SMALL & MEDIUM ENTERPRISES (SME)
- 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.
- :: 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.
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.
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.