Al-Arafah Bank

Al-Arafah Islami Bank Limited

Phone: +880-2-7123255-7, 9568007, 9569353
Fax: + 880-2-9569351

SME Banking

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.

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


Working Capital Investment:
Murabaha / Murabaha TR

Fixed Capital Investment:
HPSM (Equity required)

Rate of Profit/ Rent

Working Capital Investment :
16% (On Reducing Balance Method)

Fixed Capital Investment :
15% (On Reducing Balance Method)


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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