SME – Midland Bank PLC.

MDB NIRMAN

Interest bearing current deposit account for micro, cottage, small & medium enterprises (MSMEs), emerging corporate, agri and special segment customers

Title		Details
Eligibility		Any Bangladeshi citizen with photo ID document as applicable CD account Age 18 years and above
Availability		All MDB Branches
Minimum initial deposit amount		BDT 10.00 (For Only Individual farmers/farm enterprise). BDT 1000.00 (For Others)
Loan Size		Loan Limit to be as flows: For Semi-pucca and one storied building: Maximum Loan Limit Tk.50.00 lac. For Multi storied building: Maximum Loan Limit Tk.200.00 lac. *[Multistoried building stands as RCC structured building / more than 01 storied building].
Determinants of loan amount		Loans under this product will be available across the country through various branches/sales outlets of MDB.
Determinants of loan amount		For multi storied building: In case of construction maximum loan amount to be 70% of the estimated cost but it will not exceed 70% of the market value of the land and it will not also exceed the forced sale value of the land [whichever is minimum]. In case of purchase, maximum loan amount to be 70% of the market value but not exceeding Forced Sale Value of the floor space. For semi-pucca building and one storied building: Maximum Loan amount to be 70% of the estimated cost or maximum 70% of the forced sale value of the land, whichever is lower. Additional property may also be taken for security coverage. Secured Loan (With 100% Cash Collateral) amount will be maximum 90% of the FD/MSS value having lien with MDB FD/All types of Savings Schemes/Islamic saving scheme/Islamic Term Deposit/ WEDB (Issued by MDB).
Tenor of the loan		For semi-pucca building: Maximum 08 years. For multi storied building: Maximum 15 years.
Grace period		In case of financing construction purpose, grace period/moratorium period can be allowed based on banker-customer relationship. Grace Period/Moratorium period can be given for maximum 06 (six) months but total tenor of the facility can’t exceed 08 years for semi pucca building and 15 years for multi storied building/or sanctioned tenor. During grace period/moratorium period, interest can be served monthly. Otherwise it should be realized with remaining installments. Remaining amount, if any, to be adjusted with last installment.
Mode of financing		Direct Financing only.
Mode of disbursement		Disbursement will be made by debiting the loan account and crediting the same to client’s MSME CD account named MDB Abiram or directly to the vendor by MDB A/C Payee Payment Order/Demand Draft/transfer to vendors account with MDB as per request of the client/approval terms. Loan disbursement to be phase wise [in case of construction] subject to satisfactory utilization of previous phase of disbursement/s and visit report by Relationship Manager (RM).
For Top-up and takeover		Minimum 12 EMI to be paid.
Repayment behavior		Repayment of existing credit facilities of applicant’s/associated company with MDB/ Other Bank or FIs: Max two 30DPD+ in last 12 months is allowed. No 60DPD+ in last 12 months. No over dues at the time of applying/ sanctioning the facility.
Income proof		Computation of income for applicant: Account statement/ Sales statement/rent receipt/rental agreement. Proof of ownership documents is mandatory for considering rental income of any property. If the rented property is jointly owned with other(s) who are not the applicant(s) of the loan proposal, then proportionate share of the rental income will be considered for assessment. The rental income should be verified by branch / 3rd party verification agency. Rental income will be considered subject to submission of ownership documents. If valid rental agreement and proper reflection in bank statement is not found, in such cases, rental verification to be done with building Video/pictures and details of the building which should include – Land & Building area, apartment/Room size, apartment per floor, Number of rooms (in case of semi-pucca) etc. Rental income to be verified by the respective Branch/sourcing channel. However, BM/Unit Head/Ho SME Banking Division mandatorily counter-sign on the verified income confirmation by his/ her Branch/Unit staff. Rental income from Semi-Pacca/Tin Shed (both commercial and residential) building will be considered. However, clients are solely depending on projected rental income will not be allowed for financing. Valid ownership document should be provided, such as: Property ownership deed. Mutation paper copy. Ground rent receipt (Khajna). Latest municipal tax payment receipt (If the property located at municipality area) etc.
Minimum Monthly Income		For semi-pucca building: Minimum Tk.30,000.00 per month. For multistoried building: Minimum Tk.50,000.00 per month.
DBR		DBR to be calculated on applicant income only. DBR ratio will be 60%. In case of 100% cash backed facility secured against MDB FDR or other Deposit Product, no DBR calculation is required.
Business age		Business Age to be 02 years supported by trade license.
Age of the building		Including the tenor of the loan it should not cross 25 years of age. However, for 100% cash backed facility it may be relaxed on case to case basis depends on Banker Customer relation.
Age of the applicant		21-70 yeas at the end of the loan tenor. For 100% cash backed facility secured against FD/all types of saving schemes/Islamic saving scheme/Islamic term deposit/WEDB issued by MDB) maximum tenor is 75 years at the end of loan tenor.
Security valuation		Enlisted MDB Property Appraisal Company will be appointed to physically verify and value all properties as per standard templates. The valuation report, amongst other things must contain certifications on the following: Date of site visit. Status of construction. Market rate. Present value of the property (with depreciation if applicable). Forced Sale Value at present status. On completion value of the property. Forced Sale Value on completion. Market value of the property. Current cost of construction per square feet with the amenities suggested in the apartment / house. Photographs of the property inspected. Tentative date of hand over [where applicable]. % of work completion at the time of evaluation. Cost breakdown in terms of value of land & the structure. Deviation (floor to floor and column to column) from the approved plan.
Deviation		For multistoried building having RCC construction following deviation is allowed: Commercial Space: “Column to Column” deviation acceptance limit -25%. “Floor to Floor” deviation acceptance limit – 35% Entire Land with Building: “Column to Column” deviation acceptance limit -25% “Floor to Floor” deviation acceptance limit – 40% If applicant is the 100% owner of the land, then deviation will not be an issue. However, if deviation is greater than 25% [Column to Column] & 40% [Floor to Floor] then loan amount will not exceed 90% of FSV of only land.
Additional facility		Multiple facilities can be offered against the same property or different property but combined exposure cannot exceed Tk.50.00 lac for semi-pucca building and Tk.200.00 lac for multi storied building. Combination of both semi-pucca and multi storied is allowed but in that case maximum limit shall not exceed Tk.200.00 lac.
Mode of repayment		Repayable by installments (monthly) over the loan period from rental income/ business income/ own sources.
In case of purchase of floor/commercial space /shop/ business premise/labor shade/market		Loan is allowed only to purchase ready floor/ commercial space /shop/ business premise/ labor shade/ market.
Deferral to purchase of free hold property		Applicant(s) will provide an undertaking to the bank for providing Irrevocable General Power of Attorney (IGPA) in favor of the Bank within 60 days from disbursement of the Nirman Term Loan. Nirman Term Loan will be disbursed and pay order will be issued and handed over in favor of the seller of the property on the day of sale deed registration & Registered Mortgage completion. The token of the original registered sale deed & Registered Mortgage will be kept in the bank’s possession before handing over the pay order.
Deferral to purchase of lease hold property		Applicant (s) will provide an undertaking before disbursement on BDT 300 Non-Judicial/Adhesive stamps to the bank for providing Registered Mortgage and Irrevocable General Power of Attorney (IGPA) in favor of the bank within 60 days from the disbursement date of the Nirman Term Loan. Nirman Term Loan will be disbursed and pay order will be issued and handed over in favor of the seller of the property on the day of sale deed registration. The token of the original registered sale deed & Undertaking for completion of Registered Mortgage and Irrevocable General Power of Attorney (IGPA) in favor of the bank within 60 days from the disbursement date of the Nirman Term Loan, in case of Leasehold property.
Insurance		At own cost of the borrower General insurance for entire loan amount is mandatory for every Nirman loan except 100% cash covered loan. Fire insurance is mandatory for all property. Flood & cyclone insurance is applicable for flood & cyclone prone area. However, exceptions are allowed. RDD or SME Banking Division will decide regarding the flood and cyclone prone are on case to case basis, if required. Policy should be assigned in favor of Midland Bank Ltd.
Loan Application fee/ other charges		As per approved schedule of charges of the bank along with approved MDB SME Policy based on BRPD Circular No - 11 dated 10-Jun-2021.
ICRR		ICRR, to be conducted as per Bangladesh Bank guidelines for ICRR (where applicable).
Approval authority		As per delegation authority. Once a loan is approved, it will remain valid for disbursement until 03 months from the date of approval.
Other Documents		For multi-storied building, approval plan from competent authority (such as RAJUK/City Corporation/Pourashava/ CDA/others) must be obtained against construction of the building. NOC/Mortgage permission from the competent authority must be obtained, such as RAJUK, RDA, CDA, BSCIC etc. In case of taking registered mortgage at renowned large shopping mall at urban area, if the ownership is transferred through Saf-kabla Deed and duly registered by the respective Sub Registry Office, submission of building approval plan from competent authority may not be mandatory but the approval letter of the building plan from the competent authority must be submitted. In case of loan take over from other Bank’s/NBFI’s, 15 days deferral may allow for execution of Registered Mortgage and Irrevocable General Power of Attorney (IGPA) in favor of the bank.
Credit process and compliance		Client’s assessment, loan application process, credit appraisal, approval process for disbursement, recovery & monitoring, etc., will be as per bank’s norms. The PPG may be changed/amended from time to time and to be complied accordingly. Any change/directive of Bangladesh Bank from time to time will be inclusive of the PPG.
Not-target Customers		Non Targeted customer Private Transport Sector. Rent-A-Car Business. Involve in Print/Electronic media production, media personality (Example-Journalist, media producer, news presenter etc.). Film Maker/Producer, Celebrities, freelancer, Photo-Journalist etc. Business of Non-reputed publications Legal Professionals (Example-Lawyers) Public figure & individuals having political affinity Manpower business, Travel agents lower level. C & F agent lower level. Jewelry business (gold business). Ethically, Socially, environmentally sensitive business, Conventional brick field, ship breaking business. Cable TV, local broadband providers/operator. Money Changer/Exchange business. Informal Counselling business (Marriage, Astrologer, student counselling etc.). Multipurpose co-operative firms. Arms dealer, trader of military equipment’s. Informal Brokerage business (Land selling, stock, Old Car & property). Informal educational institutes (coaching, training Centre etc.). Multilevel marketing business. Note: Except for existing MDB facility holder with smooth credit history in last 1 year. Except for 100% cash covered facility. ** On Case to case basis management may allow exception of Non Targeted customer upon obtaining strong justification.
Other Issues		Quotation for renovation (above Tk.15.00 lac)/construction (for multi-storied building) prepared by Authorized Engineer must be signed by the customer (Not more than one month old). The quotation must be verified through the Bank’s branch manager/Unit Head/HoSME Banking Division or enlisted third party valuation company.

MDB IT UDDOG

MDB IT Uddog a custom-made loan product especially developed for IT based entrepreneurs. IT entrepreneurship is one of the most potential differentiating factors for the long run economic growth rate among countries. That is why we should care deeply about how to make in happen in an efficient and inclusive manner. Entrepreneurship is just another way in which young people who make a living, and is susceptible to the fault line of the gender-segregated division of work. To serve this sector MDB IT Uddog been designed.

Title		Details
Target Customer		This product will meet up funding requirement of the prospective target customers and contribute to achieve the following objectives: To improve IT based knowledge and service what make better living standard and economy To promote IT entrepreneurs To promote young generations To promote small scale IT service in rural areas To contribute sustainable economic growth To encourage young graduate for self-employment
Objective		MDB IT Uddog is a timely venture of MDB to stand our position beside the IT Entrepreneurs. Ultimate objective of the product is to have the followings: Explore the potentiality of the IT Entrepreneurs' who have the opportunity to grow and ensure access to credit To address the call of state, Bangladesh Bank and IT community to stand beside the IT Entrepreneurs' who starve for banking facility for their development To financially empower the young IT knowledge based society It's a part of Social commitment to develop our digital Bangladesh To become one of the initiating Banks to take initiative to promote the IT Entrepreneurs' To keep strong footage for the Economic development of the country through developing the IT entrepreneurs' Portfolio Diversification
Loan category		MDB IT Uddog (TL) MDB IT Uddog (RL)
Purpose of loan		To foster development of IT sector with bank finance for working capital and fixed asset purchase including civil construction for project building/warehouse/shed etc. Working capital may be extended in the form of RL and TL while fixed assets/construction of factory building/warehouse/shedshall be financed in the form of TL.
Eligibility criteria		Tenure Of business: Minimum 02 years, It should be profit making business concern/startup business having potentials; Nature of business: IT Business; Legal form of business: Proprietorship/partnership/private limited company/ organizations having valid registrations/licenses. Nationality: Bangladeshi by birth; Entrepreneurs age: 21-60 years (applicable for sole proprietorship and partnership firms); Owners/entrepreneurs experience: 2 years of experience in any kind of business.For startup business the entrepreneur/s should have practical experience/training in the relevant area Owners/entrepreneurs capacity: To repay loan from secondary/tertiary source in addition to primary source of income; Women entrepreneurship: More than 50% share owned by women entrepreneurls (for partnership/private limited company)
Account turnover		Bank account turnover will be encouraged.
Availability		Loans under this product will be available across the country through various branches/sales outlets of MDB.
Eligibility for re-finance		Applicable as per Bangladesh Bank rule or agreement with any other re-financing or pre-financing agency/s.
Loan size		Up to BDT 5.00 crore including working capital and fixed asset finance. Loan size may be extended based on business viability and repayment capacity of the borrower.

MDB KRISHI LOAN

MDB Krishi is a structured Loan product for agri SMEs and individual farmers. Agriculture is a growth sector of Bangladesh with huge potential. There are a lot of emerging SMEs in 'agriculture which creates ample opportunity of lending with income generating opportunity. To serve this sector MDB Krishi has been developed.

Title		Details
Target customers		All entrepreneurs- individual farmers and farm enterprises which fall under micro, cottage, small & medium enterprises, emerging corporates and other special organizations engaged in promoting the agriculture sector and its sub-sectors.
Objectives		This product will meet up funding requirement of potential agri customers and contribute to achieve the following objectives. Tap the loan market of the flourishing agri sector in a focused manner Enhance productivity growth Ensure food security Reduce poverty Reduce import dependence Contribute to national GDP Create more rural employment Risk & portfolio diversification Response to the call of State Achieve bank's profitability Branding of the bank
Agriculture sector and its sub-sectors, Agriculture and Rural Credit Programs		Relevant sectors and sub-sectors of agriculture as per Bangladesh Bank SME Agri Credit Policy are as follows: Crops (paddy, wheat, maize, oil seeds, spices etc) Fisheries Livestock & poultry Agri equipment (loan given at users/farmers level) Irrigation equipment (loan given at users/farmers level) Seed production (for sales at farmers level) Crops warehouse and marketing (only for storing and marketing of own crops) Poverty alleviation and different income generating activates at rural areas Lending priority should be given to these sectors & their related sub sectors also as per Agri Credit Policy of Bangladesh Bank. Women entrepreneurs are to be encouraged. Retail customers/marginal farmers/barga-farmers (individual or enterprise) engaged in agri activities and other income generating activities for alleviation of poverty may be financed through linkage of MFI NGOs under MDB NGO Link Loan Scheme.
Loan category		MDB Krishi Loan (TL) MDB Krishi Loan (RL)
Purpose of loan		To foster development of agriculture sector with bank finance for working capital and fixed asset purchase including civil construction forshed/warehouse etc. Working capital may be extended in the form of RL and TL. While fixed assets/construction of shed/warehouse shall be financed in the form of TL. The loan will be utilized to meet up the following costs. Cost estimate to be certified by local agri officer/for cost estimate Bangladesh Bank policy (where necessary) may be followed: For crops: Purchase of quality seeds, fertilizer & pesticide, labor payment, land processing cost, maintenance cost, payment of land rent, irrigation, warehousing & marketing, purchase of machinery & equipment etc. For Fisheries: Expand ponds, hatchery, Purchase of renu pona, feed, medicine & related inputs For livestock & Poultry: Purchase of cattle/poultry, feed, medicine & related inputs, expansion of shed, poultry cage/ hatchery etc. Other cost as per estimate.
Eligibility criteria		Tenure of business: Both the existing and startup businesses/farms as well as individual farmers having potentiality are eligible for the loan; Nature of business: Agriculture; Legal from of business: Proprietorship/partnership/private limited company/organizations having valid registrations/licenses; Nationality: Bangladeshi by birth; Entrepreneurs age: 21-60 years (applicable for sole proprietorship and partnership firms); Owners/entrepreneurs experience: 2 years of experience in any kind of business. For startup business the entrepreneur/s should have practical experience/training in the relevant area' Owners/enterprenuous capacity: To repay bank loan
Account turnover		Bank account turnover will be encouraged.
Availability		Loans under this product will be available across the country through MDB Krishi Loan various branches/sales outlets of MDB.
Eligibility for re-finance		Applicable as per Bangladesh Bank rule or agreement with any other re-financing or pre-financing agency/s.
Loan size		Up to BDT 15.00 crore including working capital and fixed asset finance. Loan size may be extended based on business viability and repayment capacity of the borrower.

MDB NARI UDDOG

Women Entrepreneurship is one of the most potential differentiating factors for the long run economic growth rate among countries. That is why we should care deeply about how to make in happen in an efficient and inclusive manner. Entrepreneurship is just another way in which women make a living, and is susceptible to the fault-line of the gender-segregated division of work. To serve this sector MDB Nari Uddog been designed.

Title		Details
Target customers		Only women entrepreneurs engaged in any sort of business which falls under micro, cottage, small & medium enterprises, emerging corporates and other special organizations engaged in promoting women entrepreneurs.
Objectives		It is a tailor-made loan product for women led business, which will meet up funding requirement of the prospective target customers and contribute to achieve the following objectives: Explore the potentiality of the women entrepreneurs' who have the opportunity to grow and ensure access to credit To address the call of state, Bangladesh Bank and women community to stand beside the Women Entrepreneurs' who starve for banking facility for their development To financially empower the women society It's a part of Social commitment To become one of the initiating Banks to take initiative to promote the women Entrepreneurs' To keep strong footage for the Economic development of the country through developing the women entrepreneurs Portfolio Diversification Increase bank's portfolio and make bank's profitability 100% re-financing opportunity from Bangladesh Bank upto a certain amount Branding of the bank
Potential sectors		Business/service/manufacturing/agriJagro-based. Relevant potential sectors as mentioned in the guidelines of Bangladesh Bank SME Credit Policies and Programs may be followed for financing.
Loan category		MDB Nari Uddog (TL) MDB Nari Uddog (RL)
Purpose of loan		To foster development of women entrepreneurs with bank finance for working capital and fixed asset purchase including civil construction for factory building/warehouse/shed etc. Working capital may be extended in the form of RL and TL while fixed assets/construction of factory building/warehouse/shed shall be financed in the form of TL.
Eligibility criteria		Tenure Of business: Minimum 02 years. It should be profit making business concern/startup business having potentials Nature of business: Any business/ service/ manufacturing/agri/ ago-based enterprises; Legal form of business: Proprietorship/partnership/private limited company/organizations having valid registrations/licenses Nationality: Bangladeshi by birth Entrepreneurs age: 21-60 years (applicable for sole proprietorship & partnership firms and organizations) Owners/entrepreneurs experience: 2 years of experience in any kind of business. For startup business the entrepreneur/s should have practical experience/training in the relevant area Owners/entreprreneurs capacity: To repay loan from secondary/tertiary source in addition to primary source of income Women entrepreneurship: More than 50% share owned by women entrepreneur/s (for partnership/private limited company)
Account turnover		Bank account turnover will be encouraged.
Availability		Loans under this product will be available across the country through MDB Nari Uddog various branches/sales outlets of MDB.
Eligibility for re-finance		Applicable as per Bangladesh Bank rule or agreement with any other re-financing or pre-financing agency/s.
Loan size		Up to BDT 5.00 crore including working capital and fixed asset finance. Loan size may be extended based on business viability and repayment capacity of the borrower.