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The Role of SME Loan in Small Business Management
Presented by:
ICON
Personal Profile
Rezaul Karim SohelID:2006/01Hobby: DebatingFavorite Quote: You are not for you
only, Society too.
Definition of SMEsEnterprises concern Total Asset
(at cost, excluding land and building)
Total no. of employees (not more than)
Small enterprises
Manufacturing
Tk. 50000 to 1.50 crore
50 persons
Service Tk.50000 to 50 lac
25 persons
Medium enterprises
Manufacturing
Tk. 1.5 to 20 crore
150 persons
service tk. 50 lac to 10 crore
50 persons
SME Loan Small Business is a loan facility designed to finance small scale
trading, manufacturing and service ventures, especially to help small and medium entrepreneurs to meet their short-term cash flow shortages and bridge the fund-flow gaps.
Purposes• Working capital• Purchase pf capital machinery• Refurnishing office or business promises etc.
Role of SMELoan
Role of SMELoan
Income generation
Employment generation
Business ExpansionBusiness Expansion
Role of SMELoan
Improvement of managerial efficiencyImprovement of managerial efficiency
Improvement of Living StandardImprovement of Living Standard
Economic self sufficiencyEconomic self sufficiency
Requirements of getting loan
National ID Card Trade license TIN Business Experience Personal grantor Business plan Financial statements Mortgage Collateral Security
Financial InstitutionsBrac Bank:Brac Bank LtdEastern Bank LtdDutch Bangla Bank LtdCity Bank LtdAB Bank LtdBangladesh Krishi BankJanata BankUnited Commercial BankBASIC Bank Ltd
Leasing Company:IDLC LtdLanka Bangla Finance Ltd
Personal Profile
Ahsanul HoqueExam roll:2006/04Class roll: 5031Hobby: TravellingE-mail: [email protected]
Brac Bank: Started its business in
2001 One of the fastest growing
bank Deserves 1st position in
providing SME Loan Having 421 SME centers Distributed Tk 14,500
cores for SME loan purpose
Given SME loan to 320,000 entrepreneurs
Brac Bank SME Products:
Apurbo Rin Given to those people who
are involved in trading, manufacturing, agriculture and agro-based industries
3 years experience Max loan Tk 50 Lac Given at a competitive
interest rate Have to repay within 36
months
Anonno Rin
2 years experience Given to small businesses Min loan Tk 3 Lac and Max Tk 10 Lac Interest rate 17% Have to repay within 36 months
Digoon Rin
Given to SMEs 2 years experience Min loan Tk 5 Lac and Max loan Tk 30
Lac Interest rate 17% Have to repay within 36 months
Prothoma Rin
Given to SMEs operated by women entrepreneurs
2 years experience Min loan Tk 3 Lac and Max Tk 10 Lac Interest rate 15% Have to repay within 36 months
Aroggo Rin
Given to private health service providers 2 years business experience Min loan Tk 3 Lac and Max Tk 30 Lac Interest rate 17% Have to repay within 48 months
Durjoy Rin Given to SMEs for working capital
purpose 2 years experience Min loan Tk 3 Lac and Max Tk 25
Lac Interest rate 18% Have to repay within 5 years
Proshar Rin Given to SMEs involved in
manufacturing business 2 years experience Min loan Tk 3 Lac and Max Tk 30
Lac Interest rate 17% Have to repay within 60 months
Trade Plus Loan Given to SMEs involved in export-
import businesses 2 years experience Max loan Tk 30 Lac Have to repay within 6 months
Business Equity Loan Given for commercial purpose Having business in Dhaka and
Chittagong metropolitan areas Max loan Tk 3.5 cores
Personal Profile
Shahidul AlamExam roll:2006/38Class roll: 4905Hobby: AnglingE-mail: [email protected]
Dutch-Bangla Bank:
Most innovative & technologically advanced bank
Estd.1995 Launched the first ATM booth
in the country Having most ATM booth in
the country
DBBL SME Products:
Smart SME Cash- Credit Small shop Financing
Scheme DBBL Smart Women
Entrepreneur
Smart SME Cash- Credit:
Target customers: manufacturing, trading and service businesses
Security: loan exceed Tk. 5 lac
Loan amount: Min- 1 Lac Max- 50 Lac Interest rate: 14%
Small shop Financing Scheme:
Purpose: seasonal financing
Target customers: manufacturing, wholesaling, retailing activities
loan amount: Max loan 5 lac Interest rate: 17%
DBBL Smart Women Entrepreneur:
Target customers: SMEs run by women entrepreneurs
Funding: central bank loan amount: Min- 1 Lac Max- 5
Lac Interest rate: 13%
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Mashiur RahmanExam roll:2006/05Class roll: 4953Hobby: Playing cricketE-mail: [email protected]
Eastern Bank: Started its business in
1992 One of the leading
commercial bank Its started its SME
banking in 2003
EBL SME Products: EBL Puji: Given SMEs for any
business purpose 3 years experience Min loan 5 lac & maxi
loan 50 lac. Loan amount exceeding
9 lac 90 thousands requires collateral security.
Have to repay within 36 months
EBL Agrim Given for any business
purpose Collateral free loan Min loan 2 lac & max 9 lac 50
thousands Have to repay within 6
months Personal guarantee is
required. EBL Bannijyo
Given SMEs involved in import businesses
1 year experience Max loan amount 2 corers Have to repay in equal
monthly installment . 30-40% of total limit is
required in the form of FD as collateral.
EBL Subidha Given for any business
purpose Available at any EBL Branch Min loan 1 lac Collateral free up to 10 lac
EBL Asha Given to sole proprietors or
private limited companies 1.5 year business experience Collateral free loan Min loan 2 lac & max 9 lac 90
thousands Have to repay within 24
months
EBL Mukti: Given to SMEs for any
business purpose It is only given to women
entrepreneurs Collateral free loan Max loan amount Tk 3 Lac Interest rate 10% which is
lowest in the country Have to repay within 18
months
EBL Uddog: Given to SMEs for any
business purpose 1.5 years experience Min loan Tk 6 Lac and Max
Tk 50 Lac Have to repay within 60
months
Personal Profile
Anik MohajanExam roll:2006/09Class roll: 4911Hobby: Watching cricketE-mail: [email protected]
Problems Of SME Loan Disbursement 1) Delay In
Repayment Of Loan
2) Trustworthiness Of Loan Borrower
3) Failure To Submit Proper Business Plan
Problems of SME Loan Disbursement Failure To Submit
Financial Statement
Lack Of Entrepreneurial Knowledge
Lack Of Govt. Support
Problems Of SME Loan DisbursementLack Of Available
Fund
High Rate Of Interest Rate
RecommendationsProvide Consultancy
Service
Reduction Of Interest Rate
Increase Fund For SME
Increase Govt. Support
Conclusion:
SME Loan is playing a positive role for the development of SME entrepreneurs. This Sectors can also be Well established by proper management of SME Loan. New entrepreneur now can encourage to take risk of starting business to apply their innovative ideas and to have freedom of life.
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