Cottage, Micro, Small and medium enterprise (“CMSME”) customers strive to grow by the dint of their dedicated and hard work. However, to sustain the business operation and secure a continual growth, they require financial support in addition to their hard work to position themselves in the market. Moreover, to meet increased customers demand successful CMSME businesses often find it necessary to go for profitable expansion. However, they fail to address such demand most of the times due to shortage of capital.
Since this sector is labor intensive with short gestation period, it is capable of increasing national income as well as rapid employment generation; achieving Millennium Development Goals (MDGs) especially eradication of extreme poverty and hunger, gender equality and women empowerment. CMSME sector has played a vital role in economic development of some prosperous countries Bangladesh
In order to help CMSME customers to achieve their desired and justified level of growth, SBAC Bank Ltd. has extended several loans to augment capital base of these customers:
CMSME entrepreneurs require running capital at any time to operate their business smoothly. Therefore, these entrepreneurs are required to ensure source of continuous finance as well as to provide BG/PG along with bill purchase so that their business activities are not interrupted.
The citizen of Bangladesh as lower middle-income group approaches for foreign trade to generate profitability as well as employment. Small and medium enterprise (CMSME) customers strive to grow by the dint of their dedicated and hard work. SBAC Bank supports financially these sort of CMSME customers.
Mode of Financing:
L/C (One off /Revolving): Importing permissible goods i.e. industrial raw materials, traded items, other commodities of reasonably good market demand.
Term Loan /Hire Purchase /PIF/PAD (Sight L/C), PAD (Deferred L/C), PAD (Local), PAD (EDF): For retirement of shipping documents under L/C as post import finance.
Time Loan (One off / Revolving): To make payment of customs duty, VAT, TAX for clearance of imported consignment by ensuring customer ‘s part of equity depending upon the banker customer relationship.
In our country, people celebrate festivals like Eid, Puja, Christmas, Bengali and New year more joyfully. As a result, it creates special business arrangements that create increased sales and profit opportunities for products and services of CMSME customers to capture this business opportunities, SME customers must need ensured supply of their goods and services, which again require capital. SBAC Bank extends its credit facilities to make sure that CMSME customers do not miss any opportunities from various festivals and seasonal events
Mode of Financing:
CMSME CC(H), CMSME SOD (G), CMSME SOD (WO), Time Loan (specific) etc.
In Bangladesh, 50% population are women. These borrowers strive to grow amidst acute dearth of capital, steep competition and absence of support. There are a considerable number of women borrowers that do not have adequate access to Bank finance and therefore are finding it difficult to expand and operate their business at desired level. However, many of these customers are indeed good credit and have potentials to successfully promote and market their business ideas if they are supported with required level of finance. SBAC Bank recognizes the need for introducing a specialized loan product solely geared to catering the need of women entrepreneurs. Therefore, it has introduced credit facilities as a tribute to women entrepreneurs and to help strengthen women entrepreneurs’ business in a supportive manner.
SBAC Bank plays a crucial role in promoting environmentally sustainable and socially responsible finance. Banks may not be the polluters themselves but they usually have a banking relationship with some companies/finance projects that are polluters or could be in future. Banking sector is reckoned as environmentally friendly in terms of emissions and pollutions.
SBAC Bank plays a vital role to expand financing in Transportation which plays a significant role in the market.
In addition, SBAC Bank extends its credit facilities under Bangladesh Bank Re-finance scheme to the CMSME customers, which are:
Bangladesh Bank vide SMESPD Circular no.4 dated 19.07.2022 has introduced Term Loan under Re-finance scheme for BDT 25,000 crore. SBAC Bank has signed an agreement for financing CMSME entrepreneurs under this scheme.
To meet up working capital requirement for the affected CMSME entrepreneurs under BDT 10,000 crore Financial Stimulus Package in the ongoing hard time under the COVID-19 outbreak for overcoming the losses owing to the pandemic situation COVID-19
Bangladesh Bank vide SMESPD Circular no.2 dated 05.09.2019 has introduced re-finance scheme for CMSME entrepreneurs for Agro Based Product Processing Industries in Rural Areas
Bangladesh Bank vide SMESPD Circular no.2 dated 05.09.2019 has introduced re-finance scheme for Small Enterprise Sector (Women Entrepreneur)