Financing of Industries

Introduction : Janata Bank Limited entrusted with the responsibility of developing industries within the frame work of Industrial policy of the Government of Bangladesh and credit norms of Bangladesh Bank as well as by the Investment Board. If the project is managerially, marketing pont of view, technically, commercially and financially viable, then Janata Bank Limited finance  the project.
Loan application Form : Prescribed loan application forms are available at all corporate-1 & 2 and district headquarter branches along with all other nominated branches.
Experience : Sponsors/companies having prior experience in the related field are given priority.
Loan Limit : Janata Bank Limited may be financed up to Tk. 129.60 million in single project a year. But if any project required above the limit, the project may be financed under consortium/syndication arrangement with other financial institutions.
Debt Equity Ratio : Normally debt equity ratio is 50:50. But higher equity ratio sharing is given preference. Above  all, Bankers/Customers  relation is also considered in fixing debt equity ratio.
Rate of Interest : Rate of interest of  project loan ranges from 11%-13% .  Working capital rate of interest is 12% to 13.50% and with that in export oriented industries ranges from  7% to 14%(changeable).
Repayment Mode and Period : 5 years to 10 years with 6-24 months grace period inclusive of construction period. Project loan is repayable by  half yearly installment. Working capital loan and export credit are sanctioned for  1 (one) year and they are renewable every year.
Security : The project land, building, machineries and others i.e. project assets are considered as primary security against term/project loan. But if the project is to be set up on rented premises,  collateral securities is obtained obtained minimum 1.3 times of project loan.
Sanctioning Authority : Janata Bank Limited, Head Office, Dhaka.
Submission of loan Application : Loan proposal  has to be submitted through any nominated branch of Janata Bank Limited, list of which is  available in this Web page. To see the list of the nominated branch, please click here

For further information, please contact :
Deputy General Manager
Industrial Credit Division
Head Office, Dhaka
Bangladesh
Phone : (88 02)  955 8423