Small & Medium Enterprise (SME)
Bangladesh is a densely populated country. Job opportunity here is very scanty; Unemployment rate is approximately 40%. Population below poverty line is 36%. Therefore, it is the prime concern for the nation to generate income through creation of job opportunity & employment. Creation of job opportunity at large scale by us is not possible. What can be done better is to help self-employment through financial support. There are many small and medium entrepreneurs in the country that have innovative idea, spirit and potentiality to do something productive for local consumers as well as export abroad.
Objective 0f SME Loan:
To provide credit facilities to the small and medium size entrepreneurs located in Urban & Sub-urban areas and easily accessible by our Branches.
To encourage the new and educated young entrepreneurs to undertake productive venture and demonstrate their creativity and thereby participate in the national development. To flow credit for creation of employment and generation of income on a sustainable basis through development of small & medium enterprises.
To assist potential entrepreneurs to take part in economic activities so that they can improve their living standard.
To reduce dependence on money lenders;
To make the small & medium enterprises self– reliant;
To develop saving habit and making acquaintance with banking facilities.
To inspire for undertaking small projects for creation employment through income generating activities.
Concepts:
Small Enterprise
Small Enterprise refers to those enterprises: -
Where goods are produced, recycled, repaired or traded in traditional way;
Where total bank investment is limited to Tk.250,000;
Where 10 or less workers are engaged on wages or commission basis;
Medium Enterprise
Medium Enterprise refers to those enterprises:-
Where goods are produced, recycled, repaired or traded applying some capital machinery;
Where 20 or less people are engaged on wages or commission basis;
Where total bank investment does not exceed Tk.75, 00,000.
The net fixed assets (excluding land and buildings) of borrowers may not exceed Tk. equivalent of US $250,000.
Selection Procedure of SME Loan:
Ø CONSIDERING FACTORS FOR ENTERPRISE SELECTION
The success of SME will largely depend on the selection of a business and the man behind it. In terms of the business (enterprise), the following attributes should be sought:
1. The business must be in operation for at least two year.
2. The business should be legally registered, i.e. must have valid license of two years old, income tax or VAT registration, whatever applicable.
3. The business should be involved in legal trade, i.e. smuggling will not be allowed or socially unacceptable business will not be entertained.
4. The business must have a defined market with a clear potential for growth.
5. The business must be located ideally close to the market and the source of its raw materials/supplies. It should have access to all the utilities, skilled manpower that are required.
6. Any risk assessed by the management in turn will become a credit risk for the Bank; so effort should be made to understand the risks faced by the business.
Ø CONSIDER FACTORS FOR ENTERPRENEUR SELECTION CRITERIA
In order to understand the capability of the management behind the business, the following should be assessed:
1. Must be literate.
The entrepreneur should be physically able and in good health, preferably
2. between age 21-60. If he is an elderly person closer to 60, it should be seen what the succession process will be and whether it is clearly defined or not.
3. The entrepreneur must have the necessary technical skills to run the business, i.e. academic background or vocational training, relevant work experience in another institution or years of experience in this line of business.
4. the entrepreneur must have acceptable social standing in the community (people should speak highly of him), he should possess a high level of integrity (does not cheat anyone, generally helps people) and morally sound (participants in community building)
5. The entrepreneur must possess a high level of commitment and enthusiasm and should demonstrate that he is in control of his business (confidently replies to all queries) and has the ability to take up new and fresh challenges to take the business forward.
6. Suppliers or creditors should corroborate that he pays on time and genial in nature.
7. Clear-cut indication of sources of income and reasonable ability and intention to save.
Ø CONSIDERING FACTORS FOR GUARANTOR SELECTION
Equally important is the selection of a Guarantor. The same attributes applicable for an Entrepreneur are applicable to a Guarantor. In addition he should possess the following:
1. The guarantor should be physically able and in good health, preferably between age of 18 -60.
2. the Guarantor must have the ability to repay the entire loan and is economically solvent (check his net worth)
3. The Guarantor should be aware about all the aspects of SME loan and his responsibility.
Govt. and semi-govt. officials can be selected as a Guarantor such as
4. schoolteachers, college teachers, doctors etc.
5. The Guarantor should know the entrepreneur reasonably well and should preferably live in the same community.
6. The value of assets of the guarantor must at least be 125% of the loan amount.
When a person will be a guarantor of a loan of SME, Prime Bank, she/he will not permitted to take loan from this department; a person cannot be guarantor for more than one loan of his department.
Ø Sahaj Rin (Collateral Free Loan)
Sahaj Rin provides you an easy to access loan facility to successfully grow your small & medium enterprise business.
Ø Sampad Rin (Capital Loan)
Sampad Rin offers you the loan facility to augment capital base for your business expansion, purchase of new business space or expansion of existing outlets and capital machineries and also to purchase light or heavy vehicles for business use.
Key Features Loan facility for business expansion, purchase of new business space or expansion of existing outlets and capital machineries and also to purchase light or heavy vehicles for business use.
Ø Chalti Rin (Working Capital Loan)
Chalti Rin offers you the loan facility to increase the working capital base by financing day to day business of your Small and Medium Enterprise (SME) business.
Ø Moushami Rin (Seasonal Loan)
Moushami Rin offers you the loan facility to grab the additional opportunities in various festivals and seasonal events (i.e. Eids, Pujas, Christmas, Bengali and English New Year etc.) by organizing special business arrangements to increase sales and profit for your.
Ø Digun Rin (Double Loan)
Prime Bank's Digun Rin helps you to avoid encashing your long held saving and provide you the required capital for your business operation. Under this SME product, if you offer any encashable security i.e. FDR, you will be entitled to receive double amount of the value of security provided.
Ø Anchol (Women Entrepreneurs' Loan)
Anchol is the credit facility for the women entrepreneurs to expand and operate their businesses at desired level.
Objective 0f SME Loan:
To provide credit facilities to the small and medium size entrepreneurs located in Urban & Sub-urban areas and easily accessible by our Branches.
To encourage the new and educated young entrepreneurs to undertake productive venture and demonstrate their creativity and thereby participate in the national development. To flow credit for creation of employment and generation of income on a sustainable basis through development of small & medium enterprises.
To assist potential entrepreneurs to take part in economic activities so that they can improve their living standard.
To reduce dependence on money lenders;
To make the small & medium enterprises self– reliant;
To develop saving habit and making acquaintance with banking facilities.
To inspire for undertaking small projects for creation employment through income generating activities.
Concepts:
Small Enterprise
Small Enterprise refers to those enterprises: -
Where goods are produced, recycled, repaired or traded in traditional way;
Where total bank investment is limited to Tk.250,000;
Where 10 or less workers are engaged on wages or commission basis;
Medium Enterprise
Medium Enterprise refers to those enterprises:-
Where goods are produced, recycled, repaired or traded applying some capital machinery;
Where 20 or less people are engaged on wages or commission basis;
Where total bank investment does not exceed Tk.75, 00,000.
The net fixed assets (excluding land and buildings) of borrowers may not exceed Tk. equivalent of US $250,000.
Selection Procedure of SME Loan:
Ø CONSIDERING FACTORS FOR ENTERPRISE SELECTION
The success of SME will largely depend on the selection of a business and the man behind it. In terms of the business (enterprise), the following attributes should be sought:
1. The business must be in operation for at least two year.
2. The business should be legally registered, i.e. must have valid license of two years old, income tax or VAT registration, whatever applicable.
3. The business should be involved in legal trade, i.e. smuggling will not be allowed or socially unacceptable business will not be entertained.
4. The business must have a defined market with a clear potential for growth.
5. The business must be located ideally close to the market and the source of its raw materials/supplies. It should have access to all the utilities, skilled manpower that are required.
6. Any risk assessed by the management in turn will become a credit risk for the Bank; so effort should be made to understand the risks faced by the business.
Ø CONSIDER FACTORS FOR ENTERPRENEUR SELECTION CRITERIA
In order to understand the capability of the management behind the business, the following should be assessed:
1. Must be literate.
The entrepreneur should be physically able and in good health, preferably
2. between age 21-60. If he is an elderly person closer to 60, it should be seen what the succession process will be and whether it is clearly defined or not.
3. The entrepreneur must have the necessary technical skills to run the business, i.e. academic background or vocational training, relevant work experience in another institution or years of experience in this line of business.
4. the entrepreneur must have acceptable social standing in the community (people should speak highly of him), he should possess a high level of integrity (does not cheat anyone, generally helps people) and morally sound (participants in community building)
5. The entrepreneur must possess a high level of commitment and enthusiasm and should demonstrate that he is in control of his business (confidently replies to all queries) and has the ability to take up new and fresh challenges to take the business forward.
6. Suppliers or creditors should corroborate that he pays on time and genial in nature.
7. Clear-cut indication of sources of income and reasonable ability and intention to save.
Ø CONSIDERING FACTORS FOR GUARANTOR SELECTION
Equally important is the selection of a Guarantor. The same attributes applicable for an Entrepreneur are applicable to a Guarantor. In addition he should possess the following:
1. The guarantor should be physically able and in good health, preferably between age of 18 -60.
2. the Guarantor must have the ability to repay the entire loan and is economically solvent (check his net worth)
3. The Guarantor should be aware about all the aspects of SME loan and his responsibility.
Govt. and semi-govt. officials can be selected as a Guarantor such as
4. schoolteachers, college teachers, doctors etc.
5. The Guarantor should know the entrepreneur reasonably well and should preferably live in the same community.
6. The value of assets of the guarantor must at least be 125% of the loan amount.
When a person will be a guarantor of a loan of SME, Prime Bank, she/he will not permitted to take loan from this department; a person cannot be guarantor for more than one loan of his department.
Ø Sahaj Rin (Collateral Free Loan)
Sahaj Rin provides you an easy to access loan facility to successfully grow your small & medium enterprise business.
Ø Sampad Rin (Capital Loan)
Sampad Rin offers you the loan facility to augment capital base for your business expansion, purchase of new business space or expansion of existing outlets and capital machineries and also to purchase light or heavy vehicles for business use.
Key Features Loan facility for business expansion, purchase of new business space or expansion of existing outlets and capital machineries and also to purchase light or heavy vehicles for business use.
Ø Chalti Rin (Working Capital Loan)
Chalti Rin offers you the loan facility to increase the working capital base by financing day to day business of your Small and Medium Enterprise (SME) business.
Ø Moushami Rin (Seasonal Loan)
Moushami Rin offers you the loan facility to grab the additional opportunities in various festivals and seasonal events (i.e. Eids, Pujas, Christmas, Bengali and English New Year etc.) by organizing special business arrangements to increase sales and profit for your.
Ø Digun Rin (Double Loan)
Prime Bank's Digun Rin helps you to avoid encashing your long held saving and provide you the required capital for your business operation. Under this SME product, if you offer any encashable security i.e. FDR, you will be entitled to receive double amount of the value of security provided.
Ø Anchol (Women Entrepreneurs' Loan)
Anchol is the credit facility for the women entrepreneurs to expand and operate their businesses at desired level.
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