Frequently Asked Question

What is SME Banking?

Ans:       The term SME stands for Small and Medium Enterprise. If you are a non-individual entity you might fall under SME Banking depending on your business size. SME Banking is the banking unit which is always by your side to help and guide you in your business, whatever be your type of business catering to all your banking needs.

Do I fall under SME?

Ans:       If you are engaged in Trading or Services business with your total investment netting off the value of your land and building below Taka One Crore and the total number of your employees is less than 25 then you fall under Small Enterprise. You also fall under Small Enterprise if you are a Manufacturing concern and your total investment netting off the value of your land and building is below Taka Ten crore and the total number of employees is less than 99.
If you are in Trading or Services business with your total investment netting off the value of your land and building is below Taka Fifteen crore and your total number of employees is less than 100 then you fall under Medium Enterprise. If you are a Manufacturing concern and your total investment netting off the value of your land and building is below Taka Thirty crore and the total number employee is less than 250 then also you fall under Medium Enterprises.

Which types of organizations are facilitated?

Ans:       We facilitate all types of organizations. No matter whether you are a Sole Proprietorship concern or a Partnership concern or a Limited Liability Company, if you fall under SME segment, our doors are always open for you.

What are the facilities that I can avail?

Ans:       We provide our clients all kind business solutions, starting from short term, medium term and even long term financing as well as trade financing. Following is our product suite in brief:

• Transaction Banking
  • Current Account
  • Short Notice Deposit Account
  • Term Deposits
  • Fund Transfer
• Term Loan
• Over Draft
• Cash Credits (Hypo/Pledge)
• Guarantees
  • Payment
  • Performance
  • Shipping
• Trade Services
  • Letter of Credit
  • Back-to-Back LC
  • Import Documentary Collections
  • LC Advising
  • LC Negotiation
  • Documentary Bill for Collections
  • Loan against Trust Receipts
  • Foreign Bill Purchase
  • Bill Discounting
• Term Deposit
• Cash Pickup and Delivery Services

We also offer bundle facilities with a mix of term loan and OD/CC and different solutions depending your business need.

 What should be the age of my business?

Ans:       Your business should have minimum three years of business vintage in the same line.

  What are the proofs of business vintage?

Ans:       Trade license will be considered as the best proof of business age. Other documents proving the age of the business (in case trade license is not available) will be also considered with proper justifications.
  What should be the age of the owner?

Ans:       For Sole Proprietorship concern, the owner should be at least 25 years and at most 60 years old. For Partnership and Limited Liability Companies, at least 50% of the shareholders must fall under the above mentioned age bracket.

 What is the amount that I can avail?

Ans:       Under small business we can finance up to Taka One crore of funded facility. Under Medium Enterprise we can offer up to Taka 35 crore of funded facility depending on the credit worthiness and also the income support of the customer.*^*

Are there any collateral requirements?

Ans:       Usually, collateral is required depending the credit worthiness. For funded loans, the entire loan amount needs to covered by first party registered mortgage or term deposits.

What will be the interest rate?

Ans:       Premier Bank Limited offers the most competitive Interest rate

 What are the Fees and charges?

Ans:       Premier Bank Limited does not apply any Loan Processing Fee. Other standard Fees and Charges are applicable as per bank policy.

Do we allow Prepayments?

Ans:       Yes, we allow full or partial prepayments. In such cases an Early Settlement Fee will be charged over the prepayment amount.

 Is there any location dependency for availing SME facility from Premier Bank?

Ans:       We can finance throughout Bangladesh, where we have our branch existence.

 Who falls under exclusion list?

Ans:       Following is the list of our exclusion customers:

• Government entities: including all SOEs, semi-government and state-run entities
• Financial Institutions including banks, brokerage houses, insurance companies, hedge or special purpose funds, commodity brokers, mortgage banks etc.
• Casinos & gambling houses/equipments
• Defense sector including arms, ammunitions and defense sector equipment dealers, manufacturers, traders etc.
• Obscene materials/stores/services
• Mining and Oil Drilling and Refining
• Traders of Endangered Species or ivory products
• Any social, charitable or religious organization (including Houses of Worship)

 What are the required documents?

Ans:       Following table denotes in detail the list of documents required depending on the type of business:

Documents	Proprietorship Concern	Partnership Firm	Private Limited Company
Valid Trade License	Yes	Yes	Yes
3 Year Old Trade License	Yes	Yes	Yes
Latest 12 Month Bank Statement	Yes	Yes	Yes
National ID of Business Owners	Yes	Yes	Yes
TIN Certificate	Yes	Yes	Yes
Photograph of the Owners	Yes	Yes	Yes
Partnership Deed	No	Yes	No
Memorandum & Article of Incorporation, Form X and XII	No	No	Yes
Certificate of Incorporation	No	No	Yes
Board/ Partnership Resolution	No	Yes	Yes
All Facility Related Offer Letters	Yes	Yes	Yes

This list is not exhaustive and requirements can change depending customer needs

To find out more about SME Banking please visit your nearest Premier Bank branch (branch directory URL) or click on ‘Request for Call Back’ (URL). Our Relationship Managers will soon get back to you.