CMSME loan product for New and Innovative entrepreneurs. It is designed in line with Bangladesh Bank SMESPD Circular No – 04, Dt: Marche 29, 2021. The purpose of the product is financing the prospective and innovative entrepreneurs for the purpose of marketization of their product associated with Service/Processing/Technological innovation and development.
Features:
- Purpose: To finance the prospective and innovative entrepreneurs for the purpose of marketization of their product associated with Service/Processing/Technological innovation and development.
- To start a new innovative business.
- To acquire fixed assets.
- Expansion of innovative business & development.
- Working Capital
- Facility Type: Term Loan
- Loan Tenor: Maximum 60 Months including Grace period of maximum 12 months depending on the nature of business and banker customer relationship.
- Loan Amount: Maximum BDT 100.00 Lac
- Interest Rate: @4% , if refinance is available from Bangladesh Bank, otherwise as advised by Head Office from time to time.
- Security/ Collateral:
- Hypothecation of proposed business stock, receivables machineries or equipment’s.
- First party and 3rd party guarantee.
- The client must deposit the bank his/her original certificate of academic qualification/Technical certificate to be verified online by the branch.
- For those candidates who are not academically educated but have undergone hands-on training or have acquired skills through employment in the respective organization, it is important to submit the work experience certificate from the concerned organizations.
- Insurance Coverage (if required).
- Planning Details & Cost Details: The Customer write a concept paper on his business plan/initiative with sufficient important business information such as current market demand of his product, possibility of getting success. Listing out of all the instruments, raw materials and accessories which are needed at business starting time. Entrepreneur will provide total cost of his planned business
- Project Establishment Undertaking: Customer will provide an undertaking to the effect that the loan will be utilized in his committed business initiative and will not divert the fund to any other purposes.
- Guarantor: Minimum 02 Guarantors are required:
- Family/First Party Guarantor
- Strong 3rd Party Guarantor.
Qualification:
- Business Owner with existing secured loan facility, with or without high CIB implications.
- Landlord of proposed business premises/ Go-down / Factory
- Prominent Business Owner/landlord of surrounding market or locality.
- Gov’t Service holder.
- Bank employee or Service Holder with required net worth.
- Respectable/Influential person who has the ability to persuade customer.
- Any other person that seems appropriate by business & credit.
- Age of guarantor: 21-60 years at the time of application; but in case of family guarantor (s) this age limit can be relaxed
- Entrepreneur’s proposed initiative should be innovative based on new ideas.
- The applicant should have successfully completed following general/technical trainings from any approved organizations/institutions:
- Entrepreneurship Development
- Business Management
- Marketing
- Technical Training:
- Product Manufacturing
- Product Processing
- Repairing of Equipment etc.
- If the entrepreneur does not have institutional or technical training but possessed practical knowledge/ experience/skills to run a new business. Upon verifying and scrutinizing of documents, bank may provide Start-up loan. In this case, supporting documents of concerned work, jobs or experiences need to be submitted.
- The proposed entrepreneur will have to give a written undertaking to the effect that he/she will have full time engagement with the business.
- Clean CIB report.
- If a customer is enjoying this facility from any other banks/NBFIs, he will not be eligible for Start-up loan.
Age Limit: 21-45 years at the time of loan application.
Authentication of work experience:
If a person has learned practical work for at least two years in a Technical Institute, such as motor parts mechanic, vehicle workshop or garage, electronics/electrical/technological works etc. certificate can be obtained from concerned institutions. For any other technical practical experience, certificate from concerned organization /company is required.
- Valid Updated Trade License/ Partnership Deed/ Certificate of Incorporation/ MOA.
- National ID/Smart Card
- TIN/VAT Certificate
- Business related others license (Drug, Pesticide, Explosive, fire, korat kall, DC office etc.)
- Bank Statement
- Company Seal
- Photograph
- Updated CIB
- Any other Documents (If required).