Period of Loan |
| a.
|
In case of continuous
loan : 01(one) year. |
| b.
|
In case of Term Loan
: Maximum 05(five) years. |
Mode of Repayment |
| 01.
|
In case of continuous loan credit turnover in the
account must be equal to the limit in a quarter and full adjustment within the validity
period. |
| 02.
|
In case of term loan, the loan should be repaid by
monthly installments through post-dated checks as per amortization Schedule.
|
| 03.
|
Sale proceeds should be deposited in the account
regularly. |
Loan Monitoring and Review |
| This is a supervising credit scheme. The
success of the scheme depends on the extensive and intensive post disbursement
supervision, follow-up & monitoring. It must be ensured that the loan fund is not
diverted, the sponsors are very serious to the operation of the project, quality is
updated and marketing effort is effective. Regular repayment must be ensured. Visit to the establishment
must be done at least once in a month. During visit of the project motivational work to be
done with a view to strengthening the spirit & morale of the sponsors. A visit report
should be recorded in credit file against each visit. Supervision will be done by the
respective branches, which will be monitored by SME Cell, Credit Division, Head Office.
A signboard shall
be displayed at the shop / factory with writing “Financed by Prime Bank
Limited”. |
Recovery System |
| a.
|
If any borrower fails to adjust the loan within
validity period or to repay his monthly installment then the responsible loan-monitoring
officer of the concerned branch will arrange for adjustment of the overdue installments
from the loanee’s savings account if there is adequate balance. The officer shall
regularly follow up for recovery and take any measure including legal action for recovery.
|
| b.
|
If any loanee fails to repay his consecutive 02(two)
monthly installments, then the Branch’s loan monitoring officer will investigate into
the actual causes of default and report to the Branch Manager with a copy to SME Cell,
Head office for further action and advice for recovery/regularization of the loan.
|
Other Conditions |
| 01.
|
The borrower shall maintain a non-withdrawal savings
account with the concerned branch where he shall make compulsory deposit of @ 0.5% of
outstanding loan amount per month for building up his own fund. |
| 02.
|
The borrower must not
change the nature of business and place of business without prior permission of the Bank.
|
Allocation for the Scheme |
| Initially a sum of Tk.10
crore may be allocated for disbursement of loan under the scheme, which will be revised
from time to time as per performance of loans under the scheme. |
Processing of Credit Proposal Under the
Scheme |
| 01. |
Initially, SME Cell, Head Office shall process the
credit proposals under the scheme and Head Office Credit Committee shall approve the same.
As per desire of the customer the sanction advice will be sent to the concerned branches
for documentation and disbursement. |
| 02.
|
SME Cell/Branch will work very closely with JOBS
program for evaluation of credit proposals. |
| 03.
|
The rules and regulations of USAID must be fully
complied with for extending loan to Small and Medium Business Enterprise.
|
