems about SME loan, which are mention below:
1) Before lending the lacking of
properly analyzes the business risk of the borrowers and bank can not forecast
whether there the business will succeed or fail in broad investigation.
2) Bank is not performing well in good
loan project selection, because of pressure from lobbing group.
3) In most of the cases, bank fails to
determine the value of security against the loan.
4) Sometimes delay in disbursement
credit.
5) Negative attitude of borrowers to
repay the loan.
1.3 Objectives of the Study
The sensible motives of
preparing the report on SME Banking are to depict the overall
scenario of banking sector at a glance with the light of BRAC Bank. The prime objectives of this study are to analysis SME
Banking in Bangladesh on perspective of BRAC Bank for building Strong image of SME.
Specific Objectives:
·
To
explain the unique brand image of SME.
·
To
represent the unique features provided by BRAC Bank to its SME
clients and how they perceived those.
·
To
find out the factors on which the customers’ satisfaction level depends.
·
To
suggest ways of improving the service standard and satisfaction level of the
customers.
·
To
show the real condition of BRAC Bank Limited in terms of SME
credit in Bangladesh.
·
To
appraise the competitive position of BRAC Bank Limited.
·
To
create myself as a young Entrepreneur to become a future leader of SME
Banking.
·
To
identify problems and potentials and provide some suggestions that would help
BRAC Bank Limited for more progress on SME credit.
1.4 Methodology of the study
Collecting data directly from the practical field is called
primary source of data. In this case samples were picked up on a judgmental
basis. The methods that were used to collect the primary data are as follows:
·
Face
to face conversations with the employees and opportunities were given by the
management to work in relevant fields in BBL.
·
By
personal interviewing and interacting customers at BBL and officials of other
competitive banks.
·
Observing
various organizational procedures.
·
Various
unstructured papers and weekly report of the bank
·
Interviewing
other banks personnel
The secondary
data has been collected from different publications of BRAC Bank. To clarify
different conceptual matters, Internet and different articles published in the
journals & magazines have been used. The Secondary Sources are:
Secondary data were collected
·
from
prior research report
·
from
different books and periodicals related to the banking sector
·
From
Newspapers and Internet.
·
Annual
reports of BBL.
·
Publication
of Bangladesh bank
In processing the data and presenting these tables and graphs
has been used. SWOT analysis has been used as analytical tool. It is rarely
involves structured questionnaire, large sample and probability sampling plans.
Observation method is used in some cases to complete the paper.
1.5 Limitations of the
study
Limitations, which I
faced while doing my internship report are discussed below:
·
Large-scale
research was not possible due to access constraints.
·
Relevant
data and document collection were difficult due to the organization
confidentiality.
·
Non
availability of data in a systematic way.
·
Information
from other banks faces the verification problem. There is no scope for
authenticate this data from any reliable source.
·
Availability
of the reference book is another limitation.
·
My
lack of experience, faults may arise in the report though I made maximum effort
to avoid all of these.
Chapter
-2
2.1. The Historical
Background BRAC Bank LTD:
BRAC Bank Limited is a scheduled
commercial bank in Bangladesh. It established in Bangladesh under the Banking
Companies Act, 1991 and incorporated as private limited company on 20 May 1999
under the Companies Act, 1994. The primary objective of the Bank is to provide
all kinds of banking business.
At the very beginning the Bank faced
some legal obligation because the High Court of Bangladesh suspended activity
of the Bank and it could fail to start its operations till 03 June 2001.
Eventually, the judgment of the High Court was set aside and dismissed by the
Appellate Division of the Supreme Court on 04 June 2001 and the Bank has
started its operations from July 04, 2001.
The Chairman of the Bank is Mr.
Muhammad A (Rumee) Ali. Now the Managing Director and & CEO of the bank is
Mr. Syed Mahbubur Rahman, Managing Director & CEO. The bank has made a
reasonable progress due to its visionary management people and its appropriate
policy and implementation.
2.2
Profile of BRAC Bank Limited:
BRAC Bank Limited, with institutional
shareholdings by BRAC, International Finance Corporation (IFC) and Shore cap
International, has been the fastest growing Bank in 2004 and 2005. The Bank
operates under a “Double Bottom Line” agenda where profit and social
responsibility go hand in hand as it strives towards a poverty-free,
enlightened Bangladesh.
A fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored
market niches in the Small and Medium Enterprise Business, which hitherto has
remained largely untapped within the country. In the last ten years of
operation, the Bank has disbursed over BDT 2 billion in loans to nearly 83,000
small and medium entrepreneurs. The management of the Bank believes that this
sector of the economy can contribute the most to the rapid generation of
employment in Bangladesh. Since inception in July 2001, BRAC Bank becomes
one of the country’s fastest growing banks with 151 branches, over 250 ATM’s,
421 SME Unit Offices and over 8,183 employees.
Figure: Share holders contribution
BRAC Bank
will be the absolute market leader in the number of loans given to small and
medium sized enterprises throughout Bangladesh. It will be a world – class
organization in terms of service quality and establishing relationships that
help its customers to develop and grow successfully. It will be the Bank of
choice both for its employees and its customers, the model bank in this part of
the world.
2.4
Vision
BRAC Bank will be a
unique organization in Bangladesh. It will be a knowledge-based organization
where the BRAC Bank professionals will learn continuously from their customers
and colleagues worldwide to add value. They will work as a team, stretch themselves,
innovate and break barriers to serve customers and create customer loyalty
through a value chain of responsive and professional service delivery.
Continuous improvement, problem solution, excellence in service, business
prudence, efficiency and adding value will be the operative words of the
organization.
BRAC Bank
will serve its customers with respect and will work very hard to instill a
strong customer service culture throughout the bank. It will treat its
employees with dignity and will build a company of highly qualified
professionals who have integrity and believe in the Bank’s vision and who are
committed to its success. BRAC Bank will be a socially responsible institution
that will not lend to businesses that have a detrimental impact on the environment
and people.
» 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 of
BRAC field offices for delivery 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
2.6 Core
Values -CRYSTAL
C stands for being Creative, Be a person of innovative ideas in solving
issues, thinking different ideas to reach one destination; do new associations
between existing ideas or concepts for the organization’s overall growth.
stands for being Reliable, Be worthy of reliance or trust at work so
everyone could depend
on you.
stands for remaining Youthful, Be a person of
freshness and vibrant characteristic at work. Feel young at HEART and project
enthusiasm during performing duties.
Be a person of willing to move forward and
apply conscious choice, willpower, discipline and passion at work.
stands for being Transparent, Be transparent at work at all level both
internally and externally. Show openness and honesty through communication to
bring transparency
stands for being Accountable, Be accountable for own actions and take
responsibilities for the outcome of the actions; be responsible and answerable
towards customers, organization, regulatory bodies as well as the society.
2.7
Long Term Strategy:
Summed up in
a single sentence, BRAC Bank’s long-term strategy is to go where the market
is. The SME market in Bangladesh is large. The report produced by the
Shore Bank team, (Ronald Grzywinsky, Mary Houghton and Lynn Pikholz) and the
independent consultant, Kaiser Zaman, indicates that the market size would be
over hundreds of billions of taka. He quoted:
“As a result
of the achievements of the micro-credit providers, Bangladesh now has an hour
glass shaped banking market in which credit and other limited financial
services are valuable to both very large and very small businesses and very
wealthy and very poor individuals. While there is well – known informal system
that provides credit to businesses, virtually nothing is available from either
banks or micro finance provider to the million the middle – businesses and
individual- who are severely constrained in their ability to produce and save
for lack of access to financial resources and services. Until modern,
competitive financial services are readily available – including credit in
amounts, terms and conditions that small can access, Bangladesh will not be
able to create the large middle class that is a prerequisite to social
stability.
2.8
Corporate Social Responsibility (CSR) of BRAC Bank:
Since the inception as a responsible
corporate body BRAC Bank Ltd. has undertaken various initiatives considering
the interest of customers, employees, shareholders, communities and environment.
These initiatives go beyond the statutory obligation/mandatory compliances to
voluntary activities that promote sustainable development. Corporate Social
responsibility (CSR) is a fundamental part of the way BRAC Bank does business.
It’s an opportunity to build better relationships with all stakeholders by
paying closer attention to how we fulfill our social, economic, environmental
and ethical responsibilities.
We are working towards reducing waste
and the more efficient use of resources. The second step is reducing our
indirect environmental impact by managing our investing activities. Paper
communication between the divisions/Customer centers of BRAC Bank has been
replaced with on-line communication where possible, resulting in significant reduction
in paper usage.
2.9
Management of BRAC Bank Limited
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Chairman |
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Mr. |
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Mr. Mark |
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Ms. |
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Ms |
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Mr. Shib |
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Dr. |
Director |
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Mr. Syed Mahbubur Rahman
|
Managing |
Members of BRAC Bank Limited Management Committee
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Mr. Syed
|
Managing |
||
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Mr. Rashid |
Deputy |
||
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Mr. Rais |
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Mr.
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Chief |
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Ms. |
Head of |
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Mr. Shah |
Head of
Operational Risk Management |
||
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Mr. |
Head of |
||
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Mr. Syed |
Head of |
||
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Mr. |
Head of Custodial Services Probashi Banking |
||
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Mr. Zeeshan
|
Head of |
||
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Mr. Md. |
Head of |
||
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Mr. |
Head of |
Chapter
-3
Products
and Services of BRAC Bank Ltd.
3.1
Products of BRAC Bank Limited
- Small
& Medium Enterprise (SME)
becomes one of the country’s fastest
growing banks. With 70 branches, 59 SME Sales & Service Centers, over 195
ATM’s, 429 SME Unit Offices and over 7,000 employees.
.These
CROs work for the Bank to converge clients for getting the SME loan. Once CROs
get the loan application and if it is less than 500,000 TK then zonal officer
has the authority to approve the loan. But if it is above 500,000 then the CROs send it to Head Office
for all necessary approval. After approving the loan then Asset Operation
Department starts its work.
In 2010, BBL alone distributed loans
to 67,047 Small and medium entrepreneurs’ amounting to BDT. 32,188.26 million;
in 2010, Bank also open 29 SME Service Centers.. SME
division maintains a portfolio of 259,799 small and medium Entrepreneurs with
BDT 111,917.87 million. Last year disbursed BDT 32,188.26 million to 67,047 SME
clients.
|
Deposit Prapti Loan Anonno Prothoma Trade Business Proshar Bizness Suppliers |
SME Products
SME Loan flow is shown below:
When
a customer comes to the unit office for a loan request, first he/she meets with
the customer relationship officer to discuss about the loan, which loan product
is suitable for him/her. After then the following process takes place:
B. Corporate Banking
Categories-
the facilities our corporate Division offers to our customers are mainly of
two-
Funded
Facilities
Non-Funded Facilities
Funded
Facilities:
Funded tells us that this
type of facilities allows the customer to have money ‘on his hand’ for use i.e.
he will get money as to meet his business demand. Examples are-
Working Capital Loan.
Over Draft Facility.
Term Loan.
Lease Finance.
Demand Loan.
Non-Funded
Facilities:
Non-Funded
facilities are those type of facilities where customers don’t get fund on their
hand rather get Bank’s Guarantee service to do international trading-import and
export. Letters of Credit, Bank guarantees etc. are the examples of the
non-funded facilities.
Working Process of corporate wing:
C. Retail
Banking
Retail Loans are consumers’ loan. Based on the
customer demand these loans are given. BRAC Bank has a wide range of retail
loan-
1. Car Loan. 2.
Doctor’s Loan.
3. Secured Loan/OD. 4. High Flyer Loan.
5. Top Up Loan. 6. Credit Card Loan.
7. Study Loan. 8. Teacher’s Loan.
9. Now Loan. 10.
Salary Loan.
Process Flow of Retail Loan
 |
BRAC Bank’s Retail Division is being
operated centrally. Under the Retail Banking Division all the branches, which
acts as sales & service center, are reportable to Head of Retail Banking.
Different products of Retail Banking are as follows:
Deposit Products
Lending Products
Locker Services
Remittance
Services etc.
3.2 Services of BRAC Bank Limited
Banking
Services Department under BBL Operations has been created with a vision of
providing one stop banking services to our internal & external customers by
ensuring service excellence and accelerating the efficiency through experienced
and competent human capital and using advanced technology. Under the Operations
umbrella Banking Services Department facilitates the specific services focusing
on a particular activity, eagerness to take challenges and develop expertise in
it, which in turn augment the service quality, reduce turn-around-time (TAT)
and give a competitive edge.
b) Corporate Banking
Services:
The Corporate
Banking Division has a centralized structure through on-line banking
system. Any credit facility is processed at the Corporate Banking
Division, Head Office. After sanctioning of the facility, the limit is
put online and
The customer
can enjoy the facility from any of the BRAC BANK branches.
A fully
operational commercial Bank, BRAC BANK focuses on perusing unexplored market
niches in the Small and Medium Enterprise Business, which hitherto has remained
largely untapped within the country, the Bank has provide support to more than
200000 Small and Medium Enterprise. Since inception in July 2001 the bank’s
footprint has grown to 69 branches, 59 SME Sales Center, 429 unit offices and
more than 177+ ATMs across the country.
The banks
operate under a “double bottom line” agenda where profit and social
responsibility to hand in hand as it strives towards a poverty free,
enlightened Bangladesh.
Strict
adherence to internal control guidelines and other legal and statutory
compliance are followed. The Credit approval process involves separate
Credit Division, the Managing Director and finally the Board.
Other
Departments such as Foreign Trade, Treasury, Asset Operations etc. plays the
support role for a comprehensive range of service to the Corpora
b) Other Banking Services:
BRAC BANK
provides a comprehensive range of innovative corporate financial solutions
tailored to suit each company’s needs. At the center of client’s
relationship with BRAC BANK is an experienced and professional Management team
with extensive industry knowledge. The Relationship Management team works
closely with the client to understand and solve the financial requirements of
the company. Our knowledge about various industry sectors encompasses
global issues, the dynamics of the economy’s effect on the industry and
business cycles and insight into market activity within this
industry. Following are some of the products that we offer
our corporate clients:
§ Loans
§ Short term
Loans
§ Mid Term Loans
§ Long Term Loans
§ Letter of
Credit
§ Guarantee
§ LTR
§ LBP
§ Overdraft
§ Lease
Financing, Work Order Financing, Floor Financing, Channel Financing
3.4
Achievements:
·
Fastest growing
bank in the country for the last four years
·
Leader in SME
financing through 7000 offices.
·
Biggest suit of
personal banking & SME products.
·
Large ATMs
(Automated Teller Machine) & POS (Point of Sales) network.
SME Banking Division is a business
division of BRAC Bank Limited that deals with Small and Medium sized
Entrepreneurs involved in different types of business. The loan products
offered by SME Banking Division are ANONNO, APURBO, AROGGO, Prapti current
account, DIGOON RIN, SUPPLIER FINANCE, PROTHOMA RIN, PROSHAR, BIZNESS LOAN,
TRADE PLUS and Business equity loan. The SME loan range is from BDT 3 lac to
BDT 50 lac (Funded: BDT 3 lac to BDT 50 lac), Non Funded: BDT (1 lac to BDT 30
lac). SME banking division offers Term loan, Continuous (Cash covered) loan and
Letter of Credit. Short Term: up to 9 months, Long Term: from 12 to 60 months.
If the loan amount is more than BDT 50 lac and then SME Banking refers it to
Corporate Banking another business division of BRAC Bank.
It is compulsory for a borrower to
have a current A/C either with BBL or with a correspondent bank branch if there
is no BBL branch in the locality. The City Bank Ltd, Janata Bank, Bangladesh
Krishi Bank, Pubali Bank Ltd, Agrani Bank and Rupali Bank Limited are the
correspondent banks of BRAC Bank. Bank transaction record is mandatory for
Bizness Loan & Trade Plus only.
The SME loans are usually given for
working capital finance, fixed asset finance and trade finance. Loan amount is
decided based on the fund requirement calculation, not on the basis of
collateral value. However, Lawyer’s opinion is necessary for mortgage purpose.
Registry Mortgage is necessary generally when the loan amount is BDT 10 lac or more.
Working capital financing cannot be more than 75% of the
total of the average regular receivables and average inventory. Fixed asset
finance cannot be more than 90% of the purchase price, but the debt equity
ratio in fixed assets investment in the projected year (after purchase of new
fixed assets) cannot be more than 1 (one). A customer can apply for a repeat
loan when 80% of the previous loan tenure has passed and made a satisfactory
repayment. If all installments are paid on due dates, they will also get a
concession on the existing interest rate.
Generally, SME only provides business loans in
the enterprise’s name.
However, loan can be sanctioned in the personal name of the
borrowers, if the tenant borrower cannot
obtain trade license showing his name as owner of the business due to the
conditionality imposed by the market committee/owner.
Fire insurance is mandatory to avail
a loan except for a few concerns like poultry, fishery and farming.
Our Network and Reach:
Today BRAC Bank is considered as a
fourth generation bank extending full range of banking facilities by providing
efficient, friendly, modern and fully automated online services. In 2010 30 new
SME sales and Service centers were opened at the following locations: Gouripur,
Sirajganj, Konabari, Pahartoli, Badda, Bagerhat, Bahadderhat, Swarupkathi,
Bashabo,panth, Dolaikhal, Gulistan, Hathazari, Hazaribag, Jatrabari, Shampur,
Kadamtoli, Karwanbazar,Arihazar, Magura, Mirpur-1, mohammadpur, motijeel,
Naogaon, Comilla, Netrokona, Pirojpur, Purana Palton, Bondor And Uttara.
At present SME Banking Division have
14 products among which 13 are loan products and one deposit product.
SME Credit Model:
SME credit risk management is based
on Product Program Guidelines (PPG) for each product developed from the board
approved policy. BRAC Bank Limited developed & applies in-house assessment
methodologies for evaluating the creditworthiness of the SME borrowers to
identify credit risks and establish underwriting standards.
There are 7 business wings in SME
Banking Division.
1.
General Business Unit
2.
Women Entrepreneur Cell (WEC)
3.
Large Business Unit (LBU)
4.
Manufacturing Business Unit (MBU)
5.
Supplier & Distributor Finance Unit (SDF)
6.
Commercial Credit Unit (CCU)
7.
Vehicle Financing Unit
This largest business unit of SME
Banking Division has long been providing loans to SME entrepreneurs.
Regular business wing offers varying products. SME entrepreneurs
mostly require small finance that this business unit has successfully been
offering to all level of SME borrowers irrespective of business
type. In addition to Small finance this business unit is also offering finance
to medium entrepreneurs.
Women Entrepreneurs Cell
(WEC), one of its kinds in the banking industry of Bangladesh, was launched in
2006 under SME Banking Division with an objective to offer access to formal
finance along with training and technical assistance to the women entrepreneurs
across the country.
3. Large Business Unit
(LBU)
Large Business Cell started its
journey from February 2007. The objective for this unit is to increase the
average ticket size of the overall SME portfolio and also to tap
the unexplored market.
4. Manufacturing Business Unit
(MBU)
The Manufacturing Business Unit was launched in August 2007
under SME Banking Division. The objective of launching this unit is to better
serve the manufacturing sector by providing sector-focused loan & other
services.
The Commercial Credit Unit (CCU) was
launched in October 2007 with the objective of providing financial services in
the Trade Finance sector with pre & post import facilities.
This newly formed business unit of SME
Banking is aimed at financing the commercial vehicles of SMEs. This unit will
operate in some selected areas of the country. In addition to the 7
business units there are 2 more units in SME Banking Division.
3.6 Products of SME:
Deposit Products
“Prapti
Current Account” an interest bearing current account. This account ensures
the profitable and easy transaction facilities for Businesses.
Eligibility
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Any institution can open this account in the name of |
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Opening balance only BDT. 5,000 only. |
Features
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Loan Products
Anonno Rin
This is a small-scale loan designed
to finance small scale trading, manufacturing and service ventures, especially
to aid the purchase of fixed assets, and to finance working capital.
Eligibility
· Entrepreneurs aged
between 18 to 60 years
· Entrepreneurs with
minimum 2 years experience in the same line of business
· A business which must be
a going- concern with more than 1 year in operation
Maximum
Amount
· From minimum BDT 3
lac up to maximum of BDT 10 lac
Features
· Loan without mortgage
· For excellent borrowers
who have paid or are paying in due times, we offer discounted rates
· Quick, quality banking
throughout the country
· Potential women
entrepreneurs will also get the facilities of this loan
|
|
|
Interest rate
·
17.8%
for New Loan
·
17.25%
for 1st time repeat (if applicable)
·
17.00%
for 2nd time repeat & so on (if applicable)
Loan processing Fees
·
2.5%
of base loan amount+ VAT
·
Hypothecation
on present & future assets, two personal guarantors & post dated
cheques
Prothoma
: An asset product offered to women
entrepreneurs to expand their businesses. This product’s main objective is to
help women entrepreneurs to meet their short-term cash flow shortages or bridge
the fund-flow gaps.
·
BDT
3 lac to below 10 lac
Tenure
·
EMI-12
to 36 months
·
Single
Installment- 3 to 9 months
·
15%
·
2.5%
of base loan amount+ VAT
·
Hypothecation
on present & future assets, two personal guarantors & post dated
cheques
BUSINESS LOAN
This loan facility caters cash flow
requirement of medium sized enterprises located around the unit offices which
are at proximity of the BRAC Bank Branches. To avail this loan facility healthy
banking track record is required and medium sized entrepreneurs can avail this
loan facility against 30% to 50% cash security.
·
BDT
10 lac to 50 lac
·
For
10 lac to below 20 lac – 12 to 48 months
·
For
20 lac to 50 lac – 12 to 60 months.
·
1%
of loan amount+ VAT for new loan
·
17.8%
·
BRAC
Bank FDR (50% of the loan amount for new loan & 30% for repeat loan),
Hypothecation on present & future assets, two personal guarantors &
post dated cheques
Proshar Rin
: Proshar is a loan facility for
Small and medium sized manufacturing industries located in the surrounding
areas of unit offices across the country. It is primarily meant for working
capital finance/ fixed asset purchase for the business.
·
BDT
3 lac to 30 lac
·
For
3 lac to below 10 lac -12 to 36 months For 10 lac to 15 lac-12 to 48 months
·
For
above 15 lac to 30 lac – 12 to 60 month
Loan processing Fees
·
For
3 lac to below 10 lac -2.5 % of base amount+ VAT
·
For
10 lac to 30 lac-1 % of loan amount+ VAT
·
For
3 lac to below 10 lac- 17.25% for new loan & 17% for 1st repeat & so on
(if applicable)
·
For
10 lac to 30 lac- 17%
·
For
3 lac to below 10 lac -Hypothecation on present & future
assets, two personal guarantors & post dated cheques
·
For
10 lac to 30 lac-Registry Mortgage of land property, Hypothecation on present
& future assets, two personal guarantors & post dated cheques
·
Non
Funded- BDT 1 lac to 30 lac
·
Funded
– BDT 3 lac to 30 lac
·
Maximum180
days /deal
·
Funded
-1 % of loan amount+ VAT
·
Non
Funded (PAD)- 17%
·
Funded
–17.8% (LATR, Revolving Loan, overdraft)
·
For
LATR -Hypothecation on present & future assets, personal guarantor &
post dated cheques
·
RL-
For 5 lac to below 10 lac-BRAC Bank FDR 20%, Hypothecation on present &
future assets, personal guarantor & post date d cheques
·
For
10lac to 30 lac-Registry Mortgage of land property, Hypothecation on present
& future assets, personal guarantor & post dated cheques
·
OD
– Registry Mortgage of land property, Hypothecation on present & future
assets, two personal guarantors & post dated cheques
·
Business
equity loan
·
Business Equity Loan is a loan facility
for the enlisted Suppliers of various large retailers, marketing companies,
distributors, exporters etc. This product’s main objective is to help various
Suppliers to meet their short-study cash flow shortages or bridge the fund-flow
gaps.
Eligibility
· If you are an enlisted
supplier of a corporate house with which BRAC Bank has a corporate tie- up
· Have minimum 3 years of
continuous operation
· Have 1 year continuous
relationship with the purchasing firm
Maximum
Amount
· Minimum BDT 4 lac up to
maximum BDT 30 lac
Features
· Equal monthly installment
and revolving loan facility
· 1% of loan amount as the
processing fe
·
1
to 12 months
·
Revolving
– For BDT 4 to below 10 lac -17.8%
·
For
BDT 10 to 30 lac -17.%
·
Overdraft-
For BDT 4 to below 10 lac – 17%
·
For
BDT 10 to 30 lac – 16%
Suppliers Finance
Loan a loan for various suppliers
& distributors to expand their businesses
Product
Type
|
|
Loan
Tenure
Loan
Loan
Interest Rate
|
