Entrepreneurship Development Program Available in Bangladesh

Preamble:
Entrepreneurship development
Entrepreneurship is often considered one of the most effective and flexible
strategies for economic development of a country. So lack of entrepreneurship
development is one of the reasons for not developing the economy. In Bangladesh
at the time of initiating enterprise, an entrepreneur faces many problems such as
shortage of skilled workers and infrastructural facilities. In Bangladesh lack of
political commitments and absence of creation of healthy environment required for
entrepreneurial growth are the limiting factors in the process of adequate supply of
reasonable number of entrepreneurs. Today, some Govt. and some non-govt.
organizations have come forward with great facilities for entrepreneurs.
Entrepreneurship development program available in Bangladesh:
In Bangladesh, both Govt. and NGOs provide special support to entrepreneurs.
Among them some Govt. organizations are

BSCIC,
Karmasangsthan Bank,

Krishi Bank,

Basic Bank Ltd.

Some NGOs are

Grameen Bank Ltd.,

BRAC,

MIDAS Financing Ltd.,

BRAC Bank Ltd

A case study on entrepreneurship development program provided by them in

Bangladesh is given belowBSCIC:
Bangladesh Small and Cottage Industries Corporation (BSCIC) is the prime mover
organization entrusted with the responsibility of development of small and cottage
industries (SCI) in Bangladesh. It is an autonomous corporation under the Ministry of
Industries and was established by an Act of the parliament in 1957. It is the
successor organization of EPSCIC.
Main Objectives of BSCIC:

Increase of industrial production and productivity in the SCI sector;

Creation of employment opportunities;

Poverty alleviation;

Balanced regional growth;

Ensure optimum utilization of economic and human resources;

Accelerate overall economic growth of the country through SCI.

BSCIC Provides

Pre-investment counselling

Post-investment extension services

Technical information

Design and prototype of handicrafts

Industrial profiles and fact sheets

Marketing information

Infrastructural facilities

Skill development training

Entrepreneurship development training

In-plant advisory services

Credit facilities etc.

Credit Programme: For the promotion and extension of small & cottage industries
BSCIC arranges credit facilities with the help of banks and other financial institutions
.
On the other hand BSCIC has some credit programmes .These are:

Development of rural industries

Poverty Alleviation Through Income Generation Programme

Self employment through small & cottage industries

Women Entrepreneurship Development Programme

Revitalization Of Rural Economy Through Development of rural industries

Karmasangsthan Bank:
The Karmasangsthan Bank was established in 1998 as per Karmasangsthan Bank
Act No.7 of 1998 with a view to involving the unemployed people of the country
especially the unemployed youths in the economic activities through selfemployment opportunities for poverty alleviation. The Government enforced this
law on 30 June 1998 being empowered to do so by article 1(2) of this Act. The Bank

formally started functioning since 22 September 1998 through disbursement of

loans from its main branch at Dhaka.
Activities of the Bank:
Karmasangsthan Bank provides credit facilities in cash or in any any other manner
for all sorts of economic activities, especially to the unemployed youths, for selfemployment, with or without security. Karmasangsthan Bank can perform the
following activities subject to terms and conditions prescribed by Bangladesh Bank :
1. To receive deposits from statutory bodies, companies, loanees of the Bank
and from such other persons as not determined as a single person for the
purpose by the Govt.
2. To procure/receive credit by way of mortgage of its assets or anything else for
conducting its business.
3. To secure pledge, mortgage, hypothecation or assignment of movable or
immovable property as security against loans and advances granted by the
Bank.
4. To purchase shares of any statutory body.
5. To receive savings certificates, title deeds of ownership or any other valuable
articles for keeping them in safe custody.
6. To form, operate and control any kind of fund or trust and to hold and deliver
shares of such fund or trust.
7. To accord advice to the loanees of the Bank about investment of the loan.
8. To invest Banks fund in any sector approved by the Govt.
9. To set up, manage, develop and conduct any institution or project for the
purpose of training, welfare & development of the unemployeds.
10.To receive, collect, remit and pay monies, securities and bills within the
country.
11.With a view to conducting the business, to secure/manage and transfer
movable or immovable property with housing facilities.
12.To advise the unemployeds about investment.
13.To encourage the unemployed workforce to invest in agro product processing
& cottage industries.
14.To provide the loanees with managerial, marketing, technical & administrative
assistances.
15.To open account with any bank or financial institution, to make contract with
them or to act as their Agent.
16.To sell and manage all properties earned by the Bank.

17.With a view to generating employment opportunities, to procure credit or aid

from any donor agency or organization subject to approval of the Govt.
18. To make arrangement for collection of information, research and publications
relating to employment, particularly self-employment in the country.
19. To do such other acts as the Bank is entitled to do and are determined by the
Govt. through Govt. Gazette Notifications.
20. To do any other necessary act which is compatible with objectives of the
Karmasangsthan Bank Act.
21. Besides the above activities, the Bank can issue and sell Bonds and
Debentures subject to prior approval of the Govt. The rates of interest of such
Bonds and Debentures shall be that as determined by the Govt. and each of
such Bond or Debenture shall have Govt. surety behind itself.
22. It is mentionable that with a view to eliminating unemployment and
alleviating poverty through generation of self-employment for the
unemployed youths, the Bank is now providing loans without security in
various productive economic activities.
Credit policy:
Main Characteristics of loan disbursement policy are stated below:
A. Eligibility for Loan/Credit facility:
1. The applicants age should be generally from 18 years to 40 years (Age limit :
18-45 years); but Age limit is flexible incase of old loanee of the bank.
2. The applicant should be unemployed/Quasi-unemployed.
3.

Ability to operate the Project/Business organization.

4.

Must have experience & training in operating the proposed project/ business
organization.

5.

Should not be the loan defaulter as declared by any other Bank/Financial

institute /NGO.

B. Guarantors Eligibility:
1. Being able to pay the loan; Father/Mother/Husband/Wife of the applicant may
become the Guarantor of the loan. Besides this, being able to pay the loan a
person who lives permanently in the project area or who has house & land
property within the project area may also become the Guarantor.
2. Highest a person can become the Guarantor for two loanee/one group.
3. A person serving in Govt/Semi-Govt/Autonomous Organization may become
the Guarantor as per rules set out by that organization.
C. Non- encumbrance Certificate:

The entrepreneur/Guarantor need to submit Non-Encumbrance Certificate (NEC)

issued by the relevant Sub-Register for loan limit above Tk= 5.00 Lacs.
D. Selection of borrower/entrepreneur:
Criteria listed below are usually followed to select a borrower/entrepreneur:
1. An enthusiastic person desirous for loan among the Youths (Male & Female)
trained from the Directorate of Youth development.
2. A person, who achieved/secured training form various Govt/Govts approved
private organizations.
3. An enthusiastic person within the jurisdiction area of the branch. Who comes
to seek loan in response to the local advertisement.
4. A person, who is familiar to the present entrepreneur/Loanee of the Bank.
5. Self- initiated person who comes to seek loan.
6. Persons selected by the field workers of the Bank during their tour in the
assigned area.
E. Application & fees:
The applicant should have to apply in the prescribed form for loan supplied by the
bank in free of cost. No need to pay any sort of Fees at the time of submission of
the loan application.
F. Scope of loan:
Non-proscribed & commercially viable/ productive/ Commercial/Service oriented any
type of Economic activities may be regarded as head of loan.
G. Rate of Interest:
1. 12 % simple interest rate in commercial sector
2. 10 % simple interest rate in productive & service oriented sector.
H. Limit of Credit facility/Loan limit:
1. Highest Tk. = 5.00 Lac in case of person;
2. Highest Tk. = 25.00 Lac in case of group.
Security of Loan:
1. Personal Guarantee against loan limit upto Tk. 50,000/2. In addition to personal Guarantee equitable Mortgage (deposition of Title
Deed in the Bank) against loan limit Tk. 50,001/- 5.00 lac.
3. Registered Mortgage against loan limit above Tk. 5.00 lac.
J. Tenure of Loan: Highest 05 (five) years.

K. Weekly Savings:
1. The Loanee under the category of loan limit up to Tk. 50,000/- shall have to
deposit at least Tk. 10/- per week;
2. The loanee under the category of loan limit from Tk. 50,000/- to 1 lack. Shall
have to deposit at least Tk. 20/- per week.
3. The loanee under the category of loan limit above Tk. 1.00 lac shall have to
deposit at least Tk. 40/- per week.
L. Loan sanctioning Authority:
1.

Branch Manager at Upazilla Level: upto Tk. 40,000/-

2.

Branch Manager at District Level: upto Tk. 50,000/-

3.

Head office: Above Tk. 50,000/-

Special Credit Programs:

The following welfare oriented special credit Programmes of the Government are
being implemented by this Bank1. Programme for eradication of Hazardous Child Labour in Bangladesh (EHCLB)
is being launched by this bank under the patronage of the Ministry of labour
& employment. Mean While, the Bank has provided credit facilities without
security to the parents of 5000 Child-labour.
2. With a view to revamp & uplift the economic condition of the country, the
bank under the guidance of the Ministry of Finance is executing the credit
Programme to assist the entrepreneurs for the development of Agro-based
industries.
3. 3.
Under the Patronage of the Ministry of Labour & Employment this Bank
is providing credit facilities without security among the selfRetired/retrenched workers & employees of industries & factories for their
Self-employment.
Karmasangsthan bank offers the following welfare oriented special credit
Programmes :

Programme for eradication of Hazardous Child Labour in Bangladesh (EHCLB)

Programme to assist the entrepreneurs for the development of Agro-based

industries

Programme for self-Retired/retrenched workers & employees of industries &

factories for their Self-employment. (SEIF)

Bangladesh Krishi Bank:

Bangladesh Krishi Bank (BKB) is a 100% government owned specialized Bank in

Bangladesh. KRISHI means Agriculture. Since its inception, BKB is financing in
agricultural sector remarkably. BKB also performs commercial banking.
The major occupation of the people of Bangladesh is Krishi. Krishi is a Bengali
word which means Agriculture. About 85% of the population depends directly or
indirectly on agriculture which contributes a significant portion to GDP.
Bangladesh Krishi Bank (BKB) has been established under the Bangladesh Krishi
Bank order 1973 (Presidents Order No 27 of 1973). BKB is a Banking Company
under the Banking Company Act-1991.
Credit Programs:
1. 1.
Crop Loan: Out of total annual allocation of Loan portfolio, 60% is
earmarked for Crop financing. The Credit program covers all the seasonal
crops produced in the country. The loan is disbursed as per norms set by the
Bangladesh Bank. The rate of interest for this sector is 8%. The rate of
interest may however, vary from time to time. Both the landowner and
sharecroppers are normally the target group for this loan. Marginal farmers
are also eligible for the loan.

Crop loan is sanctioned on annual basis.

Credit passbook is issued to each borrower.

1. 2.
Fisheries Loan: To accelerate fish production BKB provides loan for
excavation and re-excavation of ponds, development of marshy lands,
establishment of fish hatcheries and new fisheries projects. The Loans are
given in the following sub sectors:

White Fish

Shrimp culture (Marine, Brackish water and sweet water Culture )

Fish & Shrimp hatchery (fingerlings production)

3. Live Stock & Continuous Loan: Beef Fattening Program

Objectives of the program:
1. Create self-employment opportunity for poor and un-employed people.
2. Meet national deficit of animal protein.
3. Bring positive change in the attitude of the people through training.
4. Ensure participation of bank officials in the program and increase their
sense of duty and consciousness.
Main Aspects:
1. Purely supervised credit.

2. The bank officials giving guarantee are responsible for recovery of loan.
3. Each borrower will get maximum Tk. 25,000/-for 5 calves (each Tk. 5,000/-)
4. Loan is collateral free.
5. Repayable within one year.
Continuous Loan:

The bank is providing continuous loan for different types of activities as cash
credit/working capital loan on short term basis.

Continuous loan is given for processing, preservation and marketing of

agricultural products.

1. Farm & Irrigation Equipment: With the Changing scenario the traditional
agricultural system is being replaced by mechanized one. In order to meet up
the changing demand of this sector, BKB offers credit facilities both for
production and marketing of different agricultural equipment and farm
machinery including irrigation equipment. All sorts of irrigation equipments
like LLP, HPTW, STW, DTW are eligible under the sector.
2. S M E: Bangladesh Krishi Bank has recently introduced the SME policy
strategies and financing norms in accordance with the industrial policy 2005
and Bangladesh Banks Prudential Regulation to assist in the achievement of
Millennium Development Goals (MDGs) set by the government. BKB started
SME financing since October, 2007.
Booster Sectors of Small and Medium Enterprise (SMEs) are:

Electronics & Electrical

Software Development

Light engineering and metalworking

Agro-processing/agri-business/plantation agriculture/specialist farming/tissueculture and related business.

Leather making and leather goods

Knitwear and readymade garments

Plastics & other synthetics

Healthcare and diagnostics

Educational Services

Pharmaceuticals/cosmetics/toiletries

Electronics & Electrical

Fashion-rich personal effects, wear and consumption goods

Credit Facility:

Small Enterprises : Tk. 2.00 lakh to 50.00 lakh

Medium Enterprises : Tk. 51.00 lakh to 500.00 lakh

Interest Rate:

Small Enterprises : 12.50%

Medium Enterprises : 12.50%

Working Capital : 13.00%

Repayment:
EMI (equal monthly installment) maximum for 5(five) years and working capital for
1(one) year.
BASIC Bank Ltd.:
BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited)
registered under the Companies Act 1913 on the 2nd of August, 1988, started its
operations from the 21st of January, 1989. It is governed by the Banking Companies
Act 1991. The Bank was established as the policy makers of the country felt the
urgency for a bank in the private sector for financing small scale Industries (SSIs).
At the outset, the Bank started as a joint venture enterprise of the BCC Foundation
with 70 percent shares and the Government of Bangladesh (GOB) with the
remaining 30 percent shares. The BCC Foundation being nonfunctional following the
closure of the BCCI, the Government of Bangladesh took over 100 percent
ownership of the bank on 4th June 1992. Thus the Bank is state-owned. However,
the Bank is not nationalized; it operates like a private bank as before.
BASIC Bank Limited is unique in its objectives. It is a blend of development and
commercial banks. The Memorandum and Articles of Association of the Bank
stipulate that 50 percent of loanable funds shall be invested in small and cottage
industries sector.
The Bank Offers:

Term loans to industries especially to small-scale enterprises.

Full-fledged commercial banking service including collection of deposit, short

term trade finance, working capital finance in processing and manufacturing
units and financing and facilitating international trade.

Technical support to Small Scale Industries (SSls) in order to enable them to

run their enterprises successfully.

Micro credit to the urban poor through linkage with Non- Government
Organizations (NGOs) with a view to facilitating their access to the formal
financial market for the mobilization of resources.

In order to perform the above tasks, BASIC Bank works closely with its clients,
the regulatory authorities, the shareholders (GOB), banks and other financial
institutions.

Corporate Strategy

Financing establishment of small units of industries and business and

facilitate their growth

Small Balance Sheet size composed of quality assets.

Steady and sustainable growth.

Investment in a cautious way.

Adoption of new banking technology.

To employ funds for profitable purposes in various fields with special

emphasis on small scale industries.

To undertake project promotion on identify profitable areas of investment.

To search for newer avenues for investment and develop new products to suit
such needs.

To establish linkage with other institutions which are engaged in financing

micro enterprises.

To cooperate and collaborate with institutions entrusted with the

responsibility of promoting and aiding SSI sector.

Activities:
1. Industrial Credit
BASIC Banks services are directed towards the entrepreneurs in the small
industries sector. A small industry, as per Industrial policy 1999 approved by the
Cabinet, has been defined as an industrial undertaking whose total fixed investment
is less than Tk.100 million.
BASIC Banks services are specially directed towards promotion and development of
small and medium industries. Its exposure to small and medium industries sector
accounted for 54.65 percent of the total loans and advances. During the year total
of 111 projects were sanctioned term loan. As on 31 December 2010, total 966
projects were in the portfolio of the bank. The textile sector including garments
being one of the major contributors to national economy dominated the loan
portfolio of the Bank. Financing in other sectors include agro based industry like
poultry, engineering; food and allied industries; chemicals, pharmaceuticals and
allied industries; paper, board, printing and packaging; and other non-metallic
goods, leather and jute products.
2. Commercial Credit

The Bank also continued support in developing trade, general business and other
commercial activities in the country. It covers the full range of services to the
exporters and importers extending various facilities such as cash credit, export cash
credit, packing credit, short term loans, local and foreign bills purchase facilities.
3. Micro Credit
BASIC Bank launched a Micro Credit Scheme in 1994. Micro Credit Scheme provides
for the poor for generation of employment and income on a sustainable basis
particularly in urban and suburban areas. The Bank follows three systems of credit
delivery.
These are:
1. Lending to the NGOs who on-lend to their members. At present there are 41 such
NGOs.
2. Lending direct to the targets groups or ultimate borrowers under the Banks own
management.
3. Lending direct to the member-borrowers and NGOs providing nonfinancial
services like group formation and monitoring and supervision on exchange for a
supervision fee.
BASIC Bank also provides micro credit to the poor for enervation of employment and
income on a sustainable basis, particularly in urban and suburban areas.
Grameen Bank:
Grameen Bank (GB) has reversed conventional banking practice by removing the
need for collateral and created a banking system based on mutual trust,
accountability, participation and creativity. GB provides credit to the poorest of the
poor in rural Bangladesh, without any collateral. At GB, credit is a cost effective
weapon to fight poverty and it serves as a catalyst in the overall development of
socio-economic conditions of the poor who have been kept outside the banking orbit
on the ground that they are poor and hence not bankable. Professor Muhammad
Yunus, the founder of Grameen Bank and its Managing Director, reasoned that if
financial resources can be made available to the poor people on terms and
conditions that are appropriate and reasonable, these millions of small people with
their millions of small pursuits can add up to create the biggest development
wonder.
As of September, 2011, it has 8.34 million borrowers, 97 percent of whom are
women. With 2,565 branches, GB provides services in 81,379 villages, covering
more than 97 percent of the total villages in Bangladesh.
Credit Delivery System:
Grameen Bank Credit Delivery means taking credit to the very poor in their villages
by means of the essential elements of the Grameen credit delivery system.
Grameen Bank credit delivery system has the following features:

1. There is an exclusive focus on the poorest of the poor. Exclusivity is ensured by:
1. Establishing clearly the eligibility criteria for selection of targeted clientele
and adopting practical measures to screen out those who do not meet them
2. In delivering credit, priority has been increasingly assigned to women
3. The delivery system is geared to meet the diverse socio-economic
development needs of the poor
2. Borrowers are organized into small homogeneous groups:
Such characteristics facilitate group solidarity as well as participatory interaction.
Organizing the primary groups of five members and federating them into centres
has been the foundation of Grameen Banks system. The emphasis from the very
outset is to organisationally strengthen the Grameen clientele, so that they can
acquire the capacity for planning and implementing micro level development
decisions. The Centres are functionally linked to the Grameen Bank, whose field
workers have to attend Centre meetings every week.
3. Special loan conditionalities which are particularly suitable for the poor.
These include:

very small loans given without any collateral

loans repayable in weekly instalments spread over a year

eligibility for a subsequent loan depends upon repayment of first loan

individual, self chosen, quick income generating activities which employ the
skills that borrowers already posses

close supervision of credit by the group as well as the bank staff

stress on credit discipline and collective borrower responsibility or peer

pressure

special safegaurds through compulsory and voluntary savings to minimise the

risks that the poor confront

transparency in all bank transactions most of which take place at centre

meetings.

4. Simultaneous undertaking of a social development agenda addressing basic

needs of the clientele. This is reflected in the sixteen decisions adopted by
Grameen borrowers. This helps to:

raise the social and political consciousness of the newly organized groups

focus increasingly on women from the poorest households, whose urge for
survival has a far greater bearing on the development of the family

encourage their monitoring of social and physical infrastructure projects

housing, sanitation, drinking water, education, family planning, etc.

5. Design and development of organization and management systems capable of

delivering programme resources to targeted clientele.
The system has evolved gradually through a structured learning process that
involves trials, errors and continuous adjustments. A major requirement to
operationalize the system is the special training needed for development of a highly
motivated staff, so that the decision making and operational authority is gradually
decentralized and administrative functions are delegated at the zonal levels
downwards.
6. Expansion of loan portfolio to meet diverse development needs of the poor.
As the general credit programme gathers momentum and the borrowers become
familiar with credit discipline, other loan programmes are introduced to meet
growing social and economic development needs of the clientele. Besides housing,
such programmes include:

credit for building sanitary laterines

credit for installation of tubewells that supply drinking water and irrigation for
kitchen gardens

credit for seasonal cultivation to buy agricultural inputs

loan for leasing equipment / machinery, ie., cell phones purchased by

Grameen Bank members

finance projects undertaken by the entire family of a seasoned borrower.

The underlying premise of Grameen is that, in order to emerge from poverty and
remove themselves from the clutches of usurers and middlemen, landless peasants
need access to credit, without which they cannot be expected to launch their own
enterprises, however small these may be. In defiance of the traditional rural
banking postulate whereby no collateral (in this case, land) means no credit, the
Grameen Bank experiment set out to prove successfully that lending to the poor
is not an impossible proposition; on the contrary, it gives landless peasants the
opportunity to purchase their own tools, equipment, or other necessary means of
production and embark on income-generating ventures which will allow them
escape from the vicious cycle of low income, low savings, low investment, low
income. In other words, the bankers confidence rests upon the will and capacity of
the borrowers to succeed in their undertakings.
The mode of operation of Grameen Bank is as follows. A bank branch is set up with
a branch manager and a number of center managers and covers an area of about
15 to 22 villages. The manager and the workers start by visiting villages to
familiarise themeselves with the local milieu in which they will be operating and
identify the prospective clientele, as well as explain the purpose, the functions, and
the mode of operation of the bank to the local population. Groups of five
prospective borrowers are formed; in the first stage, only two of them are eligible
for, and receive, a loan. The group is observed for a month to see if the members
are conforming to the rules of the bank. Only if the first two borrowers begin to

repay the principal plus interest over a period of six weeks, do the other members
of the group become eligible themselves for a loan. Because of these restrictions,
there is substantial group pressure to keep individual records clear. In this sense,
the collective responsibility of the group serves as the collateral on the loan.
BRAC:
Alleviation of Poverty and Empowerment of the Poor
BRAC is the worlds largest development organisation and is doing tremendous
work impacting the lives of millions. BRAC is making a significant contribution to
Bangladesh, making huge leaps forward in meeting the Millennium Development
Goals.
- Subinay Nandy, Country Director, China, United Nations Development
Programme
It says- Make investment in the small industry, make more profit.
Craft and skill in the cottage industry are our pride and heritage.
Known formerly as the Bangladesh Rehabilitation Assistance Committee and then as
the Bangladesh Rural Advancement Committee, BRAC was initiated in 1972 by Sir
Fazle Hasan Abed at Sulla in the district of Sylhet as a small-scale relief and
rehabilitation project to help returning war refugees after the Bangladesh Liberation
War of 1971. In nine months, 14 thousand homes were rebuilt as part of the relief
effort and several hundred boats were built for the fishermen. Medical centres were
opened and other essential services were ensured.[4] At the end of 1972, when the
first phase of relief work was over, BRAC turned towards long-term development
needs and re-organised itself to focus on the empowerment of the poor and
landless, particularly women and children.
By 1974, BRAC had started providing microcredit and had started analyzing the
usefulness of credit inputs in the lives of the poor. Until the mid 1970s, BRAC
concentrated on community development through village development
programmes that included agriculture, fisheries, cooperatives, rural crafts, adult
literacy, health and family planning, vocational training for women and construction
of community centres.
Their Vision:
A world free from all forms of exploitation and discrimination where everyone has
the opportunity to realize their potential.
Their Mission:
Their mission is to empower people and communities in situations of poverty,
illiteracy, disease and social injustice. Their interventions aim to achieve large scale,
positive changes through economic and social programs that enable men and
women to realise their potential.
Financial activities of BRAC:

1. 1.

Microfinance:

BRACs microfinance program has cumulatively disbursed over USD 5 billion and
serves over 6 million poor and landless people. Ninety-eight percent of BRACs
microfinance members are women, and these members belong to 170,000 Village
Organizations (VOs) that BRAC has created to serve as a forum where the poor can
collectively address the structural impediments to their development, receive credit,
mobilise savings and build upon their social capital.
1. a.
Microfinance DABI: DABI (Microloans): These loans, which range from
USD 50 700, are given exclusively to individual women who are serviced in
a group setting, namely the Village Organisation (VO). The VO acts as an
informal guarantor by creating peer pressure for timely repayment. Borrowers
repay through weekly installments and deposit savings during VO meetings,
held every week in a borrowers courtyard. Microloans are generally used for
small operations in poultry, livestock, fruit and vegetable cultivation,
handicrafts or rural trade.
BRAC has also developed a specialized microloan scheme to encourage the financial
empowerment of adolescent girls, to help them continue their education and
prepare for future financial responsibilities. Under this program, small loans, starting
from USD 40, are coupled with savings facilities and livelihood training, to help girls
start small home-based enterprises.
1. b. Microfinance PROGOTI: PROGOTI (Microenterprise Loans): These
loans, which range from USD 700 to 7,000 are given to both male and female
entrepreneurs to support and expand existing small enterprises which are too
small to qualify for credit from commercial banks. Borrowers generally use
microenterprise loans to finance shops and small-scale manufacturing
activities and repay on a monthly basis.
2. Targeting Extreme Poverty
The most recent estimates suggest that 25% of the population of Bangladesh live in
extreme poverty. About 10% categorized as ultra poor struggling for survival below
the food poverty line .
Since January 2002, BRAC has started a new program for the extreme poor called
Challenging the Frontiers of Poverty Reduction, Targeting the Ultra Poor in short
CFPR-TUP. In CFPR-TUP, BRAC is operating with two exclusive strategies:
Special Investment Program (SIP) a full grant based approach for the Specially
Targeted Ultra Poor (STUP) households who simply need complete tailor made
supports and service to make any positive change in their livelihoods.
Grant plus Credit approach for Other Targeted Ultra Poor ( OTUP) who are slightly
better than the SIP group but still are very poor and need some special support to
make any progress in their lives.
Two fold objective of CFPR-TUP programme is to:

assist the ultra poor population graduate from ultra poverty level.

assist the ultra poor population getting access to the mainstream

development programmes.

3.
Empowering adolescent:The Employment and Livelihood for Adolescents
(ELA) programme combines livelihood and life-skills training with credit facilities to
help improve the quality of life of rural adolescent girls and young women between
the ages of 14 and 25. It was established as a means through which they could
build a savings habit to allow them to be self-supporting in the future. The
programmes target group is varied, with preference given to graduates of BRAC
Education Programme schools. ELA village organisations consists of 20 to 30
members who obtain credit in order to operate income generating activities either
with the help of family members or on their own. The members invest their loans in
tailoring, poultry, livestock, nursery, vegetable cultivation and other small
businesses.
4.

Tenant Farmers Development Project:

Bangladesh Bank offered BRAC a refinancing facility of Taka 500 crore, around USD
75 million, at 5% interest, so that we could offer soft loans to tenant farmers
(sharecroppers) with a specially tailored recovery plan. We took the challenge and
initiated an innovative project entitled Borga Chashi Development Project in
October 2009.
Under the project, BRAC is organising up to 40 tenant farmers (men and women)
into village organisations and providing them with both credit and information on
modern agriculture. Tenant farmers with up to two acres of farm (mostly rented)
who have not taken loans from financial institutions are eligible to become members
of the village organisation. Each farmer is provided with loans of up to Taka 20,000
(USD 3,000) as working capital for crop farming, depending on the size of the farm
and the crop enterprise. The loan bears a flat interest rate of 10 percent per year.
One-third of the loan is repaid in 10 equal monthly instalments, while the rest is
paid back in two parts during the two major yearly harvests. The farmers meet
every month to discuss farming problems with agricultural development specialists
hired for the project. If the specialist cannot address the problem, he/she connects
the farmer with local level government agricultural extension officials.
In 2010, the mobilisation of tenant farmers for provision of credit and extension of
improved technology and modern farming practices were carried out in full swing.
MIDAS Financing Ltd.:
The real friend of entrepreneurs
MIDAS FINANCING LTD. (MFL) is leading financial institution of the country licensed
by Bangladesh Bank under the financial institutions Act 1993. MFL Housing Loan
Scheme has been launched to fulfill the dream of the limited income people by
extending financial support in the form of term loan for constructing a house and/or
purchasing an apartment/readymade house/commercial space.

Vision
To be a leading financial institution of the country with diversified financial services
contributing towards development of an enterprising society.
Mission
I to provide value added financial services to valued customers, strictly maintaining
the ethical standard in financial operation.
Objective
To provide diversified financial services within the legal and social framework with
the aim of attaining the mission with quantitative targets in business operation.
Loan & Other Schemes:

Housing Loan

Call Money

CCS Program

Lease Financing

MIDI Program

SED Program

LLS

Lease Financing:
MIDAS Financing Ltd. (MFL) extends lease finance facility to SME and Corporate
Business Units in the manufacturing and service industries sectors and also to
individuals and institutions.
Leasable Items

Capital Machinery

Heavy Construction Equipment

Generator, Transformer, Lift, Boiler, etc.

Air Conditioning and Refrigeration Equipment

Medical Equipment

Vehicles

Agricultural Equipment

Lease Period
2-5 years

Installment
Monthly, bi-monthly or quarterly
Lease Security Deposit
2 (tow) rental installments
Security:

Purchase and insurance of the lease asset in the name of MFL AND

Personal Guarantee of the Sponsors AND

Third Party Guarantee of 2 (two) responsible persons acceptable to MFL OR

Corporate Guarantee OR

Mortgage of Land or Building OR

Lien of Term Deposit Receipt (TDR) OR

Lien of Marketable Securities

Special Features of the Product

Relatively short processing time

Competitive pricing

Flexible repayment (advance or arrear basis)

Scope for customization of the product

BRAC Bank Ltd.:

BRAC Bank is the last organization to have received a commercial banking license
from Bangladesh Bank, making it the youngest private commercial bank in
Bangladesh. Its headquarters are based in the capital Dhaka. The bank is partially
owned by BRAC, the largest non-government organization in the world, International
Finance Corporation, the private sector arm of The World Bank Group and ShoreCap
International.
BRAC Bank was formed with the aim to serve the millions of small and medium
enterprises (SMEs) in the country. Having pioneered the concept of SME financing in
Bangladesh, it is the fourth largest SME bank globally. The company also provides
services within corporate and institutional banking, retail banking, as well as
probashi banking, which specifically caters to non-resident Bangladeshis abroad.
Other areas include customized treasury and foreign exchange solutions, and
custody services. It ranks amongst the top banks nationally that processes
remittances from abroad.
SME Banking

BRAC Bank, being the youngest bank, took a step to break away from usual tradition
and tapped into the true suburb entrepreneurial initiatives.
Today, with over 14,500 crores of loans disbursed till date, BRAC Bank is countrys
largest SME financier that has made more than 320,000 dreams come true!
Loan Products

Anonno Rin

Apurbo Rin

Prothoma Rin

Durjoy

Shomriddhi Rin

Shompod Rin

Shokti Rin

ANONNO SME Loan: ANONNO is a business loan to meet any kind of business
needs, which starts from BDT 3 Lac to10 Lac.

No security required

Overdraft facility

Easy installment

Easy loan processing.

Eligibility: Any kind of business having valid trade license, which has been operating
at least 2 or more years.
Sole proprietorship, Partnership or Private Limited company
Small & mid-sized businesses (Production, Trading, Service, Agro based products
and others)
APURBO SME Loan:
APURBO is a loan facility for Small & Medium Entrepreneurs. To meet any kinds of
business needs, APURBO is offering BDT 1 million to BDT 5 million loan against
registered mortgages.
Specialty of this loan

Term loan and overdraft based on your business needs.

Limited documents

10 to 50 Lac Loan

Easy installment and overdraft facility

Eligibility:

Any kind of business having valid trade license, which has been operating at
least 3 or more years.

Those who have property/land/building

PROTHOMA SME Loan:

Prothoma is a term loan for small scaled business operated by women entrepreneur,
Maximum BDT 1 million is offered to meet business needs.

No security required

As low as 10% interest rate

Tenure from 1 to 4 years

Easy loan processing

Eligibility:

Any kind of business having valid trade license, which is at least 2 years of
old.

Sole proprietorship, Partnership or Private Limited Company

Small & mid-sized business (Production, Trading, Service and others)

DURJOY SME Loan:

To meet your business needs DURJOY is offering BDT 3 Lac to BDT 2.5 million Loan
without any security.
Specialty of this loan

Up to BDT 25 Lac loan in the name of business

Easy installment up to 5 years

Convenient interest rate

Overdraft facility

Eligibility:

Any kind of business having valid trade license, which has been operating for
at least 3 years.

Sole proprietorship, Partnership or Private Limited Company

1 year bank statement

SHOMRIDDHI SME Loan:

To meet import-export related expenses, post import expenses, tax/duty payment,

local bill purchase and working capital, SHOMRIDDHI loan is offering BDT 1 Lac to
BDT 10 million.

LC and LATR facility

Revolving loan, overdraft

Local bill discounting facility

Letter of Credit (LC)/Loan against trust receipt (LATR)

LC opening facility: from BDT 1 Lac to BDT 10 million

Up to 90% loan against LC

Revolving Loan

Import duty payment or goods purchase facility

Loan up to BDT 10 million

Local Bill Purchase

Loan up to BDT 10 million in export

Specialty of this loan

Easy loan processing

Convenient interest rate

Loan payment facility up to 180 days.

Eligibility

Any kinds of businesses having valid trade license and which has been
operating for at least 3 years.

Sole proprietorship, Partnership or Private Limited Company.

SHOMPOD SME Loan:

SHOMPOD is a loan facility starting from BDT1 million to BDT 35 million against
home or business premise mortgage.
Specialty of this loanWith overdraft facility which will help to meet your working capital need.

Loan against home or business premise mortgage to meet business needs.

Loan is also available to purchase business premise

Up to BDT 35 million loan facility

Installment facility up to 10 years

Convenient interest rate

Eligibility:
Small & mid-sized of business having valid trade license, which has been operating
for at least 3 years in Dhaka & Chittagong.
SHOKTI SME Loan:
Business loan under which you can avail BDT 1 million to BDT 7 million to meet your
any kind of business needs.

Loan against partial security or fixed deposit

At least 1 year bank statement.

Conclusion:
To enhance entrepreneurship, separate programmes have been launched in
Bangladesh for educated youths and women. Specialized entrepreneurship courses
have been included in the undergraduate and graduate programmes of business
education. Entrepreneurship development program available by BRAC, MIDAS
Financing Ltd., Karmasangsthan Bank, Basic Bank in Bangladesh is really
appreciable but it is not enough. Govt. should take some further policies to
encourage and help entrepreneurs because entrepreneurship is the main way to
develop the country.
Bibliography:
1. http://www.bscic.gov.bd/
2. http://www.krishibank.org.bd/
3. http://www.karmasangsthanbank.gov.bd/
4. http://www.basicbanklimited.com/
5. http://www.grameen-info.org/
6. http://en.wikipedia.org/wiki/BRAC_(NGO)#Economic_Development
7. http://www.mfl.com.bd/
8. http://www.bracbank.com/
9. http://en.wikipedia.org/wiki/BRAC_Bank