the role of sme loan in small business management presented by: icon

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: ahsanmgt.cu@gmail.com

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: shahidula49@gmail.com

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%

Personal Profile

Mashiur RahmanExam roll:2006/05Class roll: 4953Hobby: Playing cricketE-mail: mashiur4953@yahoo.com

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: anikmohajan@gmail.com

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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