Al-Arafah Islami Bank Limited
Phone: +880-2-7123255-7, 9568007, 9569353
Fax: + 880-2-9569351
Email: aibl@al-arafahbank.com
Name
SME Banking
Description
Introduction
Small and Medium Enterprise (SME) is playing a significant role to the growth of overall GDP of the country. Of all industrial productions, a huge part stems from SME. In order to boost up the small and medium enterprises of the country, Bangladesh Bank has recently advised the commercial banks to enhance the flow of investment and offered directives and policies to supervise and monitor this sector.
As SME has emerged as a thrust sector, Al-Arafah Islami Bank Ltd. also considers it important to extend and enhance finance for the same. Keeping this idea in the forefront, the bank has prepared an integrated policies, methods and procedures for SME investment.
Purpose
To facilitate small and medium level entrepreneurs
To boost up the small business in the country
To facilitate the growth of agro-industries
To create employment
To broaden the base of Islamic Banking in the society
To encourage women entrepreneurs
Modes
Working Capital Investment:
Bai-Muajjal
Murabaha / Murabaha TR
MPI / MPI- TR
Mudaraba
Musharaka
Fixed Capital Investment:
HPSM (Equity required)
Mudaraba
Musharaka
Rate of Profit/ Rent
Working Capital Investment :
16% (On Reducing Balance Method)
Fixed Capital Investment :
15% (On Reducing Balance Method)
Eligibility
Permanent resident of Bangladesh
The age must range between 25 years to 60 years
Physically fit and capable of working hard
Capable of reading & writing
Capable of managing his / her business successfully
Sufficient Infra-structure and skilled personnel
At least 02 (two) years experience in the applied business
Having Transparent CIB Report
Valid Licenses, such as- Trade License, VAT registration, TIN, NOC from Environment Department (where applicable)
Other terms and conditions stipulated by the bank
Securities Against Investment
Personal guarantee of spouse/parents/other family members.
In case of limited companies, guarantees of all directors other than nominated directors shall be obtained.
Registered mortgage of immovable properties with registered Power of Attorney (for 2 lac and above).
Third party personal guarantee (at least one).
Post dated cheques for each installment and one undated cheque for full investment value including full mark-up profit.
Hypothecation on the inventory, receivables, advance payments, plant and machinery.
Bank may relax the security for investment amount up to 2 lac for the growth of SME investment.
Small and Medium Enterprise (SME) is playing a significant role to the growth of overall GDP of the country. Of all industrial productions, a huge part stems from SME. In order to boost up the small and medium enterprises of the country, Bangladesh Bank has recently advised the commercial banks to enhance the flow of investment and offered directives and policies to supervise and monitor this sector.
As SME has emerged as a thrust sector, Al-Arafah Islami Bank Ltd. also considers it important to extend and enhance finance for the same. Keeping this idea in the forefront, the bank has prepared an integrated policies, methods and procedures for SME investment.
Purpose
To facilitate small and medium level entrepreneurs
To boost up the small business in the country
To facilitate the growth of agro-industries
To create employment
To broaden the base of Islamic Banking in the society
To encourage women entrepreneurs
Modes
Working Capital Investment:
Bai-Muajjal
Murabaha / Murabaha TR
MPI / MPI- TR
Mudaraba
Musharaka
Fixed Capital Investment:
HPSM (Equity required)
Mudaraba
Musharaka
Rate of Profit/ Rent
Working Capital Investment :
16% (On Reducing Balance Method)
Fixed Capital Investment :
15% (On Reducing Balance Method)
Eligibility
Permanent resident of Bangladesh
The age must range between 25 years to 60 years
Physically fit and capable of working hard
Capable of reading & writing
Capable of managing his / her business successfully
Sufficient Infra-structure and skilled personnel
At least 02 (two) years experience in the applied business
Having Transparent CIB Report
Valid Licenses, such as- Trade License, VAT registration, TIN, NOC from Environment Department (where applicable)
Other terms and conditions stipulated by the bank
Securities Against Investment
Personal guarantee of spouse/parents/other family members.
In case of limited companies, guarantees of all directors other than nominated directors shall be obtained.
Registered mortgage of immovable properties with registered Power of Attorney (for 2 lac and above).
Third party personal guarantee (at least one).
Post dated cheques for each installment and one undated cheque for full investment value including full mark-up profit.
Hypothecation on the inventory, receivables, advance payments, plant and machinery.
Bank may relax the security for investment amount up to 2 lac for the growth of SME investment.
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