Credit policy :
Main Characteristics of loan disbursement policy are stated below :
A. Eligibility for Loan/Credit facility :
i. The applicant’s age should be generally from 18 years to 40 years (Age limit : 18-45 years); but Age limit is flexible incase of old loanee of the bank.
ii. The applicant should be unemployed/Quasi-unemployed.
iii. Ability to operate the Project/Business organization.
iv. Must have experience & training in operating the proposed project/ business organization.
v. Should not be the loan defaulter as declared by any other Bank/Financial institute /NGO.
B. Guarantor’s Eligibility :
i) Being able to pay the loan ; Father/Mother/Husband/Wife of the applicant may become the Guarantor of the loan. Besides this, being able to pay the loan a person who lives permanently in the project area or who has house & land property with in the project area may also become the Guarantor.
ii) Highestly a person can become the Guarantor for two loanee/one group.
iii) A person serving in Govt/Semi-Govt/Autonomous Organization may become the Guarantor as per rules set out by that organization.
C. Non- encumbrance Certificate :
The entrepreneur/Guarantor shall have to submit Non-Encumbrance Certificate (NEC) issued by the relevant Sub-Register for loan limit above Tk= 5.00 Lacs.
D. Selection of borrower/entrepreneur :
Criteria listed below are usually followed to select a borrower/entrepreneur :
i) An enthusiastic person desirous for loan among the Youths (Male & Female) trained from the Directorate of Youth development.
ii) A person, who achieved/secured training form various Govt/Govt’s approved private organizations.
iii) An enthusiastic person within the jurisdiction area of the branch. Who comes to seek loan in response to the local advertisement.
iv) A person, who is familiar to the present entrepreneur/Loanee of the Bank.
v) Self- initiated person who comes to seek loan.
vi) Persons selected by the field workers of the Bank during their tour in the assigned area.
E. Application & fees :
The applicant should have to apply in the prescribed form for loan supplied by the bank in free of cost. No need to pay any sort of Fees at the time of submission of the loan application.
F. Scope of loan :
Non-proscribed & commercially viable/ productive/ Commercial/Service oriented any type of Economic activities may be regarded as head of loan.
G. Rate of Interest :
i. 12 % simple interest rate in commercial sector
ii. 10 % simple interest rate in productive & service oriented sector.
H. Limit of Credit facility/Loan limit :
i. Highest Tk. = 5.00 lac in case of person ;
ii. Highest Tk. = 25.00 Lac in case of group.
I. Security of Loan :
i. Personal Guarantee against loan limit upto Tk. 50,000/-
ii. In addition to personal Guarantee equitable Mortgage (deposition of Title Deed in the Bank) against loan limit Tk. 50,001/- - 5.00 lac.
iii. Registered Mortgage against loan limit above Tk. 5.00 lac.
J. Tenure of Loan : Highest 05 (five) years.
K. Weekly Savings :
i. The Loanee under the category of loan limit upto Tk. 50,000/- shall have to deposit at least Tk. 10/- per week ;
ii. the loanee under the category of loan limit from Tk. 50,000/- to 1.00 lac. shall have to deposit at least Tk. 20/- per week.
iii. The loanee under the category of loan limit above Tk. 1.00 lac shall have to deposit at least Tk. 40/- per week.
L. Loan sanctioning Authority :
i. Branch Manager at Upazilla Level : upto Tk. 40,000/-
ii. Branch Manager at District Level: upto Tk. 50,000/-
iii. Head office : Above Tk. 50,000/-
Special Credit Programmes :
The following welfare oriented special credit Programmes of the Government are being implemented by this Bank-
(a) Programme for eradication of Hazardous Child Labour in Bangladesh (EHCLB) is being launched by this bank under the patronage of the Ministry of labour & employment. Mean While, the Bank has provided credit facilities without security to the parents of 5000 Child-labour.
(b) With a view to revamp & uplift the economic condition of the country, the bank under the guidance of the Ministry of Finance is executing the credit Programme to assist the entrepreneurs for the development of Agro-based industries.
(c) Under the Patronage of the Ministry of Labour & employment this Bank is providing credit facilities without security among the self-Retired/retrenched workers & employees of industries & factories for their Self-employment.