SME BANKING

Nowadays, the term 'SME' is much more voiced in Bangladesh that before, and the issue of sustainable growth of SMEs is at the center of the country's most national development strategies and economic plans. It has become one of the fundamental elements to reduce poverty, and improve other social indicators- with the aim of attaining Millennium Development Goals (MDGs) by 2015, and also accomplishing other Bangladesh Development Goals (BDGs). Besides, Women's participation in micro-credit programs and the ready-made garments industry bear testimony to the fact that, their involvement in the SME business can contribute significantly to the country's industrialization.

To support Small & Medium Enterprises, Standard Bank Limited has widened its network up to the rural frontiers with a country-wide reach of Branches, SME & Business Centers, Alternative Delivery Channels (ADC) and so on.

The loan facility in terms of Working Capital to meet cash requirement to ensure smooth day to day business operation for Small and Medium Enterprises (SMEs) involved in Manufacturing/Trading/Services.

1. Any justifiable working capital need for small and medium enterprise customers.
2. Facility Type -Continuous Loan, LC (Signt/DP) and
3. Loan Ceiling - Tk. 2.00 Lac to Tk. 50.00 Lac for cottage/micro/small enterprise customers and Tk. 2.00 Lac to Tk. 300.00 Lac for medium enterprise customers.
4. Loan Tenure - Continuous Loan for maximum 12 months and LC(Sight/DP)/LTR for prescribed tenure.
5. Nil margin LC facility.
6. Nominal Interest Rate.

1. Age: At least 21 years.
2. Any entrepreneur having the experience of successfully managing the business for at least two years may apply for the loan.

1. Valid trade license
2. Special license/permission (if applicable) for business operation.
3. Notarized partnership deed/registered by Sub Register Officer (in case of partnership).
4. Memorandum and Articles of Association in case of Limited Company.
5. Passport/National voter ID/ward commissioner/UP chairman certificate of the Proprietor/Partner/Directors.
6. Photo of the proprietor/Partners and guarantors.
7. Statement of all active bank loans (if any).
8. Last 12 months bank statement of transactional account.

Primary Security:
1. Hypothecation of machineries, equipment, vehicles, inventories.
2. Personal guarantee of Proprietor/Partner/Directors and their spouse.
3. 02(two) 3rd party Guarantors acceptable to the Bank and whose Net Worth must not be less than the proposed Loan amount/Loan limit.
4. Lien of cash collateral (FDR) and other encashable financial instrument.

1. Registered mortgage of property/ownership of the space/possession right purchased in Bank's name.

"SBL Babbosha Unnayon" is Collateral Free SME loan facility to augment capital base 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.

1. 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.
2. Facility Type – Term Loan/ Continuous Loan.
3. Loan Ceiling – 70% of total cash requirement [100% in case of cash collateral (FDR)/enchashable instrument] but not exceeding Tk. 5.00 Lac.
4. Loan Tenure – Maximum 36 months for Term Loan and grace period may be allowed maximum 6 months; Maximum 36 months for Continuous Loan
5. Nominal Interest Rate.

1. Age: At least 21 years.
2. Any entrepreneur having the experience of successfully managing the business for at least two years may apply for the loan.

1. Valid trade license.
2. Special license/permission (if applicable) for business operation.
3. Notarized partnership deed/registered by Sub Register Officer (in case of partnership).
4. Memorandum and Articles of Association in case of Limited Company.
5. Passport/National voter ID/ward commissioner/UP chairman certificate of the Proprietor/Partner/Directors.
6. Photo of the proprietor/Partners and guarantors.
7. Statement of all active bank loans (if any).
8. Last 12 months bank statement of transactional account.

Primary Security:
1. Hypothecation of machineries, equipment, vehicles, inventories.
2. Personal guarantee of Proprietor/Partner/Directors and their spouse.
3. 02(two) 3rd party Guarantors whose Net Worth must not be less than the proposed Loan amount/Loan limit.
4. Lien of cash collateral (FDR) and other encashable financial instrument (in any)

"SBL Babbosha Shommriddhi" is SME loan facility with Collateral to augment capital base 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.

1. 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.
2. Facility Type – Term Loan/ Continuous Loan
3. Loan Ceiling – 70% of total cash requirement [100% in case of cash collateral (FDR)/enchashable instrument]
4. Loan Tenure – Maximum 36 months for Term Loan and grace period may be allowed maximum 6 months; Maximum 36 months for Continuous Loan .
5. Nominal Interest Rate.

1. Age: At least 21 years.
2. Any Small and Medium sector enterprise (Proprietorship/ Partnership/ Private Limited company) having the experience of successfully managing the business for at least 2 (two) years may apply for the loan.

1. Valid trade license.
2. Special license/permission (if applicable) for business operation.
3. Notarized partnership deed/registered by Sub Register Officer (in case of partnership).
4. Memorandum and Articles of Association in case of Limited Company.
5. Passport/National voter ID/ward commissioner/UP chairman certificate of the Proprietor/Partner/Directors.
6. Photo of the proprietor/Partners and guarantors.
7. Statement of all active bank loans (if any).
8. Last 12 months bank statement of transactional account.

Primary Security:
1. Hypothecation of machineries, equipment, vehicles, inventories.
2. Personal guarantee of Proprietor/Partner/Directors and their spouse.
3. 02(two) 3rd party Guarantors whose Net Worth must not be less than the proposed Loan amount/Loan limit.
4. Lien of cash collateral (FDR) and other encashable financial instrument (in any)

1. Registered mortgage of property/ownership of the space/possession right purchased in Bank’s name.

"SBL Moushumi Rin" is SME loan facility with/without Collateral to create additional opportunities during different festivals and seasonal events (i.e. Eids, Pujas, Chistmas, Bengali and English New Year, etc.) for SME business to organize special business arrangement to increase sales turnover and profit.

1. To meet the cash requirement as short term financing on occasional events for special business arrangement to increase sales turnover and profit.
2. Facility Type – Short Term Loan
3. Loan Ceiling – Tk. 2.00 Lac to Tk. 20.00 Lac
4. Loan Tenure – Maximum 06 months (no grace period is allowed).
5. Nominal Interest Rate.

1. Age: At least 21 years.
2. Any entrepreneur having the experience of successfully managing the business for at least two years may apply for the loan.

1. Valid trade license
2. Special license/permission (if applicable) for business operation.
3. Notarized partnership deed/registered by Sub Register Officer (in case of partnership).
4. Memorandum and Articles of Association in case of Limited Company.
5. Passport/National voter ID/ward commissioner/UP chairman certificate of the Proprietor/Partner/Directors.
6. Photo of the proprietor/Partners and guarantors.
7. Statement of all active bank loans (if any).
8. Last 12 months bank statement of transactional account.

Primary Security:
1. Hypothecation of machineries, equipment, vehicles, inventories.
2. Personal guarantee of Proprietor/Partner/Directors and their spouse.
3. 02(two) 3rd party Guarantors whose Net Worth must not be less than the proposed Loan amount/Loan limit.
Collateral (not compulsory for credit facility up to Tk. 5.00 Lac):
4. Registered mortgage of property/ownership of the space/possession right purchased in Bank’s name.
5. Lien of cash collateral (FDR) and other encashable financial instrument (in any)

To contribute in public and private developmental project, SBL offers "SBL Karma Uddogh" loan facility with/without collateral to Sole Proprietorship Firms, Partnership Firms, and Private Limited Companies under SME business to meet revolving cash requirement for completion of the project.

1. To meet revolving cash requirement for completion of public and private developmental project against particular development project (Commercial)/work order/assignment offered by Govt. and semi-govt. organization.
2. Facility Type – Continuous Loan [SOD(general)/SOD(WO)/SOD(FO)] and Term Loan.
3. Loan Ceiling – Tk. 0.50 Lac to Tk. 20.00 Lac.
4. Loan Tenure – Maximum 12 months with renewal option for Continuous Loan and Maximum 60 months for Term Loan.
5. Nominal Interest Rate.

1. Age: At least 21 years.
2. Any Small and Medium sector enterprise (Proprietorship/ Partnership/ Private Limited company) having the experience of successfully completion of different projects for at least 2 (two) years may apply for the loan.

1. Valid trade license
2. Special license/permission (if applicable) for business operation.
3. Notarized partnership deed/registered by Sub Register Officer (in case of partnership).
4. Memorandum and Articles of Association in case of Limited Company.
5. Passport/National voter ID/ward commissioner/UP chairman certificate of the Proprietor/Partner/Directors.
6. Photo of the proprietor/Partners and guarantors.
7. Statement of all active bank loans (if any).
8. Last 12 months bank statement of transactional account.

Primary Security:
1. Letter of Acceptance of Assignment by the work giving authority ( for work order).
2. Personal guarantee of Proprietor/Partner/Directors and their spouse.
3. 02(two) 3rd party Guarantors whose Net Worth must not be less than the proposed Loan amount/Loan limit.
Collateral (not compulsory for credit facility up to Tk. 5.00 Lac):
4. Registered mortgage of property/ownership of the space/possession right purchased in Bank’s name.
5. Lien of cash collateral (FDR) and other encashable financial instrument (in any)

As an encouraging gesture, SBL offers “SBL Nari Anuprerona-Women Entrepreneurs’ Loan” with/without collateral to Sole Proprietorship/ Partnership/ Private Limited company (at least 51% shares to be hold) operated by women entrepreneurs to flourish their business.

1. Any justifiable business purpose for Sole Proprietorship/ Partnership/ Private Limited company (at least 51% shares to be hold) operated by women entrepreneur.
2. Facility Type – Continuous Loan/Term Loan
3. Loan Ceiling – Tk. 0.50 Lac to Tk. 50.00 Lac
4. Loan Tenure – Maximum 12 months with renewal option for Continuous Loan and Maximum 60 months for Term Loan.
5. Interest Rate- 10.00% p.a.

1. Age: At least 21 years.
2. Any entrepreneur having the experience of successfully managing the business for at least two years may apply for the loan.

1. Valid trade license
2. Special license/permission (if applicable) for business operation.
3. Notarized partnership deed/registered by Sub Register Officer (in case of partnership).
4. Memorandum and Articles of Association in case of Limited Company.
5. Passport/National voter ID/ward commissioner/UP chairman certificate of the Proprietor/Partner/Directors.
6. Photo of the proprietor/Partners and guarantors.
7. Statement of all active bank loans (if any).
8. Last 12 months bank statement of transactional account.

Primary Security:
1. Hypothecation of machineries, equipment, vehicles, inventories.
2. Personal guarantee of Proprietor/Partner/Directors and their spouse.
3. 02(two) 3rd party Guarantors whose Net Worth must not be less than the proposed Loan amount/Loan limit.
Collateral (not compulsory for credit facility up to Tk. 25.00 Lac):
4. Registered mortgage of property/ownership of the space/possession right purchased in Bank’s name.
5. Lien of cash collateral (FDR) and other encashable financial instrument (in any)

To create new entrepreneur and self-employment, Standard Bank Limited (SBL) has introduced investment facility as “Startup Financing” to the SME entrepreneurs who are in the growth stages of their business operation and want to develop new (innovative) product or service supported by Information Technology.

1. Mode of Investment:
   1. Hire Purchase under Shirkatul Melk (HPSM) Term Finance- for Fixed Asset Financing.
   2. BAIM (Term) - for Working Capital Financing.
2. Investment Ceiling: Maximum BDT 1.00 Crore.
3. Investment equity: 60: 40 (Maximum).
4. Approved facility cannot be disbursed at a time. It shall be released at minimum 03 (three) Installments based on positive report on Project development.
5. Rate of return to be realized from Client: 4% Simple profit rate/rent Per Annum or as per Bangladesh Bank’s instruction time to time.
6. Repayment Tenure:
   1. HPSM: 05 (five) years Maximum with Equal Installment.
   2. BAIM (Term): 01 (one) year with Equal Installment.
7. Grace Period: Maximum 12 (twelve) Months based on justification in case of Fixed Assets Financing by way of HPSM.

1. Nationality: Bangladeshi.
2. Age: 21 to 45 years.
3. Establishment of Company: Proprietorship/Partnership/Limited Company Registered in BD.
4. Training: Entrepreneurs shall have successful training certificate on entrepreneur development, conducting business, marketing etc. or other technical subject (production, processing, machinery repair etc.) from any Government or Government listed Training Institution.
5. Length of Business Experience of Key Person: Minimum 02 (two) Years.
6. Must have clean CIB report and no Default History.
7. Client must be engaged with proposed endeavor/project all time regularly.
8. Present/Prospective Cash flow to be sufficient enough to pay Installment in due time. IRM will analyze it based on Standard Investment Norm and BB Guideline.

1. Profile of Startup Project.
2. Valid trade license of applicant.
3. Copy of Voter ID card/Passport/driving license/ward commissioner/UP Chairman Certificate of the proprietor/partners/ Chairman or Managing Director for the purpose of identification only. It must be verified by Branch.
4. Financial Statements (Actual/ Projected where applicable).
5. Registered or Notarized Partnership Deed (In case of Partnership Company) with Registration in RJSC and Farm.
6. Memorandum and Articles of Association along with Certificate of Incorporation (In case of limited liability company) with original Board Resolution to borrow.
7. Utility bill (gas/electricity) of present/permanent /Office address.
8. Clean CIB report.
9. Tax clearance document or acknowledgement slip of return submission for last assessment year as per Government Rules.
10. Others as applicable.

Primary Security:
1. Hypothecation of Procured Asset (Fixed Asset. Current Assets or both as applicable).
2. Hypothecation of Bills Receivables (If any).

Collateral Security:
1. Preferable but not mandatory.

Support Security:
1. 01 (one) Cheque covering entire limit and Cheques equaling number of installments.
2. Pledge of Original Educational/Vocational Certificate.
3. Fresh set of usual Charge Documents.
4. Personal Guarantee of the Proprietor, All Directors of LTD Company /All Partners in case of Partner Ship Company along with personal Guarantee of Spouse (In case of unmarried, Guarantee of Father/Mother/Brother/Sister/Successor).
5. 3 rd Party Guarantee (preferable) of a Business Person having business experience of minimum 02 (two) year supported by Valid and Up to date Trade License or Guarantee of a Service person (Bankers/ Government Service/ Multinational Company/ Reputed Corporate Company/ Reputed Educational Institution).
6. Others as and when required.