Micro Enterprize and Special Credit

Retail Customer Department (RCD-4) is responsible for implementing of (i) Micro Credit Programs related with the poverty reduction, (ii) Special credit programs related with employment generation and (iii) Financing of agro-based industries.

Bank has different micro-credit programs of its own & in collaboration with other agencies. For successful implementation of these credit programs specially poverty reduction credit programs it requires close supervision and monitoring. Considering Bank's manpower/field staff it is not always possible to ensure intensive supervision at the grass root level. To make the micro credit programs time & cost effective bank has initiated linkage program using intermediaries/collaborating agencies (GOs & NGOs). Collaborating agencies are responsible for organizing the target groups (conducting survey, formation of groups, providing training etc.) including supervision and recovery of credit .

The main features of different micro-credit programs are narrated below:-

Objectives : For creation of self employment & poverty reduction.
Area of operation : Throughout the country.
Activities & Appraisal :

(a) Initially 45 IGAs. Presently any viable IGAs.
(b) Production plan/appraisal is prepared on the basis of activities and market rate.
(c) Loans are determined on the basis of credit norms/ceiling given by Head Office or present market rate subject to the prior approval from the concerned authority.

Associate agencies : Bank's own program.
Approach : Individual.
Term : ST & MT.
Security :

(a) Up to Tk.50,000/-, no collateral is required
(b) Personal guarantee in favour of loanee from an acceptable person.
(c) Hypothecation of goods ( If applicable).

Disbursement : Disbursement is made in cash by installments. Purchase receipts/documents to be kept in respective loan file.
Repayment : Repayable by weekly/fortnightly/monthly installment. Repayment period and mode of repayment is fixed depending on the nature of activities & generation of income
Rate of interest : 11%
Delegation :

Delegation of business powers as per RCD circular no- 281 dated: 29-06-2004
(in lacs)

Branch Managers

RM AGM DGM GM
Gr-3 Gr-2 Gr-1
0.30 0.40 0.50 2.00 3.00 4.00 5.00
Related Circulars/Letters :

RCD- 215 dt: 10-04-1993 & 281 dt: 29-06-2004

Letter No: পঋবি/পলি-ডিবিপি(সকল অঞ্চল)/আশিষ/৯৫/৪৩৯৯ তাং-০৩-০১-৯৫ইং এবং পঋবি /বর্ধক-নিয়মাচার/আশিষ/৯৬/৭ তাং-০৬-০১-৯৬ ইং।

2.Small Farmers & Landless Labourers Development Project(SFDP)-1976

Objectives : Employment generation of the poor.
Collaborating agency : Bangladesh Academy for Rural Development (BARD),comilla.
Activities : All types of IGAs.
Approach : Group. A group consists of 7-10 members.
Term : ST.
Security :

a) Hypothecation of goods.
b) Group guarantee.
c) Lien of group savings.

Rate of interest : 11%
Disbursement : Disbursement is made in cash or through group's savings account.
Repayment : Loan is repayable in installments (weekly/monthly etc.) It depends on the nature and purpose of loan.
Delegation :

(Fig. in Lac.)

Max.0.80 per group 2.00 3.00 4.00 5.00 5.00 5.00
Related Circular/letter : Banking plan/work manual এবং পত্র নং ঋবি-৪/এসএফডিপি কাঃ নিঃ/৯৮ তাং-১৬-০৯-৯৮ই

3.Swanirvar Credit Scheme -1978

Collaborating agency : Swanirvar Bangladesh
Area of operation : : 247 unions of 87 Upazillas. 167 branches are designated.
Major activities under credit : : Off-farm IGAs..
Approach : : Group. Each group consists of 5 members.
Appraisal : : Amount of loan is determined on the basis of activities & prevailing market rate. ( Maximum Tk.40,000/- per member).
Security : : a) Hypothecation of goods.
b) Group guarantee.
c) Lien of Group savings.
Rate of Interest : : 11%
Disbursement : : Disbursement is made in cash.
Repayment : : Loan is repayable with interest by 52 weekly installments.
Delegation : : Concerned Branch Managers sanction loan subject to the recommendation of credit supervisor/unit manager of Swanirvar Bangladesh.
Related circular/letter : : As per work manual of Swanirvar credit program.

  1. Co-operative credit for rural poor-1980
Collaborating agency : BRDB(Bangladesh Rural Development Board).
Area of operation : Noakhali, Luxmipur & Feni District.
Objectives : Financing to the co-operative members of primary societies ( eg. Farmer's society, Women's society etc.) under 2-tier co- operative.
Major activities under credit : Crop & other different production oriented income generating activities.
Proposal : Co-operative members apply for loan to the concerned primary society. Primary society consolidates the loan applications and applies for loan to respective UCCA(Upazilla Central Co-operative Association). UCCA consolidates the society wise loan requirement and finally the UCCA applies for loan to the bank.
Appraisal : Crop- as per credit norms of SACP & other short term credit- on the basis of production plan prepared as per market price.
Irrigation & Ag.Implements- on the basis of actual market price. Maximum 80% loan is sanctioned. i.e. minimum down payment is 20%.
Security :

a) Members of managing committee of UCCA are to give guarantee individually and jointly.
b) Lien of Group share/savings.

Disbursement : Disbursement is made amongst the members of the primary societies in cash in presence of Upazilla credit committee(consists of bank, UCCA & primary society representative)
Delegation : Regional Head- upto Tk.50.00Lac/UCCA & Area Head- up to Tk. 1.00 crore/UCCA for single instance.
Reference circular/letter : Agreement between Janata Bank Limited & BRDB

  1. Lending through NGOs -1996
Target Group : Poor members of self-help groups(SHGs) organized by NGOs.
Objectives : In case of individual lending maximum coverage and constant supervision is not always possible for a bank branch. Therefore, Lending through NGOs are much cost effective. On the basis of this observation, bank has initiated this linking credit program with NGOs.
Proposal :

Following criteria are to be considered during processing of the NGO- loan proposals:
i) NGO must have registration from the competent authority ( e.g. Ministry of women affairs, Social Welfare department, NGO-Bureau, Registrar joint stock company etc.).
ii) In the articles of association/by-laws of the concerned NGO there must be provision of taking loan from any financial institutions/banks.
iii) The NGOs concerned have their own credit program for poverty reduction.
iv) They must have good tract record.
v) They must be able to provide the equity and security of loan.
vi) From the last year bank has widened NGO- Credit program by opening another window/ product line named JB-CDF (Credit & Development Forum an apex body of NGOs) NGO credit .

Security :

a) Mortgage of properties( 11/2 times of loan)
b) If the NGOs are not able to arrange mortgage of property in that case they are to build up a guarantee fund A/C equivalent to loan limit. Initially 30% - 40% of the fund to be raised before disbursement of loan. Rest of the fund to be raised gradually (as decided by bank- weekly/ fortnightly basis) within the loan period.
c) For CDF-NGOs, no such collateral is required. In this case CDF provides guarantee.
d) Members of the Executive Committee of the NGO are to give guarantee individually and jointly.

Disbursement : Disbursement is made in installments through their savings/current account.
Delegation :

Loan is sanctioned at Head Office level up to Tk. 20.00 Lac without security and with security Tk.50.00 lac by MD. Above Tk.20.00 lac without security and above Tk. 50.00 lac with security by Board.

Rate of interest : 11%
Repayment : To be repaid by fortnightly/monthly installments within 1 1/2 -- 3 years.
Related Circular/letter : : RCD Cir.5,6,26 Dt. 03/01/08, 28/02/10

  1. Grain Storage credit- 1991
Target Group : Crop producers( Small & Marginal farmers)
Area of operation : Allocated unions of Jamalpur, Jessore, Jhenaidah, Magura, Dinajpur, Rajshahi, Rangpur, Bagura, Gaibandha and Naogaon.
Objectives : To ensure fair prices of agricultural produces and save the farmers from financial losses during the harvesting season when crops are sold at a comparatively lower price.
Appraisal :

(a) A farmer can store upto 10 quintal of cereal each.
(b) Loan will be provided 80-90% of procurement price declared by Govt. as per credit limit approved by advisory committee (project people). If price is not available in that case , on the basis of prevailing market price to be considered and loan will be determined up to 75% of market price.

Sanction : Loans are sanctioned against cereal stored in godown
Disbursement : Disbursement is made in cash
Security : Hypothecation of cereal crops stored in godown
Rate of interest : 10%
Repayment : Entire amount of loan is repayable within 6 months. For seed repayable within 9 months
Delegation : Branch Manager.
Related Circular/letter : : Ins. Cir. 185/10 dt. 09.03.2010

  1. Ghoroa Prokalpa/ Family based micro credit:
Target Group : Rural poor people male or female and should be capable to conduct the activity for which the credit to be applied for.
Area of operation : Unions under SACP(approved by H.O.).
Objectives :

(a) Accommodating maximum rural dwellers in production/ income generating activities.
(b) Making each household a " Production Farm." & thereby to make them economically sustainable.

Eligibility :

(a) Permanent inhabitant of the allotted union.
(b) Applicant must be capable and keen to conduct the concerned activity.
(c) Head of the family will execute the charge documents and will provide guarantee on behalf of the loanee members of the family.

Proposal :

(a) Any one can apply for loan from the command area of branch.
(b) Loan application to be duly & correctly filled in along with the production plan ( in a prescribed form).
(c) By conducting survey group pass book to be issued for the eligible family members

Appraisal :

(a) Loans are determined on the basis of credit norms/ceiling given by Head Office.
(b) Production plan/ appraisal is prepared on the basis of activities and market rate.

Sanction : Loans are sanctioned for different income generating activities.
Loan size : Maximum TK.40,000/- per family. Loan size depends on the nature of loan and varies from purpose to purpose.
Security :

(a) Hypothecation of the goods against which loan has been given.

(c) Under this program security has not been given priority. Importance has been given on close supervision , monitoring and evaluation.

Disbursement :

Disbursement is made in cash or kind through single or 2 installments.
In kind, through payment order to supplier. Purchase receipts/ documents to be kept in respective loan file.

Repayment : Repayment by fortnightly/ monthly/ half yearly installment. Mode of repayment depends on nature and purpose of credit.
Documentation : D.P. note and other charge documents.
Delegation : Branch Managers can sanction loan up to maximum 40,000/- per family.
Reference letter : ঋবি-৪/ বিনিয়োগ পরিকল্পনা/ সিই/২০০০ তারিখঃ ২৪/০৭/২০০০ ইং।

Entrepreneurship development Programs

  1. Women Entrepreneur Development Credit program.
Target Group :

Prospective women entrepreneurs those who are
(a) producing/marketing goods by themselves or through others.
(b) eager to utilize their educational/professional experience and like to set up new projects or BMRE of existing projects and need working capital.

Purpose of loan : Dress making, Bed cover, Bed sheet, Pillow cover, Embroidery, Block, Screen Printing, Doll making, Artificial flower making, Gift item, Small printing industry, Foods processing (Jam, Jelly etc.), Spices processing, Store running, Fast food item, Leather products, Jute products, Bamboo and cane products, Plastic products, Pottery, Service-oriented Tele-Phone-Fax-e-mail & computer service, Day-care centre, Nursing home, Diagnostic centre, Clinic set-up and running etc.
Eligibility of clients : The women entrepreneurs asking for loan should have minimum literacy. She should be agile, having will power & innovation traits. Women who have need based/job specific training & skill.
Appraisal : On receipt of proposal, Branch manager makes spot verification and verifies the genuineness and credit need of the entrepreneur.
Sanction/Delegation : Head Office and field level sanction the loan on the basis of market price, P.P and equity of the entrepreneur. Minimum equity/margin is 25%
Security : Personal guarantee of the applicant, Personal guarantee of the applicant's husband/father or earning members from any dears & near one's, guarantee from any known & highly acclaimed person of the society/organization to be obtained.
Disbursement : Disbursement is made in cash. But in case of procurement of machineries/equipments disbursement is to be made through pay order to the supplier of goods.
Delegation : Sanction power lies with Head Office and field level.
Rate of interest : 10%
Repayment : To be repaid in three years on monthly installment basis with a grace period of 3 months. For working capital, C.C. loan procedure is being followed.
Reference circular/letter : : RCD No. 09/08, 29/10 dt: 29/04/2008, 12/04/2010

2.Cyber Cafe

Target Group : Trained youth in computer technology.
Area of operation : 10 designated branches of Dhaka city and corporate branches-I & II of Chittagong, Khulna, Rajshahi, sylhet and Barisal divisional head- quarters.
Objectives :

(1) To create employment opportunity for the unemployed trained youth and expansion of information technology.
(2) To purchase computer, server, networking, Internet connection, Printer, Scanner, CD writer, UPS, Decoration etc.

Eligibility :

(a) Applicants must have minimum diploma degree in computer science or company formed by them.
(b) Companies having prior experiences in cyber café business .
(c) Concerned business at project area to be verified before loan sanction/disbursement. In regards cyber café's work station appraisal of viability to be considered.
(d) Age Limit: Minimum-25 yrs
Maximum- 65 yrs
(e) The applicant who can repay monthly loan installment excepting the 1/3 of his monthly income.

Proposal : Loan proposal has to be submitted with detailed production plan.
Appraisal : On receipt of proposal, Branch manager makes spot verification and verifies the genuineness & credit need of the applicants.
Sanction : Head Office sanctions the loan for expansion & setting up of cyber café (for purchase and installation of Computer, Server, Net working, Internet connection, Printer, Scanner, UPS & cost of decoration etc.). Minimum equity/margin is 40%.
Security :

(a) Loans up to Tk. 3.00 Lac, no collateral is required and above Tk. 3.00 Lac collateral is required (1.5 times of loan).
(b) In case of no collateral , advance dated cheques (one for each installment and additional one) are to be taken.
(c) Hypothecation of computer and all other equipments
(d) In case of no collateral security, 3rd person guarantee is required.

Documentation : D.P note & other charge documents.
Disbursement : Disbursement is to be made in cash by installments. Purchase voucher/receipts to be kept in respective loan file.
Delegation : Sanction power lies with Head Office
Designation Delegation of power without collateral Delegation of power with collateral
MD 3.00 Lacs 10.00 Lacs
DMD 3.00 Lacs 7.00 Lacs
GM 3.00 Lacs 5.00 Lacs
Rate of interest : 12%
Repayment : To be repaid in 36 monthly installments, starting next month from disbursement.
Reference circular/letter : RCD No. 287 dt: 30/06/2005

3.Doctor's Loan Scheme:

Target Group : MBBS or its equivalent degree holders registered Doctors like Medical Practitioners, Eye Specialist, Cardiologists, Surgeons, Dentists etc, any group of doctors or any institution/company formed by the doctors may apply for availing this loan in the bank's prescribed form.
Area of operation :

(a) All branches of divisional head quarters
(b) All corporate branches-I & II
(c) All main branches of district towns.

Objectives :

(a) Inducing health services through all over the country.
(b) To create employment opportunity of Doctors .
(c) Making Chamber and purchase of required machineries and equipments.

Eligibility :

(a) The aforesaid categorized doctors must possess valid approval or license for general practices from the competent authority.
(b) Those doctors who are not fully engaged may get preference for enjoying this new facility.
(c) Age Limit: Minimum-25 yrs
Maximum- 65 yrs
(d) The doctors who can repay monthly loan installment excepting the 1/3 of his monthly income.
(e) Experience: 2 yrs.

Proposal :

Loan proposal has to be submitted with detailed production plan.

Appraisal : On receipt of proposal, Branch manager makes spot verification and verifies the genuineness and credit need of the applicants.
Debt-Equity Ratio : 80:20(Minimum).
Security :

(a) In case of no collateral security, advance dated cheques (one for each installment and additional one) are to be taken.
(b) Guarantee from the person acceptable to bank to be obtained in case of loan without collateral/Original certificate of degree
(c) Personal guarantee of borrower's husband/wife/parents/mother/father/adult children to be obtained.
(c) Hypo. of all furniture & machineries of chamber.
(d) Original copy of license of general practitioner to be obtained.
(e) In case of group loan, one person will give guarantee for another.
(f) Having been verified certificate/license/guarantee submitted by applicants carefully, these to be obtained.
(g) The equipment purchased shall duly be insured covering all risks.
(h) Personal guarantee of borrower's husband/wife/parents/adult children to be obtained.
(i) Encashable securities equitable to loan or mortgage of landed property (1.3 times of loan) to be obtained.

Sanction : Loans are sanctioned on the basis of production plan at field level and Head Office as per delegation.
Documentation :

D.P note and other charge documents.

Disbursement : Disbursement is to be made in cash by installments. Purchase voucher/receipts to be kept in respective loan file.
Delegation :

Designation

Delegation of Power

Without collateral With collateral
MD 5.00 lac Taka 10.00 Lac Taka
DMD 4.00 ,, 8.00 ,,
GM 3.00 ,, 6.00 ,,
DGM 2.00 ,, 4.00 ,,
AGM(Corp.2, Regional Office) 1.00 ,, 2.00 ,,
Rate of interest :

15%

Repayment : To be repaid in 5 years in 57 monthly installment with a grace period of 3 months.
Reference circular/letter : RCD No. 287 dt: 30/06/2005

4.Small business development loan scheme

Target Group : Those who are running the business by purchasing shop's possession or renting for a specific time.
Area of operation :

Corporate branches-I & II. Besides these, all branches of divisional and old districts towns and main branches of new districts towns .

Objectives : Expansion of existing shop & providing term loan/working capital to existing shop
Eligibility : Those unemployed educated youth who have no ability to give collateral but involved in businesses such as all types of handicrafts, book, crokeries, all kinds of furniture, grocery & stationery shops, departmental store or any other income generating activities.
Proposal :

Loan proposal has to be submitted with detailed production plan.

Appraisal : On receipt of proposal, Branch manager makes spot verification and verifies the genuineness and credit need of the applicants.
Sanction : Loans are sanctioned on the basis of production plan at Head Office level as per delegation.
Security :

(a) Loans up to 5.00 Lac, no collateral is required in both term loan & working capital. Up to maximum Tk. 25.00 Lac, collateral is required in both term loan & working capital (1.5 times of loan).
(b) In case of no collateral, 3rd person guarantee is required.
(c) Shop's possession right/ rental agreement to be obtained with consent letter of house/shop's owner.
(d) In case of group loan, one person will give guarantee for another.

Debt-Equity Ratio : 70:30
Documentation : D.P. note and other charge documents.
Disbursement :

Disbursement is to be made in cash by installments. Purchase voucher/receipts to be kept in respective loan file.

Repayment : To be repaid in 5 years in 60 monthly installment in case of term loan. For working capital C.C. loan procedure is being followed.
Rate of interest : 12%
Delegation : Sanction power lies with Head Office.
With Collateral Without Collateral
(a) MD : 25.00 Lac Taka 5.00 Lac Taka
(b) DMD : 15.00 Lac Taka 4.00 Lac Taka
(c) GM (HO/DO) : 10.00 Lac Taka 3.00 Lac Taka
(d) DGM (AO/RO/Corp.-1) : 2.00 Lac Taka

-

(e) DGM (AO/RO/Corp.-1) : 1.00 Lac Taka

-

Major activities under loan :

Handicrafts, Book, Crokeries, All kinds of furniture, Stationary shop , departmental store or any other income generating activities.

Reference circular/letter :

RCD Cir. No.280 dt: 17/06/2004, 07/08 dt. 12.02.08
Letter No. এমইএন্ডএসপিডি/ক্ষুদ্র ব্যবসায়ী উন্নয়ন/২০০৪ তারিখঃ ০৪/০৮/২০০৪ইং।

Special Credit Program:

1.Seed Development Programme

Target Group :

Farmer's Seed Company (FSC).

Area of operation :

FSC are located in the following 10 districts:
Gopalgong, Naogaon, Bhola, Sherepur, Maulvibazar, Dinajpur, Chuadanga, Jhenaidah, Patuakhali and Coxs bazar.

Objectives : To extend loan to farmer's seed company for procurement, processing & marketing quality seeds for the development of private seed sector.
Eligibility :

(a) The concerned (FSC) are to be duly registered under the companies act,1994 of Bangladesh.
(b) The shareholders and directors of such companies must be residing in the concerned locality.
(c) The loan taking FSC must maintain their fund/deposit company's account with the financing branch.
(d) The concerned (FSC) or its directors/shareholders are not defaulter loanee of other bank/financial institution.

Proposal :

Loan proposal has to be submitted with detailed production plan.

Appraisal : On receipt of proposal, Branch manager makes spot verification and verifies the genuineness and credit need of the applicants.
Sanction : Loans are sanctioned on the basis of production plan at Head Office level as per delegation.
Security :

(a) The guarantee fund to be provided by GTZ will be treated as collateral security.
(b) Hyp. of crops/goods/assets to be produced/procured with loan money.
(c) The members of the Board of Directors shall provide to the bank a group guarantee stating their joint and individual liability to repay the loan.
(d) Seeds/goods/assets procured by bank loan and stored by the company shall duly be insured as per bank's clause covering all risks.

Documentation :

(a) List of all share holders with full particulars.
(b) Duly attested copy of Memorandum & Articles of Association.
(c) Duly attested photographs of all directors.
(d) Resolution of the Board of Directors with decision regarding taking loans as per sanction.

Disbursement :

Loan to be disbursed for procurement of different seeds/cereals as per schedule. Purchase voucher/receipts to be kept in respective loan file.

Debt-Equity Ratio : 75:25
Delegation : Sanction power lies with Head Office.
(a) DGM : 10.00 Lac Taka
(b) GM : 15.00 Lac Taka
(c) DMD : 20.00 Lac Taka
(d) MD : 25.00 Lac Taka
Repayment :

Loan for each crop shall be repaid within 9 months from the date of disbursement of that item. If any FSC for genuine reasons is not able to repay the loan in time, the branch may allow a grace period of maximum 3 months.

Major activities under loan : Credit will be provided for mainly- Wheat, Boro, Aus ,Paddy and other potential crops of the locality.
Rate of interest : 10%
Collaborating agency :

Seed Business Promotion Project/GTZ

Reference circular/letter : As per agreement between Janata Bank Limited & GTZ

  1. Loan for Handicapped/disabled people
Target Group :

Physically handicapped/disabled people who has the expertise and intelligence to conduct the economic activity.

Area of operation : All branches up to union level.
Objectives :

(a) To raise the income and living standard of handicapped people by self employment.
(b) To help build self reliance and to bring them into the mainstream of economic activities.
(c) To provide assistance for increasing efficiency at work and in their own professions.

Proposal :

(a) Loan application to be duly & correctly filled in along with the production plan ( in a prescribed form).
(b) By conducting survey pass book to be issued for the eligible people.

Appraisal : Amount of loan is determined on the basis of activities. Initially amount of loan will be maximum TK. 25,000/-. Later amount of loan will be fixed up to TK. 50,000/- on the basis of the efficiency level.
Eligibility :

(a) The age of the handicapped borrower should be at least 18 years.
(b) The borrower/entrepreneur should be capable and keen to conduct the concerned project/activity. If any individual is physically handicapped but he has the expertise and intelligence to conduct the economic activity for which he has applied for in those cases the borrower/individual will be selected as eligible for the credit to conduct the activity through his or her wife/husband/father/ mother/brother/sister.
(c) The handicapped individual who have training on the concerned subject/project from Government/private organization

Documentation :

D.P. Note and other charge documents.

Disbursement : Disbursement of credit on installment basis( one or more) as per requirement and will depend on nature and sector of the credit policy.
Repayment : Loan repayment on weekly/fortnightly/monthly/quarterly basis will depend on nature, sector and income generating kind of the credit facility.
Rate of interest : 10%
Major activities under credit : All income generating activities suitable for disabled people such as fish cultivation, milking cow, goatery, beef fattening etc.
Reference circular/letter : RCD Cir. No.- 270 dated: 2002

Other Credit Programs:

  1. Credit for Employees-2000
Target group :

Employees of different Govt/Semi Govt./Autonomous body/University/College/School/NGOs etc.

Objectives : To meet up the emergency/personal need (e.g. treatment, marriage, travel cost, maternity or for specific activities (e.g. agri. or non agri. purposes etc.) of employees.
Eligibility :

(a) The employees of above mentioned organizations excepting Janata Bank Limited.
(b) Preference to be given those who are taking salary from our branches.

Appraisal :

(a) In case of salary is being disbursed from Janata Bank Limited branch, 12 months basic salary or maximum TK.1,00,000/- whichever is lower may be sanctioned.
(b) If salary is not disbursed from Janata Bank Limited branch, 6 months basic salary or maximum TK. 50,000/- whichever is lower may be sanctioned.

Sanction :

For sanctioning loan following papers to be obtained:
(a) Employer's certificate.
(b) Salary certificate/statement from the concerned organization.
(c) Name of nominee (Husband/Wife/Children etc.) to be mentioned in the A/C opening form.

Security :

(a) Personal guarantee of borrower's husband/wife/parents/adult children or any other 3rd party guarantee to be obtained.
(b) 24 for 24 monthly installments and additional one-total 25 advance dated cheques to be obtained.

Rate of interest : 13.50%(Changeable)
Repayment : To be repaid in 2(two) years at equal monthly installment
Reference circular/letter : RCD Cir. No.- 287 dated:- 30-06-2005

  1. Consumer Credit Scheme-2003
Target group : Fixed income earners.
Objectives :

(a) To improve standard of living .
(b) To support purchase of various consumer durables.
All branches upto Upazilla level.

Eligibility of Clients :

(1) Permanent officer/staff working at Govt /SemiGovt./Autonomous body/ Nationalised Bank/University(private/public)/Training institute/Research institute/Private bank/Insurance company/International organization/Multinational company.

Sanction : RO/AO/DO level. as per delegation.
Security :

(a) Hypothecation over the consumer durables.
(b) In case of Janata Bank Limited employee, personal guarantee from an employee( equivalent or upgraded ranking employee). Such guarantee to be countersigned by the competent authority. Officer/staff can give guarantee for one or more loan. But sum total of one or more guarantee will not be more than non-encumbered provident fund. Loan giving authority is to be confirmed to the effect that the applicant has the capacity to repay bank loan.
(c) Lien of provident fund/gratuity.
(d) Personal guarantee of borrower's husband/wife/parents/adult children or any other 3rd party guarantee to be obtained etc.

Rate of interest : 14%(Changeable).
Repayment : To be repaid in 3 years at monthly installment
Main activities under credit :

Personal Computer, Scanner, Air conditioner, Air cooler, Water cooler, Water pump, freeze, Television, Radio, Furniture and any other items acceptable to Janata Bank Limited.

Reference circular/letter : RCD Cir. No. 287 dated: 30-06-2005

3.Credit for Trained Youth Program

Objectives : For creation of self employment & poverty reduction
Area of operation :

Throughout the country

Activities & Appraisal : (a) Trained Youth from “Directorate of Youth”. Initially 54 Income Generating Activities (IGAs) and other activities approved by Divisional/Area Office.
(b) Production plan/appraisal is prepared on the basis of activities and market rate.
(c) Loans are determined on the basis of credit norms/ceiling given by Head Office or present market rate subject to the prior approval from the concerned authority.
Associate Agencies :

Bank's own program.

Approach : Individual.
Term : ST & MT.
Security :

(a)Up to Tk. 80,000/-, no collateral is required. Above up to 5,00,000/- collateral is required.
(b) Personal guarantee in favor of loanee from an acceptable person.
(c) Hypothecation of goods.
(d) Mortgage of land/property (1.5 times of loan) if applicable.

Disbursement : Disbursement is made in cash by installments. Purchase receipts/documents to be kept in respective loan file.
Repayment : Repayable by onetime/installment(fortnightly/monthly/quarterly/ half yearly). Repayment period and mode of repayment is fixed depending on the nature of activities & generation of income.
Rate of Interest :

10% (changeable).

Delegation : Delegation of business powers (in lac)
Branch Managers AGM DGM GM
Gr-4 Gr-3 Gr-2 Gr-1
0.50 0.60 0.70 0.80 1.00 3.00 5.00
Related circulars/letters : RCD- 44/14 dt: 03-08-2014

4.Village Women Employment Credit Porgarm

Objectives : For creation of self employment of village women & poverty reduction. Village women those who are (a) producing/marketing goods by themselves or by others. (b) Distress women/unemployed women eager to set up Income Generating Activities (IGAs) and need working capital.
Area of operation :

Throughout the country

Activities & Appraisal : (a) Initially 82 Income Generating Activities (IGAs) and other activities approved by Divisional/Area Office.
(b) Production plan/appraisal is prepared on the basis of activities and market rate.
(c) Loans are determined on the basis of credit norms/ceiling given by Head Office or present market rate subject to the prior approval from the concerned authority.
Associate Agencies :

Bank's own program.

Approach : Applicant must be Bangladeshi & a permanent resident of the respective area, minimum 20 years old. Individual or group (3-5) wise can approach for loan. Applicant should have primary knowledge/experience about the field asking for loan.
Term : ST & MT & working capital (CC-H) for project/business.
Security :

(a)Up to Tk. 50,000/-, no collateral is required and above up to 5,00,000/- collateral is required.
(b) Personal guarantee in favor of loanee from an acceptable person.
(c) Hypothecation of goods.
(d) Mortgage of land/property (1.5 times of loan) if applicable.

Disbursement : Disbursement is made in cash/kind by installments. Purchase receipts/documents to be kept in respective loan file.
Repayment : Repayable by onetime/installment (fortnightly/monthly/quarterly/ half yearly). Repayment period and mode of repayment is fixed depending on the nature of activities & generation of income.
Rate of Interest :

10% (changeable).

Delegation : Delegation of business powers (in lac)
Branch Managers AGM DGM GM DMD MD
Gr-4 Gr-3 Gr-2 Gr-1
0.20 0.30 0.40 0.50 1.00 3.00 4.00 5.00 5.00
Related circulars/letters : RCD- 42/14 dt: 26-01-2014

  1. Refinance scheme for Small/Marginal?Landless farmers & Marginal/Small traders those have A/C of Tk. 10/- financial inclusion program
Target Group : (a) Small/Marginal/Landless farmers those have maximum 2.47 acre of land.
(b) Marginal/Small traders having low income.
(c) Village/ Mahalla based Small/Micro enterprunears & professionals.
(d) Women & Handicapped/disabled people.
(e) NGO-MFI Linkage program.
Area of operation :

Throughout the country

Activities & Purpose of loan : : Applicant should have Bank A/C of Tk. 10/-
(a) Income Generating Activities (IGAs)
(b) Agriculture/Fisheries/Nursery etc.
Associate Agencies :

Bank's own program.

Approach : Individual/group (3 to 10)
Term : ST & MT
Security :

(a) Up to Tk.50,000/-, no collateral is requird.
(b) Personal gurantee in favour of loanee from an acceptable person.
(c) Hypothecation of goods. (d) group guarantee

Disbursement : Disbursement is made in cash/kind by installments. Purchase receipts/documents to be kept in respective loan file.
Repayment : Repayable by onetime/installment (fortnightly/monthly/quarterly/half yearly). Repayment period and mode of repayment is fixed depending on the nature of activities & generation of income
Rate of Interest :

12% (changeable).

Related circulars/letters : RCD - 43/14 dt: 22-07-2014

  1. কেঁচো সার ঋণ উৎপাদন কর্মসূচী:
উদ্দেশ্য : ক) জমির উৎপাদন ক্ষমতা এবং এর উপযুক্ত গঠন প্রকৃতি ও উর্বরতা সংরক্ষণসহ রাসায়নিক সারের উপর নির্ভরশীলতা কমানো । (খ) পরিবেশ বান্ধব/গ্রীণ ব্যাংকিং পলিসি বাস্তবায়ন
ঋণ বিতরণকারী শাখা :

সকল শাখা

ঋণসীমা ও সর্বোচ্চ সিলিং : (ক) ৫০,০০০/- টাকা পর্যন্ত সহজামানত বিহীন । ব্যাংকের নীতিমালা অনুযায়ী সহজামানত গ্রহণ সাপেক্ষে সর্বোচ্চ ঋণসীমা = ৩,০০,০০০/- টাকা ।
সহযোগী সংস্হা । :

ব্যাংকের নিজস্ব কর্মসূচী

ঋণ প্রাপ্তির যোগ্যতা : একক ব্যক্তি অথবা যৌথ ভিত্তিতে উৎপাদনকারী পরিবার/প্রতিষ্ঠান ।
ঋণের প্রকৃতি : স্বল্প/মধ্য মেয়াদী (১-৩ বছর) ।
ঋনের জামানত :

(ক) আবেদনকারীর স্ত্রী/স্বামী/উর্পাজনশীল মাতা/নিকট আত্মীয়ের ব্যক্তিগত গ্যারান্টি। (খ) ঋণের অর্থে ক্রয়কৃত গাভী/গরু, কেঁচো এবং উৎপাদনকৃত কেঁচো সার ব্যাংকের নিকট হাইপোথিকেশনে থাকিবে। (গ) ঋণের দেড়গুণ মূল্যের সম্পত্তি/জমি ব্যাংকের অনুকূলে রেজিষ্টার্ড মর্টগেজ থাকিবে।

ঋণ বিতরণ পদ্ধতি : প্রয়োজন অনুসারে ০১ থেকে ০৩ কিস্তিতে বিতরণযোগ্য ।
পরিশোধের সূচি : ঋনের মেয়াদের মধ্যে ষান্মাসিক কিস্তিতে পরিশোধযোগ্য ।
সুদের হার :

১২% ।

ঋণ মঞ্জুরী ক্ষমতা : (লক্ষ টাকায় )
শাখা ব্যবস্হাপক এজিএম ডিজিএম জিএম
০.৫০ ১.০০ ২.০০ ৩.০০
Related circulars/letters : RCD-41/13 dt: 18-11-2013

Agro-based Industries.

The agro-based industries (e.g. agro-products & food processing units, vegetable/potato storage, agri.-products storing and marketing, rice/flower mill etc.) have been considered as thrust sector..

Financing in this sector following aspects are to be considered:

(a) Selection of entrepreneurs-
-solvency,
-good will,
-professional and technical experience,
-capable to provide equity and security etc.

(b) Selection of projects-
-cost- effective & viable,
-suitable in respect of communication and infrastructural facilities,
-demand of the produced goods & favourable marketing facilities.

(c) Debt-Equity Ratio- minimum margin 40% (Working Capital), 50:50-Project loan. (15% of total project cost as land value or actual value of land whichever is lower to be adjusted with the total equity)..

(d) Land development, link road development, electricity connection etc. are to be completed from entrepreneur's own source.

(e) Recommendation from branch and regional office in respect of loan sanction is required.

(f) Loan is to be sanctioned after completing technical and financial analysis of the project by the Head Office.

(g) Equity is to arrange at a time or phase-wise as decided by H.O.

Security:
i) Project loan: a)1:1-the value of mortgaged property to be equivalent of loan

b) Hypothecation of machinery & equipments (floating assets of the project).

Working capital: a) 1:1.5 - the value of mortgaged property to be equivalent to 1.5 times of loan..

  1. b) Hypothecation of goods produced & procured.

Delegation :

AGM

DGM

GM

DMD

MD

a. Project Loan

Public Ltd Co.

--

40.00

60.00

80.00

100.00

Private Ltd Co.

--

40.00

60

80.00

100.00

Individual

--

40.00

60.00

80.00

100.00

b. W/C Loan

Public Ltd Co.

20

35.00

50.00

100.00

200.00

Private Ltd Co.

5.00

15.00

30.00

35.00

50.00

Individual

5.00

15.00

30.00

35.00

50.00

Ref: Circular/Letter: Ins. Circular 3401 Dt: 05/03/02
Ins. Circular 3449 dt: 10/08/02
Ins. Circular 185/10 dt: 09/03/2010