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The Micro Enterprise & Special Program Division (MESPD) is responsible for implementing of (i) Micro Credit Programs

related with the poverty reduction, (ii) Special credit programs related with employment generation and (iii) Financing of agro-based industries. Bank has different micro-credit programs of its own & in collaboration with other agencies. For successful implementation of these credit programs specially poverty reduction credit programs it requires close supervision and monitoring. Considering Bank's manpower/field staff it is not always possible to ensure intensive supervision at the grass root level. To make the micro credit programs time & cost effective bank has initiated linkage program using intermediaries/collaborating agencies (GOs & NGOs). Collaborating agencies are responsible for organizing the target groups (conducting survey, formation of groups, providing training etc.) including supervision and recovery of credit . The main features of different micro-credit programs are narrated below:1. Diversified credit program -1992. Objectives : For creation of self employment & poverty reduction.

Area of operation

Throughout the country.

Activities & Appraisal

(a) Initially 45 IGAs. Presently any viable IGAs. (b) Production plan/appraisal is prepared on the basis of activities and market rate. (c) Loans are determined on the basis of credit norms/ceiling given by Head Office or present market rate subject to the prior approval from the concerned authority.

Associate agencies

Bank's own program.

Approach

Individual.

Term

ST & MT.

Security

(a) Up to Tk.50,000/-, (b) Personal guarantee in favour of (c) Hypothecation of goods ( If applicable).

no loanee

collateral from an

is required acceptable person.

Disbursement

Disbursement is made in cash by installments. Purchase receipts/documents to be kept in respective loan file.

Repayment

Repayable by weekly/fortnightly/monthly installment. Repayment period and mode of repayment is fixed depending on the nature of activities & generation of income

Rate of interest

11%

Delegation

Delegation of business powers as per RCD circular no- 281 dated: 29-06-2004 (in lacs) Branch Managers Gr-4 0.20 Gr-3 0.30 Gr-2 0.40 Gr-1 0.50 2.00 3.00 4.00 5.00 RM AGM DGM GM

Related Circulars/Letters

RCD- 215 dt: 10-04-1993 & 281 dt: 29-06-2004 Letter No:cFwe/cwj-wWwewc(mKj Aj)/Avwkl/95/4399 Zvs-03-01-95Bs Ges cFwe /eaK-wbqgvPvi/Avwkl/96/7 Zvs-06-01-96 Bs|

2.Small Farmers & Landless Labourers Development Project(SFDP)-1976 Objectives : Employment generation of the poor.

Collaborating agency

Bangladesh Academy for Rural Development (BARD),comilla.

Activities

All types of IGAs.

Approach

Group. A group consists of 7-10 members.

Term

ST.

Security

a) Hypothecation of goods. b) Group guarantee. c) Lien of group savings.

Rate of interest

11%

Disbursement

Disbursement is made in cash or through group's savings account.

Repayment

Loan is repayable in installments (weekly/monthly etc.) It depends on the nature and purpose of loan.

Delegation

: Branch Max.0.80 per group RM 2.00 AGM 3.00 DGM 4.00 GM 5.00

(Fig. in Lac.) DMD 5.00 MD 5.00

Related Circular/letter

Banking plan/work manualGes

c bs Fwe-4/GmGdwWwc Kvt wbt/98 Zvs-16-09-98B

3.Swanirvar Credit Scheme -1978 Collaborating agency : Swanirvar Bangladesh

Area of operation :

247 unions of 87 Upazillas. 167 branches are designated.

Major activities under credit :

Off-farm IGAs..

Approach :

: Group. Each group consists of 5 members.

Amount of loan is determined on the basis of activities & prevailing market rate. Appraisal :

: ( Maximum Tk.10,000/- per member).

Security :

a) Hypothecation of goods. b) Group guarantee. c) Lien of Group savings.

Rate of Interest :

: 11%

Disbursement :

: Disbursement is made in cash.

Repayment :

: Loan is repayable with interest by 52 weekly installments.

Concerned Branch Managers sanction loan subject to the recommendation of credit Delegation :

: supervisor/unit manager of Swanirvar Bangladesh.

Related circular/letter :

: As per work manual of Swanirvar credit program.

4.Co-operative credit for rural poor-1980 Collaborating agency : BRDB(Bangladesh Rural Development Board).

Area of operation

Noakhali, Luxmipur & Feni District.

Objectives

Financing to the co-operative members of primary societies ( eg. Farmer's society, Women's society etc.) under 2-tier co- operative.

Major activities under credit

Crop & other different production oriented income generating activities.

Proposal

Co-operative members apply for loan to the concerned primary society. Primary society consolidates the loan applications and applies for loan to respective UCCA(Upazilla Central Co-operative Association). UCCA consolidates the society wise loan requirement and finally the UCCA applies for loan to the bank.

Appraisal

Crop- as per credit norms of SACP & other short term credit- on the basis of production plan prepared as per market price. Irrigation & Ag.Implements- on the basis of actual market price. Maximum 80% loan is sanctioned. i.e. minimum down payment is 20%.

Security

a) Members of managing committee of UCCA are to give guarantee individually and jointly. b) Lien of Group share/savings.

Disbursement

Disbursement is made amongst the members of the primary societies in cash in presence of Upazilla credit committee(consists of bank, UCCA & primary society representative)

Delegation

Regional Head- upto Tk.50.00Lac/UCCA & Area Head- up to Tk. 1.00 crore/UCCA for single instance.

Reference circular/letter

Agreement between Janata Bank Limited & BRDB

5. Lending through NGOs -1996 Target Group : Poor members of self-help groups(SHGs) organized by NGOs.

Objectives

In case of individual lending maximum coverage and constant supervision is not always possible for a bank branch. Therefore, Lending through NGOs are much cost effective. On the basis of this observation, bank has initiated this linking credit program with NGOs.

Proposal

Following criteria are to be considered during processing of the NGO- loan proposals: i) NGO must have registration from the competent authority ( e.g. Ministry of women affairs, Social Welfare department, NGO-Bureau, Registrar joint stock company etc.). ii) In the articles of association/by-laws of the concerned NGO there must be provision of taking loan from any financial institutions/banks. iii) The NGOs concerned have their own credit program for poverty reduction. iv) They must have good tract record. v) They must be able to provide the equity and security of loan. vi) From the last year bank has widened NGO- Credit program by opening another window/ product line named JB-CDF (Credit & Development Forum an apex body of NGOs) NGO credit .

Security

a) Mortgage of properties( 1 /2times of loan) b) If the NGOs are not able to arrange mortgage of property in that case they are to build up a guarantee fund A/C equivalent to loan limit. Initially 25% of the fund to be raised before disbursement of loan. Rest of the fund to be raised gradually (as decided by bankweekly/ fortnightly basis) within the loan period. c) For CDF-NGOs, no such collateral is required. In this case CDF provides guarantee. d) Members of the Executive Committee of the NGO are to give guarantee individually and jointly.

Disbursement

Disbursement is made in installments through their savings/current account.

Delegation

Loan is sanctioned up to Tk. 25.00 Lacs by MD.

at

Head

Office

level

Rate of interest

11%

Repayment

To be repaid by fortnightly/monthly installments within 1 /2 --3 years.

Related Circular/letter

6. Grain Storage credit- 1991 Target Group : Crop producers( Small & Marginal farmers)

Area of operation

Allocated unions of Jamalpur, Jessore, Jhenaidah, Barisal, Dinajpur, Rajshahi, Rangpur, Bagura, Gaibandha and Naogaon.

Objectives

To ensure fair prices of agricultural produces and save the farmers from financial losses during the harvesting season when crops are sold at a comparatively lower price.

Appraisal

(a) A farmer can store upto 10 quintal of cereal each. (b) Loan will be provided 80-90% of procurement price declared by Govt. as per credit limit approved by advisory committee (project people). If price is not available in that case , on the basis of prevailing market price to be considered and loan will be determined up to 75% of market price.

Sanction

Loans are sanctioned against cereal stored in godown

Disbursement

Disbursement is made in cash

Security

Hypothecation of cereal crops stored in godown

Rate of interest

10%

Repayment

Entire amount of loan is repayable within 6 months. For seed repayable within 9 months

Delegation

Branch Manager.

Related Circular/letter

7. Ghoroa Prokalpa/ Family based micro credit: Target Group : Rural poor people male or female and should be capable to conduct the activity for which the credit to be applied for.

Area of operation

Unions under SACP(approved by H.O.).

Objectives

(a) Accommodating maximum rural dwellers in production/ income generating activities. (b) Making each household a " Production Farm." & thereby to make them economically sustainable.

Eligibility

(a) Permanent inhabitant of the allotted union. (b) Applicant must be capable and keen to conduct the concerned activity. (c) Head of the family will execute the charge documents and will provide guarantee on behalf of the loanee members of the family.

Proposal

(a) Any one can apply for loan from the command area of branch. (b) Loan application to be duly & correctly filled in along with the production plan ( in a prescribed form). (c) By conducting survey group pass book to be issued for the eligible family members

Appraisal

(a) Loans are determined on the basis of credit norms/ceiling given by Head Office. (b) Production plan/ appraisal is prepared on the basis of activities and market rate.

Sanction

Loans are sanctioned for different income generating activities.

Loan size

Maximum TK.40,000/- per family. Loan size depends on the nature of loan and varies from purpose to purpose.

(a) Hypothecation of the goods against which loan has been given. Security : (c) Under this program security has not been given priority. Importance has been given on close supervision , monitoring and evaluation.

Disbursement

Disbursement is made in cash or kind through single or 2 installments. In kind, through payment order to supplier. Purchase receipts/ documents to be kept in respective loan file.

Repayment

Repayment by fortnightly/ monthly/ half yearly installment. Mode of repayment depends on nature and purpose of credit.

Documentation

D.P. note and other charge documents.

Delegation

Branch Managers can sanction loan up to maximum 40,000/- per family.

Reference letter

Fwe-4/ wewbqvM cwiKbv/ wmB/2000 ZvwiLt 24/07/2000 Bs|

Entrepreneurship development Programs


1. Women Entrepreneur Development Credit program. Prospective women entrepreneurs those who are (a) producing/marketing goods by themselves or through others. (b) eager to utilize their educational/professional experience and like to set up new projects or BMRE of existing projects and need working capital.

Target Group

Purpose of loan

Dress making, Bed cover, Bed sheet, Pillow cover, Embroidery, Block, Screen Printing, Doll making, Artificial flower making, Gift item, Small printing industry, Foods processing (Jam, Jelly etc.), Spices processing, Store running, Fast food item, Leather products, Jute products, Bamboo and cane products, Plastic products, Pottery, Serviceoriented Tele-Phone-Fax-e-mail & computer service, Day-care centre, Nursing home, Diagnostic centre, Clinic set-up and running etc.

Eligibility of clients

The women entrepreneurs asking for loan should have minimum literacy. She should be agile, having will power & innovation traits. Women who have need based/job specific training & skill.

Appraisal

On receipt of proposal, Branch manager makes spot verification and verifies the genuineness and credit need of the entrepreneur.

Sanction/Delegation

Head Office and field level sanction the loan on the basis of market price, P.P and equity of the entrepreneur. Minimum equity/margin is 25%

Security

Personal guarantee of the applicant, Personal guarantee of the applicant's husband/father or earning members from any dears & near one's, guarantee from any known & highly acclaimed person of the society/organization to be obtained.

Disbursement

Disbursement is made in cash. But in case of procurement of machineries/equipments disbursement is to be made through pay order to the supplier of goods.

Delegation

Sanction power lies with Head Office and field level.

Rate of interest

10%

Repayment

To be repaid in three years on monthly installment basis with a grace period of 3 months. For working capital, C.C. loan procedure is being followed.

Reference circular/letter

2.Cyber Cafe Target Group : Trained youth in computer technology.

Area of operation

10 designated branches of Dhaka city and corporate branches-I & II of Chittagong, Khulna, Rajshahi, sylhet and Barisal divisional head- quarters.

Objectives

(1) To create employment opportunity for the unemployed trained youth and expansion of information technology. (2) To purchase computer, server, networking, Internet connection, Printer, Scanner, CD writer, UPS, Decoration etc.

Eligibility

(a) Applicants must have minimum diploma degree in computer science or company formed by them.

(b) Companies having prior experiences in cyber caf business . (c) Concerned business at project area to be verified before loan sanction/disbursement. In regards cyber caf's work station appraisal of viability to be considered. (d) Age Limit: Minimum-25 yrs Maximum65 yrs (e) The applicant who can repay monthly loan installment excepting the 1/3 of his monthly income.

Proposal

Loan proposal has to be submitted with detailed production plan.

Appraisal

On receipt of proposal, Branch manager makes spot verification and verifies the genuineness & credit need of the applicants.

Sanction

Head Office sanctions the loan for expansion & setting up of cyber caf (for purchase and installation of Computer, Server, Net working, Internet connection, Printer, Scanner, UPS & cost of decoration etc.). Minimum equity/margin is 40%.

Security

(a) Loans up to Tk. 3.00 Lac, no collateral is required and above Tk. 3.00 Lac collateral is required (1.5 times of loan). (b) In case of no collateral , advance dated cheques (one for each installment and additional one) are to be taken. (c) Hypothecation of computer and all other equipments rd (d) In case of no collateral security, 3 person guarantee is required.

Documentation

D.P note & other charge documents.

Disbursement

Disbursement is to be made in cash by installments. Purchase voucher/receipts to be kept in respective loan file.

Delegation

Sanction power lies with Head Office Designation MD DMD GM Delegation of power without collateral 3.00 Lacs 3.00 Lacs 3.00 Lacs Delegation of power with collateral 10.00 Lacs 7.00 Lacs 5.00 Lacs

Rate of interest

12%

Repayment

To be repaid in 36 monthly installments, starting next month from disbursement.

Reference circular/letter

RCD No. 287 dt: 30/06/2005

3.Doctor's Loan Scheme: MBBS or its equivalent degree holders registered Doctors like Medical Practitioners, Eye Specialist, Cardiologists, Surgeons, Dentists etc, any group of doctors or any institution/company formed by the doctors may apply for availing this loan in the bank's prescribed form.

Target Group

Area of operation

(a) All branches of (b) All corporate (c) All main branches of district towns.

divisional branches-I

head &

quarters II

Objectives

(a) Inducing health services through all over the country. (b) To create employment opportunity of Doctors . (c) Making Chamber and purchase of required machineries and equipments.

Eligibility

(a) The aforesaid categorized doctors must possess valid approval or license for general practices from the competent authority. (b) Those doctors who are not fully engaged may get preference for enjoying this new facility. (c) Age Limit: Minimum-25 yrs Maximum65 yrs (d) The doctors who can repay monthly loan installment excepting the 1/3 of his monthly income. (e) Experience: 2 yrs.

Proposal

Loan proposal has to be submitted with detailed production plan.

Appraisal

On receipt of proposal, Branch manager makes spot verification and verifies the genuineness and credit need of the applicants.

Debt-Equity Ratio

80:20(Minimum).

Security

(a) In case of no collateral security, advance dated cheques (one for each installment and additional one) are to be taken. (b) Guarantee from the person acceptable to bank to be obtained in case of loan without

collateral/Original certificate of degree (c) Personal guarantee of borrower's husband/wife/parents/mother/father/adult children to be obtained. (c) Hypo. of all furniture & machineries of chamber. (d) Original copy of license of general practitioner to be obtained. (e) In case of group loan, one person will give guarantee for another. (f) Having been verified certificate/license/guarantee submitted by applicants carefully, these to be obtained. (g) The equipment purchased shall duly be insured covering all risks. (h) Personal guarantee of borrower's husband/wife/parents/adult children to be obtained. (i) Encashable securities equitable to loan or mortgage of landed property (1.3 times of loan) to be obtained.

Sanction

Loans are sanctioned on the basis of production plan at field level and Head Office as per delegation.

Documentation

D.P note and other charge documents.

Disbursement

Disbursement is to be made in cash by installments. Purchase voucher/receipts to be kept in respective loan file.

Delegation

: Designation MD DMD GM DGM AGM(Corp.2, Regional Office)

Delegation of Power Without collateral 5.00 lac Taka 4.00 3.00 2.00 1.00 ,, ,, ,, ,, With collateral 10.00 Lac Taka 8.00 6.00 4.00 2.00 ,, ,, ,, ,,

Rate of interest

13%

Repayment

To be repaid in 5 years in 57 monthly installment with a grace period of 3 months.

Reference circular/letter

RCD No. 287 dt: 30/06/2005

4.Small business development loan scheme Target Group : Those who are running the business by purchasing shop's possession or renting for a specific time.

Area of operation

Corporate branches-I & II. Besides these, all branches of divisional and old districts towns and main branches of new districts towns .

Objectives

Expansion of existing shop & providing term loan/working capital to existing shop

Eligibility

Those unemployed educated youth who have no ability to give collateral but involved in businesses such as all types of handicrafts, book, crokeries, all kinds of furniture, grocery & stationery shops, departmental store or any other income generating activities.

Proposal

Loan proposal has to be submitted with detailed production plan.

Appraisal

On receipt of proposal, Branch manager makes spot verification and verifies the genuineness and credit need of the applicants.

Sanction

Loans are sanctioned on the basis of production plan at Head Office level as per delegation.

Security

(a) Loans up to 5.00 Lac, no collateral is required in both term loan & working capital. Up to maximum Tk. 25.00 Lac, collateral is required in both term loan & working capital (1.5 times of loan). rd (b) In case of no collateral, 3 person guarantee is required. (c) Shop's possession right/ rental agreement to be obtained with consent letter of house/shop's owner. (d) In case of group loan, one person will give guarantee for another.

Debt-Equity Ratio

70:30

Documentation

D.P. note and other charge documents.

Disbursement

Disbursement is to be made in cash by installments. Purchase voucher/receipts to be kept in respective loan file.

Repayment

To be repaid in 5 years in 60 monthly installment in case of term loan. For working capital

C.C. loan procedure is being followed.

Rate of interest

11%

Delegation

Sanction power lies with Head Office. With Collateral (a) (b) (c) (d) (e) MD DMD GM (HO/DO) DGM (AO/RO/Corp.-1) DGM (AO/RO/Corp.-1) Without Collateral 5.00 Lac Taka 4.00 Lac Taka 3.00 Lac Taka -

: : : : :

25.00 Lac Taka 15.00 Lac Taka 10.00 Lac Taka 2.00 Lac Taka 1.00 Lac Taka

Major activities under loan

Handicrafts, Book, Crokeries, All kinds of furniture, Stationary shop , departmental store or any other income generating activities.

Reference circular/letter

RCD Cir. No.280 dt: 17/06/2004, 07/08 dt. Letter No.GgBGGmwcwW/z` eemvqx Dbqb/2004 ZvwiLt 04/08/2004Bs|

12.02.08

Special Credit Program:


1.Seed Development Programme Target Group : Farmer's Seed Company (FSC).

Area of operation

FSC are located in the following 10 districts: Gopalgong, Naogaon, Bhola, Sherepur, Maulvibazar, Dinajpur, Chuadanga, Jhenaidah, Patuakhali and Cox,s bazar.

Objectives

To extend loan to farmer's seed company for procurement, processing & marketing quality seeds for the development of private seed sector.

Eligibility

(a) The concerned (FSC) are to be duly registered under the companies act,1994 of Bangladesh. (b) The shareholders and directors of such companies must be residing in the concerned locality. (c) The loan taking FSC must maintain their fund/deposit company's account with the financing branch.

(d) The concerned (FSC) or its directors/shareholders are not defaulter loanee of other bank/financial institution.

Proposal

Loan proposal has to be submitted with detailed production plan.

Appraisal

On receipt of proposal, Branch manager makes spot verification and verifies the genuineness and credit need of the applicants.

Sanction

Loans are sanctioned on the basis of production plan at Head Office level as per delegation.

Security

(a) The guarantee fund to be provided by GTZ will be treated as collateral security. (b) Hyp. of crops/goods/assets to be produced/procured with loan money. (c) The members of the Board of Directors shall provide to the bank a group guarantee stating their joint and individual liability to repay the loan. (d) Seeds/goods/assets procured by bank loan and stored by the company shall duly be insured as per bank's clause covering all risks.

Documentation

(a) List of all share holders with full particulars. (b) Duly attested copy of Memorandum & Articles of Association. (c) Duly attested photographs of all directors. (d) Resolution of the Board of Directors with decision regarding taking loans as per sanction.

Disbursement

Loan to be disbursed for procurement of different seeds/cereals as per schedule. Purchase voucher/receipts to be kept in respective loan file.

Debt-Equity Ratio

75:25

Delegation

Sanction power lies with Head Office.

(a) (b) (c) (d)

DGM GM DMD MD

: : : :

10.00 Lac Taka 15.00 Lac Taka 20.00 Lac Taka 25.00 Lac Taka

Repayment

Loan for each crop shall be repaid within 9 months from the date of disbursement of that item. If any FSC for genuine reasons is not able to repay the loan in time, the branch may allow a grace period of maximum 3 months.

Major activities under loan

Credit will be provided for mainly- Wheat, Boro, Aus ,Paddy and other potential crops of the locality.

Rate of interest

10%

Collaborating agency

Seed Business Promotion Project/GTZ

Reference circular/letter

As per agreement between Janata Bank Limited & GTZ

2. Loan for Handicapped/disabled people Target Group : Physically handicapped/disabled people who has the expertise and intelligence to conduct the economic activity.

Area of operation

All branches up to union level.

Objectives

(a) To raise the income and living standard of handicapped people by self employment. (b) To help build self reliance and to bring them into the mainstream of economic activities. (c) To provide assistance for increasing efficiency at work and in their own professions.

Proposal

(a) Loan application to be duly & correctly filled in along with the production plan ( in a prescribed form). (b) By conducting survey pass book to be issued for the eligible people.

Appraisal

Amount of loan is determined on the basis of activities. Initially amount of loan will be maximum TK. 25,000/-. Later amount of loan will be fixed up to TK. 50,000/- on the basis of the efficiency level.

Eligibility

(a) The age of the handicapped borrower should be at least 18 years. (b) The borrower/entrepreneur should be capable and keen to conduct the concerned project/activity. If any individual is physically handicapped but he has the expertise and intelligence to conduct the economic activity for which he has applied for in those cases the borrower/individual will be selected as eligible for the credit to conduct the activity through his or her wife/husband/father/ mother/brother/sister. (c) The handicapped individual who have training on the concerned subject/project from

Government/private organization

Documentation

D.P. Note and other charge documents.

Disbursement

Disbursement of credit on installment basis( one or more) as per requirement and will depend on nature and sector of the credit policy.

Repayment

Loan repayment on weekly/fortnightly/monthly/quarterly basis will depend on nature, sector and income generating kind of the credit facility.

Rate of interest

10%

Major activities under credit

All income generating activities suitable for disabled people such as fish cultivation, milking cow, goatery, beef fattening etc.

Reference circular/letter

RCD Cir. No.- 270 dated: 2002

3. Hybrid Milking Cow Rearing (HYV-Milch Cow): Target Group : Farmers of Pabna & Sirajgonj region where they developed their skill ness in milking cow rearing due to suitable grazing land and weather.

Area of operation

Baga bari & Shahjadpur branch under Sirajgonj district and Bera & Demra branch under Pabna district.

Objectives

(a) To alleviate poverty and unemployment problem through rearing of hybrid milking cow . (b) The milk production capacity of local and cross breed cow of Pabna & Sirajgonj region is better. Milk Vita & other milk processing unit have established in these regions. As a result , a potential milk market has created. Considering this fact, A small credit program ( For establishment of family based rearing farm ) has been undertaken.

Eligibility

(a) The applicants should be permanent resident of Pabna & Sirajgonj region. (b) The applicants should have experience in cow rearing

Proposal

(a) Loan application to be duly & correctly filled in along with the production plan ( in a prescribed form).

(b) By conducting survey pass book to be issued for the eligible people.

Appraisal

(a) Loans are determined on the basis of credit norms/ceiling given by Head Office. (b) On receipt of proposal, Branch Manager makes spot verification and verifies the genuineness and credit need of the loan applicant.

Loan size

(a) For Pabna local breed milk TK.20000/- - 25,000/- ( 5- 6 litre) per cow with calf. (b) For cross breed TK. 30000/- - 35,000/- ( 8- 10 litre) per cow with calf.

Security

(a) Up to 50,000/- no collateral is required. (b) Hypothecation of cows. (c) Personal security of the loan applicant. (d) In case of loan above 50,000/- mortgage of landed property (1.5 times of loan) as per Instruction Cir. No. 1220.

Disbursement

Disbursement is to be made in a single or more installments.

Delegation

(a) Branch Manager- Up to 50,000/(b) AGM/DGM- Up to 3,50,000/-

Rate of interest

10% ( simple interest).

Repayment

To be repaid within 3 years by monthly installments.

Reference letter

Fwe-4/Mvfx cvjb/02 ZvvwiLt 10/08/2002 Bs

4.Credit for Forestry/Horticulture Nursery: Target Group : Unemployed youth having trainings/experiences in nursery & plantation.

Area of operation

All branches throughout the country.

Objectives

(a) To generate employment opportunity. (b) To develop fruit/spices and forestry/herbal nursery business in the country.

Eligibility

(a) The applicant should be permanent inhabitant of the locality. (b) Poor/unemployed trained/experienced youth .

Proposal

(a) Loan proposal has to be submitted with detailed production plan. (b) By conducting survey interested & eligible people to be identified.

Appraisal

(a) On receipt of proposal, Branch manager makes spot verification and verifies the genuineness & credit need of the applicants. (b) Loans are determined on the basis of credit norms/ceiling given by Head Office. (c) TK. 30,000/- per acre, maximum for 1.5 acres.

Sanction

Area/Regional head sanctions the loan on the basis of branch recommendation.

Security

(a) Hypothecation of goods produced. (b) Personal guarantee of the applicant.

Documentation

D. P. note & other charge documents.

Disbursement

Disbursement is to be made as per requirement.

Rate of interest

10% ( Simple interest)

Repayment

To be repaid within 2 /2 years by 15 installments in case of fruit/spices nursery and within 2 years by 18 installments in case of forestry/Herbal nursery.

Reference circular/letter

RCD Cir. No. 264 dt:22/05/2002

5.Credit for Flower plantation & Garden: Target Group : Unemployed youth having trainings /experiences in flower plantation and garden.

Area of operation

All branches throughout the country.

Objectives

At present flower cultivation is an important sector at home & abroad. Its use has become widened day by day. Flower cultivation and business is now commercially profitable in the domestic & export market. To encourage this trade, our bank has initiated a credit program for flower cultivators.

Eligibility

(a) The applicant should be the permanent inhabitant of the locality. (b) Unemployed trained & experienced youths those who are interested in this sector.

Proposal

Loan proposal has to be submitted with detailed production plan

Appraisal

(a) Loans are determined on the basis of credit norms/ceiling given by Head Office. (b) TK. 50,000/- to TK. 1,25,000/- per acre depending on the variety of flower.

Sanction

Area/Regional head sanctions the loan on the basis of branch recommendation.

Security

(a) Hypothecation of goods produced. (b) Personal guarantee of the applicant. (c) Mortgage of landed property (1 times of loan) in case of loan above one acre of land to be obtained as per Instruction Cir. No. 1220.

Documentation

D. P. note & other charge documents.

Disbursement

Disbursement is to be made as per requirement.

Rate of interest

10 % ( Simple interest)

Repayment

(a) Rajanigandha- Within 3 years by 30 equal monthly installments starting from the 6 month after obtaining loan. (b) Gladiolus- Within 6 months by single installment. th (c) Rose- Within 3 years by 32 equal monthly installments starting from the 4 month after obtaining loan etc.

th

Reference circular/letter

RCD Cir. No. 269 dt:04/12/2002

6.Credit Program for Goat Rearing:

Target people

Unemployed youth who have got training on goat rearing in semi intensive system. Besides this micro credit is given for the poor.

Area of operation

All branches throughout the country.

Objectives

To alleviate poverty & unemployment problem .

Eligibility

(a) The applicant should be the permanent inhabitant of the locality. (b) Unemployed trained /experienced youth/ distressed women. (c) The applicant experienced in goat rearing at family level are to get loan on a preferential basis.

Proposal

(a) Loan proposal has to be submitted with detailed production plan. (b) By conducting survey in a prescribed form interested and eligible people to be identified.

Appraisal

Loans are determined on the basis of credit norms/ceiling given by Head Office.

In case of semi intensive system, Area/Regional head sanctions the loan on the basis of branch recommendation & Upazilla implementation committee. Sanction : In case of micro credit- Individual loan- Branch Manager - Group loan- Area/Regional head

Security

(a) Hypothecation of goats. (b) No collateral security is required. (c) Personal guarantee of the applicant

Documentation

D. P. note & other charge documents.

Disbursement

Disbursement is to be made as per requirement.

Rate of interest

10%

Semi intensive system- To be repaid within 4 /2 years including 1 /2 years grace period by 6 equal half yearly installments. Repayment : Micro credit- To be repaid within 2 /2 years including 6 months grace period by 4 equal half
1

yearly installments.

Agro-based projects.
The agro-based projects (e.g. dairy, poultry, hatchery, fishery, mixed projects, agricultural processing units, agri.products storing and marketing etc.) have been considered as thrust sector. Financing in this sector following aspects are to be considered: (a) Selection of entrepreneurs-solvency, -good will, -professional and technical experience, -capable to provide equity and security etc.

(b) Selection of projects-cost- effective & viable, -suitable in respect of communication and infrastructural facilities, -demand of the produced goods & favourable marketing facilities. (c) Debt-Equity Ratio- minimum margin 40%(Working Capital), 70:30 -Project loan.( 15% of total project cost as land value or actual value of land whichever is lower to be adjusted with the total equity). (d) Land development, link road development, electricity connection etc. are to be completed from entrepreneur's own source. (e) Recommendation from branch and regional office in respect of loan sanction is required. (f) Loan is to be sanctioned after completing technical and financial analysis of the project by the Head Office. (g) Equity is to arrange at a time or phase-wise as decided by H.O.

Security:
i) Project loan: a)1:1-the value of mortgaged property to be equivalent of loan b) Hypothecation of machinery & equipments (floating assets of the project).

Working capital:a) 1:1.5 - the value of mortgaged property to be equivalent to 1.5 times of loan..
b) Hypothecation of goods produced & procured.

Delegation :
AGM a. Project Loan Public Ltd Co. Private Ltd Co. Individual --20.00 DGM --30.00 GM --50.00 DMD --60.00 MD 250.00 200.00 150.00

b. W/C Loan

Public Ltd Co.

--

30.00

50.00

75.00

200.00

Private Ltd Co. Individual

---

20.00 15.00

30.00 20.00

40.00 30.00

40.00 30.00

Ref: Circular/Letter: Ins. Circular 3401 Dt: 05/03/02 Ins. Circular 3449 dt: 10/08/02

Other Credit Programs:


1. Credit for Employees-2000 Target group : Employees of different Govt/Semi Govt./Autonomous body/University/College/School/NGOs etc.

Objectives

To meet up the emergency/personal need (e.g. treatment, marriage, travel cost, maternity or for specific activities (e.g. agri. or non agri. purposes etc.) of employees.

Eligibility

(a) The employees of above mentioned organizations excepting Janata Bank Limited. (b) Preference to be given those who are taking salary from our branches.

Appraisal

(a) In case of salary is being disbursed from Janata Bank Limited branch, 12 months basic salary or maximum TK.1,00,000/- whichever is lower may be sanctioned. (b) If salary is not disbursed from Janata Bank Limited branch, 6 months basic salary or maximum TK. 50,000/- whichever is lower may be sanctioned.

Sanction

For sanctioning loan following papers to be obtained: (a) Employer's certificate. (b) Salary certificate/statement from the concerned organization. (c) Name of nominee (Husband/Wife/Children etc.) to be mentioned in the A/C opening form.

Security

(a) Personal guarantee of borrower's husband/wife/parents/adult children or any other 3 party guarantee to be obtained. (b) 24 for 24 monthly installments and additional one-total 25 advance dated cheques to be obtained.

rd

Rate of interest

13.50%(Changeable)

Repayment

To be repaid in 2(two) years at equal monthly installment

Reference circular/letter

RCD Cir. No.- 287 dated:- 30-06-2005

2. Consumer Credit Scheme-2003 Target group : Fixed income earners.

Objectives

(a) To improve standard of living . (b) To support purchase of various consumer durables. All branches upto Upazilla level.

Eligibility of Clients

(1) Permanent officer/staff working at Govt /SemiGovt./Autonomous body/ Nationalised Bank/University(private/public)/Training institute/Research institute/Private bank/Insurance company/International organization/Multinational company.

Sanction

RO/AO/DO level. as per delegation.

Security

(a) Hypothecation over the consumer durables. (b) In case of Janata Bank Limited employee, personal guarantee from an employee( equivalent or upgraded ranking employee). Such guarantee to be countersigned by the competent authority. Officer/staff can give guarantee for one or more loan. But sum total of one or more guarantee will not be more than non-encumbered provident fund. Loan giving authority is to be confirmed to the effect that the applicant has the capacity to repay bank loan. (c) Lien of provident fund/gratuity. rd (d) Personal guarantee of borrower's husband/wife/parents/adult children or any other 3 party guarantee to be obtained etc.

Rate of interest

14%(Changeable).

Repayment

To be repaid in 3 years at monthly installment

Main activities under credit

Personal Computer, Scanner, Air conditioner, Air cooler, Water cooler, Water pump, freeze, Television, Radio, Furniture and any other items acceptable to Janata Bank Limited.

Reference circular/letter

RCD Cir. No. 287 dated: 30-06-2005

3.Mushroom Cultivation Loan Program:

Objectives

Area of operation Eligibility Selection of borrower Loan application form & fee Mushroom varieties Loan limit Loan repayment period Security & Documentation

To meet up nutritional requirement of most of the people of the country, Creation of self-employment and reducing of poverty. : Branches involved in diversified credit program of the bank : Trained/Experienced people in mushroom cultivation and will be capable of building room in own home land. : Concerned branch of Janata Bank Limited will select borrower. : Prescribed form for crop loan (except the un useful part). Loan application form to be used as per given proforma (RCD Cir.No.293 dt:05-04-2007). No. application fee is required. : Oyster, Straw, Milky, Button and Shiitake mushroom : Minimum 5000/- and maximum 25,000/: -Short term (Maximum 10 months) : (a) No collateral is required. However hypothecation of goods/assets to be produced with loan money and 3 party guarantee from the person acceptable to bank to be obtained. (b) Usual charge documents to be obtained. : 8% (Changeable from time to time as per bank's interest norms). : To be repaid by 8(Eight) equal monthly installments including 2 months grace period. : Branch Manager( irrespective of grade) as per RCD Cir.No.293 dt:0504-2007. : Throughout the year. : RCD Cir.No.293 dt:05-04-2007.

Rate of interest Repayment schedule Sanction Disbursement period Reference

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