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SME Financing » Pubali Prochesta
Pubali Prochesta
Introduction
The SMEs worldwide are recognized as engines of economic growth. The important role of SMEs in the national economy of Bangladesh for creating over 90 per cent of industrial enterprises, generating employment to 4 out of 5 industrial workers and contributing to over one-third of industrial value-added to gross domestic product (GDP) emphasizes its promotion by providing access to finance. The relative SMEs share in manufacturing value-added is much higher and estimated to vary between 45 to 50 per cent of totaling value-added generated by the manufacturing industries sector. With these perceived merits of SMEs, Bangladesh Bank has emphasized for their promotion especially in the area of access to finance and has given several directions to the scheduled Banks. For compliance to central bank’s instructions and prospects of SMEs in Bangladesh economy, Pubali Bank Limited introduced three products namely Pubali Subarna, Pubali Karmo Uddyog and Pubali Sujan. All these products are demand loan by nature. But we do not have any product for SMEs to ensure continuous finance for fulfilling the needs of working capital. Research and Development Division in consultation with the Creadit Division has designed a product named “Pubali Prochesta” to augment working capital base in SMEs for uninterrupted day to day operations. The features of the products are given below:
For any query please Contact at: Tel: (PABX) 9551614 FAX: 880-2-9564009 or e-mail us at [email protected]
Product Object
Small and medium enterprise ('SME”) borrowers may need to ensure source of continuous finance for uninterrupted operation. Pubali Prochesta will help SMEs to augment working capital base to meet the day to day financial needs.
Customer segment
Any SME entrepreneur
Purpose
To meet any justifiable working capital need.
Nationality
Bangladeshi
Age limit
From 21 years up to 60 years (the borrower's age must not exceed 60 at the expiry of loan tenor)
Minimum income
Minimum income must commensurate with the amount of loan applied for.
Borrower's eligibility
The entrepreneur:
must have skills in managing his/her business and has experience of successfully managing the business for at least two (2) years;
is between 21-60 years of age; and
has good reputation.
One exception to the above criteria applies: If a SME customer fully covers credit facility by providing collateral security and has prior employment/business experience in the related industry, the 2 year experience requirement may be relaxed. But experience should be more than 1 year.

In case of individual, S/he must be Bangladeshi. If the borrower is a company/firm or a joint venture, it must be registered in Bangladesh and majority shares owned by Bangladeshis.

The applicant must be 100% privately owned, controlled and operated.

The Principal place of business must be in Bangladesh.

The project must be financially and economically viable.

If the borrower is unable to provide collateral/security, she/he must arrange at least one (1) guarantor acceptable to the Bank. If borrower is capable of offering collateral/security, guarantors' requirement may be relaxed and will be reviewed on a case to case basis.

Successful track record and good credit history will be given weight.
Loan size
Tk. 2 lac to Tk 10 lac for SE customers
Tk 5 lac to Tk 100 lac for ME customers (Collateral is a must)
Security/Collateral
Registered mortgage of property/ownership of the space/possession right purchased in Bank's name;
Hypothecation of machineries, equipment, vehicles, inventories;
Lien of cash collateral (FDR) and other en-cashable financial instrument;
In case of proprietorship concern, PG of borrower and spouse;
In case of private ltd. co. or partnership company, PG of all the directors/partners and their spouses to be obtained;
Post dated replaceable cheque covering the tenor and limit of the loan;
Usual charge documents;
Others as applicable.
Documentation
Valid trade license of the applicant;
Copy of at least 1 year old trade license;
Notarized partnership deed/registered by SRO (in case of partnership company);
Memorandum and Articles of Association in case of private limited co.
Passport/national ID/Photocopy of ward commissioner/UP chairman certificate of the proprietor/Partner;
Photo of the proprietor/partners/a/c signatory attested by the applicant and verified by relationship manager;
Last 12 months bank statement of concerned account;
Statement of all active bank loans;
Latest clean/UC/standard CIB report;
Net worth statement of all borrowers and guarantors.
Insurance
Fire, flood and RSD insurance as applicable.
Processing fee
1% but not exceeding Tk. 10,000.00
Interest/profit rate
15%p.a. However, the rate is subject to change based on the market conditions and policy of the Bank.
Penal interest rate
1% above the regular interest rate to be applied on overdue amount.
Interest calculation
Interest will be calculated on daily product basis for debit balance in the following manner.
Accrual will be made on end of month.
Interest application
Quarterly compounded. Interest will be charged in March, June, September and December each year.
Accounting Entries for Interest Capitalization at quarter end
Debit: Loan Account (customer)
Credit: Interest on Advance
Monthly Provision
Monthly Provision to be kept for Accrued Interest
Accounting Entries for Interest Accrual
Debit: Interest on Advance
Credit: Income Account (for unclassified accounts)
Credit: Interest Suspense Account (for classified accounts)
Stamp charges
All relevant stamp charges will be on borrower's account and will be debited from the account at the time of disbursement.
Maximum tenor of the loan
One (1) year for continuous loan.
Grace period
Not applicable.
Repayment method
Accounts liabilities to be adjusted every quarter through regular deposits daily/monthly/quarterly but full and final adjustment shall be made within the validity period.
Type of facility
CC(H), SOD
Disbursement precondition
All the documentation formalities must be completed prior to disbursement.
Debt-to-Equity ratio
Maximum 50:50 before disbursement.
Deposit Procedure
Random by the depositor, no restriction for deposit
Withdrawal Procedure
By cheques supplied by the bank
Debit by bank through voucher is allowed
Withdrawal Frequency
Random by the Customers within the sanctioned limit
Return of Cheques
To be recorded in Cheque Return Register
Charges recoverable for dishonour of cheque for insufficient fund.
Balance Confirmation
Balance confirmation to be obtained from the account holders as at 31st December each year.
Stopped Cheque
Stopped Cheque Register to be maintained
Standing Instruction
Standing Instruction Register to be maintained
Other Charges
Excise Duty, Incidental Charges, Service Charges are applicable
Transfer of Account
Non transferable
Duplicate Statement
Charge for issuance of duplicate statement
Closing Charge
No closing charges to be realized
Classification Status
Depending upon the time value after expiry of the Cash Credit limit
Repayment method
There is no repayment schedule. Borrowers can payback the entire loan amount on or before expiry date.
Renewal
The facility may be renewed and/or enhanced by the authority as merit basis
Change of Interest Rate
Interest rate can be changed anytime during the tenor of loan
Special Services
The Special Services except general services that may be provided to the customer by the Bank, these include:
Loan Ledger Statements
Interest Calculation Sheet
Account Closure
Verification
Contact point verification will be done as per prescribed format. It includes address of residence and office, telephone no and references. All verifications will be done to seek/verify/confirm the declared/undeclared information for proper identification of the applicant.
Common restrictions
Stock report must be prepared/obtained and placed with loan application;
Credit risk grading (“CRG”) shall have to be at least “Acceptable” (CRG of at least 75) grade for ME customers;
From the date of the availing the facility the client has no operate his/her transaction through PBL account. At least 50% of the sales should be routed through the designated account in PBL.
Foreign Currency Rates
Currency Buying Selling
USD 81.00 82.50
EURO 86.15 90.80
GBP 99.70 104.70
News & Events

November 08, 2016
A training course on ‘Foundation Training for Senior Officers & Officers’ was held recently under the auspices of Pubali Bank Training Institute.

 

November 03, 2016
Pubali Bank Ltd. holds 4th conference-2016 of Regional and Corporate Branch Managers .

 

November 03, 2016
Pubali Bank Ltd. holds 4th conference-2016 of Regional and Corporate Branch Managers .

 

November 02, 2016
Pubali Bank Limited donates Tk. 20(Twenty) Lac to Dhaka Bar Association .

 

October 27, 2016
Pubali Bank Ltd. organizes Follow up Meeting with the CLS Agents on Consumers Credit Scheme .

 

October 23, 2016
Pubali Bank Ltd. gives bicycle to girls of Monir Ahmed Academy, Sylhet .

 

October 19, 2016
Pubali Bank Ltd. inaugurates its shifted Gulshan Model Town Corporate Branch.

 

March 01, 2015
Pubali Bank Ltd. recommended for 10% Cash Dividend for the year 2014.

 

February 23, 2015
Md. Abdul Halim Chowdhury new Managing Director of Pubali Bank Ltd.

 

February 22,, 2015
1st Managers’conference-2015 of Dhaka South Region of Pubali Bank Ltd. held.

 

All News