SMALL & MEDIUM ENTERPRISES (SME)

Acceptable Entrepreneur:

  • Entrepreneurs must be Bangladesh citizen.
  • Age must be above 18 years.
  • The entrepreneur should have related professional experience, good managerial ability, adequate capital, financial solvency, good repayment behavior, technical & marketing related knowledge, training.
  • The entrepreneur should have capability of utilization and repayment of loan.
  • Must have acceptable CIB report from Bangladesh Bank.
  • Defaulters of any bank or financial institution are not considered under this lending program.

Credit Duration: :

  • Short term loan (up to 12 months).
  • Medium term loan of 4 years duration including six months grace period. Total amount with interest to be refunded in seven installments.
  • Loans are renewable given satisfactory dealing.

Credit Limit:

  • :: Small Industry: Tk 2.00 lac to TK 50.00 lac.
  • :: Medium Industry: Tk 51 lac to TK 1000.00 lac.
  • :: Cash Credit: Maximum 100% of current capital or 75% of total inventory and receivables.

Debt-Equity Ratio:

  • From TK. 2.00 lac to TK. 10.00 lac - 50:50
  • From TK. 10.00 lac to TK. 1000.00 lac - 60:40
  • The entrepreneurs putting high equity are preferred.

Guarantee:

For SME credit above TK. 50,000 collateral security should be taken covering the loan amount.


Rate of Interest:

  • Small Industry: 13%
  • Medium Industry: 13%
  • Woman Entrepreneurs : 12%.

Rate of interest varies according to Bank’s policy.


Approved SME Credit Sector:

According to SME development policy -2005 of Ministry of Industry, the following sectors are selected for targeted development:

  • Software Development.
  • Agro-processing/Agri-business/plantation agriculture/tissue culture.
  • Leather Goods.
  • Health services and Diagnostics.

Besides Government booster sectors the following sectors are selected for SME by RAKUB:

  • 01. Meat (Cow, buffalo, goat, lamb, hen etc.) production, processing and marketing.
  • 02. Milk (butter, cream, pasteurized milk) production, processing and marketing.
  • 03. Tea production and processing.
  • 04. Dairy and poultry feed processing.
  • 05. Rubber production and marketing.
  • 06. Agriculture related instrument and irrigation equipment making and marketing.
  • 07. Iodized salt processing, packing & marketing.
  • 08. Chira & Muri’ processing and marketing.
  • 09. Wood and wood-alternative furniture making and marketing·
  • 10. Ice factory.
  • 11. Herbal cosmetics making.
  • 12. Paddy processing, rice mill (non-automatic).
  • 13. Knitting, hosiery garments, spinning, printing, finishing etc.
  • 14. Small sugar mills.
  • 15. Silk cultivation and production.
  • 16. Shrimp and fish cultivation.

Agriculture based food processing:

  • Fruit based food processing, preservation and marketing.
  • Bread, biscuit, vermicelli (semai), noodle, ‘chanachur’, French fry, popcorn, baby food etc. processing.
  • Juice, jam, jelly, sauce, pickles etc. making and marketing.
  • Spice processing
  • Oil mill.
  • Dehydrated fruit canning, packaging, preservation and marketing.