Brac Bank SME Loan Experience

We were given an assignment on SME banking and its conditions. And to conduct this we had to choose a bank and we chose Brac bank. For that reason we went to the closest sme unit office of the Brac bank limited in Banani. At first we informed them that we came here to collect information regarding their SME loan products, SME regulations etc. They did not ask any more questions. They were very friendly. They simply said that whatever information you need just ask for it. We will try our level best to give you the information. As we are students, we were thinking if they will provide us any information or not. But our views changed by going to their office. We asked lot of questions regarding SME loans regulations and also the conditions of SME loans they provide. They answered all the questions we asked. We asked for the brochure of SME banking products and without hesitation they gave us the brochures. These brochures are really helpful. They contain all the information of different SME products and conditions regarding loans. The people working in Brac bank SME unit office are friendly and helpful. They are ready to help. Whatever information required, they will provide them instantly. From our experience we can tell that people will be served here instantly and will get service. We were not the potential customer but the way they behaved with us is great. Customers seek for this kind of service from a bank. Also, this kind of service brings new customers for a bank. We had a great experience doing this assignment. We got lot of information regarding SME banking and its regulations, which were

unknown to us before. It helped us to know something about SME banking in practical. We think it will help us in future if any of us want to start small business in future.

Brac Bank- SME Banking

Brac Bank started giving SME loans from 2002. It is one of the youngest banks in the country and also leading SME loan provider in the country. Brack Bank is largest in the country and 4th largest in the world in SME banking. They have 421 SME unit offices all over the country. Brac bank has disbursed 14500+ core loans in SME only. They have more than 3.65 lac SME customers. 50% of the total loan portfolio of Brac bank is always for SME. Brac bank offers Loan products and Deposit products in SME banking service. Loan service includes Anonno Rin Apurbo Rin Prothoma Rin Durjoy Shomriddhi Rin Shompod Rin Shokti Rin

Deposit products include Prapti Current Account Prachurjo Fixed Deposit Shonchoy SME Deposit

1. Anonno Rin: This loan scheme is given to Small sized businesses (Production, Trading, Service, Agro based products and others) In this scheme no security is required. Moreover there is easy installment and easy loan processing services. People from 18-60 years age are eligible for this loan. Businesses having valid trade license, which has been operating at least 3 or more years are eligible. Interest rate and tenure is 24% p.a. Loan amount is BDT 3 Lac to 10 Lac. Also, sole proprietorship, partnership and private limited company can apply for this loan. 2. Apurbo Rin: In this scheme one can take 10-50 Lac BDT loan against their Registered Mortgage Hassel free process and also easy installments or over-draft/CC features. Limited documents needed. People who have land or assets and also who have Businesses with 3 years or more trade License. 3. Prothoma Rin: This scheme is exclusive for Women who are operating SME businesses. Businesses with Minimum 2 years of experience with valid Trade license are eligible Loan amount is BDT 3-10 Lac. and can repay the loan in the time that suits the owner. As low as 10% interest. No security required

4. Durjoy: In this loan people can take 3 Lac to 25 Lac BDT without any kind of security. Any kind of business having valid Trade license and also operating for at least 3 years are eligible for this loan. Easy installments up to 5 years and convenient interest rates. 1 year bank statement is required 5. Shomriddhi Rin: Any kind of business having valid trade license and operating for 3 years or more in the business which can be sole proprietorship, partnership or private limited company. To meet import-export related expenses, post import expenses, tax/duty payment, local bill purchase and working capital, it provides loan BDT 1 Lac to BDT 20 million. LC and LTR, revolving loan, overdraft and also local bill discounting facility. Easy installments and convenient interest rates. Loan payment facility up to 180 days. 6. Shokti Rin: Loan against fixed deposit or partial security. At least 1 years Bank statement with sole proprietorship, partnership or private limited company are eligible. Business loan under which one can avail BDT 1 million to BDT 10 million to meet any kind of business needs.

 Companies with valid trade license of 3 years or more are eligible for this loan. Deposit Products: 1. Prapti Current Account: Any kind of organization (such as sole proprietorship, partnership, private limited company, educational institution, NGO/Project, Co-operative society and so forth) 4% interest on current balance. 24 hour withdrawal service. One can open this account by going to SME office with only 5,000 BDT. 2. Prachurjo: Fixed deposit for small and medium businesses. With a minimum 50,000 TK, any
business enterprise having valid trade license can open this account.

Sole proprietorship, partnership and private limited companies are eligible. Small
and medium typed businesses (Educational institution, NGO and Co-operative society and others) are eligible too.

Tenure is minimum 1 month and maximum 36 months No fees except govt excise / duty on interest earned, Interest is applicable on
maturity. No pre-encashment fees.

3. Shonchoy SME deposit: It will allow organizations to save on a monthly basis as per organizations
requirement and get a handsome return at maturity.

Any range of monthly contribution options for both monthly installment size and
maturity, starting from as low as BDT 500 to any multiple of it as per organization.

Tenor from 1 year to 10 years 95% Secured Over Draft facility on the deposited amount. No account maintenance
fee.

Loan Process:
Customer Relation Officer(CRO) helps a customer to choose a scheme which best suits their financial condition. Then the CRO collects necessary documents from the customer, consolidates the information and after ensuring everything is perfect prepares Loan Application Proposal (LAP) and passes it to Zonal manager. Zonal manager visits the business and after final check, forwards it to the Credit Risk Management department. The credit analyst in the SME wing visits the business and analyzes the loan proposal. Also makes an assessment on customers ability to repay the loan and if the business can be financed. The origination department verifies all the documentation and opens loan accounts of the customer. They also help to obtain CIB of the customer. Then the loan is disbursed to the customer. This is how Brac banks SME loan process work and function all over the country.