Purpose

• To purchase equipment/material/utensils/crockery, to repair existing equipment, to purchase tools/spares, to acquire/repair/renovate business premises, to use as working capital.

Eligibility

• Any adult citizen of Bangladesh, who completed a degree/diploma/certificate course aided or recognized by the Government, or have proven experience record in relevant field, or who, in the opinion of the bank are already involved in such business or are technically qualified/skilled in the field i.e. catering, supply of food, restaurant business, catering event management etc. 

Documents Required

• Valid trade license from competent authority and all other documents on identification of the entrepreneur..

• Business planning along with projection of investment to be submitted by the applicant.

Loan Category

• Term Loan, Cash Credit.

Amount

• Tk. 10,000.00 – Tk. 20.00 Lac

Margin

• 25% of initial projected investment.

Rate of Interest

• 09.00% p.a. or as changed by the Bank Management from time to time.

Security

• Hypothecation/Mortgage of the goods purchased/created with the amount of loan.

• Collateral security by way of immovable properties or acceptable third party guarantee.

• Personal guarantee of spouse (s), parents, income generating adult son/daughter, brother/sister (minimum two).

Repayment Period

• Term Loan= Maximum 3 years (Subject to estimation of payback period).

• Cash Credit= 1 year (renewable).

Penalty

• In case of delayed payment, penalty of 2% on the overdue amount for the overdue period shall be charged.

Approval Authority

• Head Office Management/Concerned Division.