MDB CAR LOAN PPG – VERSION 1.

1 – APRIL 2015

MDB CAR LOAN

PRODUCT PROGRAM
GUIDELINE

Version: 1.1
Release: April 2015

RETAIL DISTRIBUTION
Midland Bank Ltd, Bangladesh

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

APPROVAL SHEET
APPROVAL INFORMATION:

Name of the Document: MDB Car Loan Product Program Guideline

Version: 1.1
Release Date: April 2015
Next Review Date: As and when required (usually once a year).
Approving Authority: Endorsed by MDB Management and approved by Board of Directors
Business Unit: Retail Distribution
Country: Bangladesh
Linked Documents: Car Loan PPG – Version 1.0

APPROVAL:
NAME & DESIGNATION SIGNATURE DATE
PREPARED BY

Rahat Masood
First Vice President, Retail Distribution

VERIFIED & ENDORSED BY

Md. Ridwanul Hoque

SVP & Head of Retail Distribution

CONCURRED BY

Mohammad Syejuddin Ahmmed

Head of Internal Control & Compliance Division

Nazmul Ahsan
Head of Treasury & Market Risk (Front)

Imteeaz Ahmed
Head of Human Resources Management Division

Md. Hasanul Haque

Head of Board Division

Khondkar Towfique Hossain

Head of International Division & NRB

Md. Zahirul Islam, FCA

Head of Financial Administration Division

Mohammad Iqbal
Head of Emerging Corporate & Special Programmes

Md. Manirul Islam

Head of Credit Risk Management Division

Muhammad H. Kafi
CIO & Head of Operations Division

Khondoker Nayeemul Kabir

Deputy Managing Director

APPROVED BY

Md. Ahsan-uz Zaman

Managing Director & CEO

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

MDB CAR LOAN PPG

1.0 CUSTOMER SEGMENTS
SL. RATIONALE /
EXI STING PROPOSED
NO. MITIGATION
1.1 SALARIED No change Not applicable
Employees of Government Organizations,
Banks, Multinational Companies, Large &
Medium Local Corporate Houses, Reputed
Educational Institutions, Non-Government
Organizations, Supranational Bodies, and Semi-
Government Organizations.
1.2 SELF-EMPLOYED PROFESSIONAL ADDITIONS Account relationship and
Consists of self-employed professionals, e.g. Customer has to maintain account with experience criteria
Doctor, Engineer, Architects, Chartered and Cost Midland Bank Ltd. or with other banks for mentioned.
Accountant etc at least 12 months.

The customer should be in the same

profession for a minimum period of 2
years.
1.3 BUSINESS PERSON ADDITIONS Account relationship and
Consists of businesspersons in reputable The customer should be in the same experience criteria
business. business for a minimum period of 2 mentioned.
years. Customer has to maintain account
The customer should be in the same business with Midland Bank Ltd. or with other
for a minimum period of 3 years. banks for at least 12 months.

1.4 LANDLORD LANDLORD Landlord segment can be

Not Mentioned Consists of landlords having a stable
source of earnings from rented
premises(s).
Proof of ownership documents is
mandatory for considering rental income
of any property. However, rental income
from Semi-Pacca/ Tin shed building will
not be considered.
1.5 100% SECURED AGAINST FD / Monthly 100% SECURED AGAINST FD /
Savings Schemes Monthly Savings Schemes
Not Mentioned Consists of salaried and other segments.
considered for car loans.
Checking photocopy of
ownership documents of
the rental premises will
confirm ownership by the
applicant(s).
This is fully secured by
cash.

2.0 LOAN AMOUNT

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
2.1 MINIMUM AMOUNT MINIMUM AMOUNT As per Bangladesh Bank BRPD circular
Not Mentioned BDT 200,000/- (Two Lac Taka) No. 12, dated August 13, 2014 under
Only Regulation 16 for consumer financing, a
2.2 MAXIMUM AMOUNT MAXIMUM AMOUNT regulation for finance limit has been stated
For New Car BDT 3,000,000/- (Thirty Lac For New / Reconditioned Car in the below mentioned manner:
Taka) Only BDT 4,000,000/- (Forty Lac “The banks shall not allow auto loan
For Reconditioned Car BDT 2,000,000/- Taka) Only (including insurance) exceeding TK. 4
(Twenty Lac Taka) Only million for every individual under this head”.

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

3.0 TENOR
SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
3.1 MINIMUM TENOR MINIMUM TENOR Minimum tenor should be
Not Mentioned 1 year (12 months) clearly stated to avoid any
confusion.
3.2 MAXIMUM TENOR No change Not applicable
5 years (60 months)

NOTE:
 No fraction of year is allowed. It will always be rounded down.
 Loan tenor will be decided based on the age of the property owner and / or the financially solvent person, whichever is lower.
 Tenor will end one year before the allowable maximum age of the applicant to adjust the fractional EMI in case of variable
interest rate.

4.0 APPROVED BRANDS

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
4.1 Not mentioned. (i) Toyota (ii) Nissan (iii) Honda  At present, consumers prefer
(iv) Mitsubishi (v) Maruti (vi) Suzuki different brands rather than buying
(vii) Subaru (viii) BMW (ix) Mercedes the conventional brands available in
(x) Volvo (xi) Audi (xii) Hyundai the country (e.g. Toyota, Nissan
(xiii) Kia (xiv) Proton (xv) Volks Honda etc.). Considering the
Wagon
consumer’s preferences, a number
(xvi) Mazda (xvii) Ford
of brands are included.
 As per Bangladesh Bank BRPD
circular No. 12, dated August 13,
2014 for consumer financing, we can
finance maximum 50% of the car
price. Hence the re-sale value of the
proposed brands can be assumed to
be more than the financed amount.

5.0 LOAN TO VALUE (LTV) RATIO

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
5.1
Not Mentioned. 50% of the vehicle value. As per Bangladesh Bank BRPD
circular No. 12, dated August 13,
2014 for consumer financing, a new
regulation for debt-equity ratio has
been stated in the below mentioned
manner:
“While allowing auto loans, the
financing facility shall be provided at a
maximum debt-equity ratio of 50:50”.

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

6.0 ADDITIONAL FACILITY

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
6.1 Not Mentioned. 2 (Two) facilities per individual for Conditions for additional
maximum (cumulative) exposure of BDT facilities clearly mentioned.
4,000,000/- (Forty Lac Taka) Only

Second facility to be entertained only

after completion of satisfactory
repayment of the first facility at least for
12 months.

CONDITIONS:
(1) Only one 30 DPD+ in last 12 months,
(2) No 60 DPD+ in last 12 months,
(3) No over dues at the time of applying.

7.0 APPLICANTION CRITERIA

Maximum 02 (Two) applicants are allowed for a single facility.
SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
7.1 Not Mentioned. PRIMARY BORROWER Conditions for number of applicant
Owner of the vehicle must be the primary (including condition for primary
applicant for any car loan application, if applicant) clearly mentioned.
the vehicle owner and the main financially
eligible person happen to be different.
7.2 Not Mentioned. CO-BORROWER / JOINT BORROWER  House wife can get a tax certificate.
Now a days in Bangladesh, Tax
 Only spouse is allowed certificate is required in various
(Vehicle will be registered in the joint purposes like vehicle registration,
name Primary applicant and Account land registration, Bank loan etc.
Midland Bank Ltd.)  A housewife can avail tax certificate
 House wife can only be the primary against any legitimate income (rent,
applicant if she has a Tax certificate others etc.).
(with positive income).  A housewife can also have Tax
 If income is aggregated, relevant certificate without having income. In
documents must be provided and must that case tax return submission
also meet the following income criteria: amount will be zero.
 Primary Applicant - Minimum income
BDT 30,000/- (Thirty Thousand Taka)
Only.
Secondary Applicant - Minimum income
BDT 20,000/- (Twenty Thousand Taka)
Only.

8.0 AGE CRITERIA

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
8.1 MINIMUM AGE No change
Primary applicant / borrower’s
minimum age should be 21 years

8.2 MAXIMUM AGE MAXIMUM AGE

50 years Salaried
62 years or retirement date as mentioned in
Letter of Introduction (LOI) whichever is lower
at the end of the loan tenor.

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 MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

Self-employed Professional / Generally self-employed &

Businessperson and Landlord – business people tend to continue
65 years at the end of loan tenor. their career until they become
physically incapable or are
deceased.
100% Secured against FD / MSS –
70 years at the end of loan tenor. However, if There is very low risk in customer
anyone wants to change the security mode default as the FD / MSS is liened
(i.e. to withdraw lien from the security with the Bank and the Bank will
provided), then income assessment must be have the authority to encash the
done and the tenure will be as per PPG (i.e. security at the time of customer
62 years for salaried individuals and 65 years default due to physical incapability
for Self-employed Professional / or deceased cases.
Businessperson and Landlord).
NOTE:
 For application where joint borrower is available, applicant with the higher age will be considered to determine maximum tenor
of the facility.

9.0 MINIMUM INCOME REQUIREMENTS

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
9.1 GOVERNMENT EMPLOYEE ADDITIONS  Income Aggregation
Minimum income must be BDT 25,000/- (Twenty criteria is mentioned
Five Thousand Taka) Only. INCOME AGGREGATION
Minimum aggregate income must be
OTHER SALARIED BDT 30,000/- (Thirty Thousand Taka)
Minimum income must be BDT 30,000/- (Thirty only whereas the primary applicant must
Thousand Taka) Only. have minimum income of BDT 20,000/-
(Twenty Thousand Taka) only.
SELF EMPLOYED
Minimum income must be BDT 30,000/- (Thirty
Thousand Taka) Only.

NOTE:
 Aggregate income will be the sum of all earnings of the incumbent from different sources duly supported by valid income
documents.

10.0 WORK EXPERIENCE

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
10.1 GOVERNMENT SALARIED No change
Must be confirmed employee

OTHER SALARIED
Customer should be confirmed
employee and should have a total of two
years work experience including
experience with the present and
previous employer.

They must be employees of

multinationals, middle and large
corporate bodies and business entities,
NGOs and other reputable entities.

CONTRACTUAL EMPLOYEES CONTRACTUAL EMPLOYEES Employees of the supranational

Not Mentioned Contractual employees of UN Bodies and organizations and development
Development Organizations viz. UN, organizations are usually hired on a

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 MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

UNDP, UNICEF, UNESCO, FAO, WHO, contractual basis. They have

CARE, Save the Children, IFC, SEDF, relatively higher income and they
WORLD BANK, IMF, ADB etc. can be can avail similar job even when
eligible provided the following conditions their present contract expires due
are met: to their expertise and association
 Minimum length of service in this with such organizations.
kind of organizations should be at
least 5 (five) years.
 Last 02 (two) contract renewals
along with the copy of the
appointment letter is provided.

10.2 SELF-EMPLOYED PROFESSIONALS SELF-EMPLOYED PROFESSIONALS Self employed experience clearly

Not Mentioned Customer must have 2 (Two) years mentioned.
professional experience in the industry.
10.3 BUSINESS BUSINESS Business experience mentioned
Not Mentioned Maximum 02 (Two) business clearly.
experiences can be considered and each
of the businesses must have minimum
02 (two) years business experience.
10.4 LANDLORD No change Not applicable
Not Applicable

NOTE:
 In case of assessing A/C from customers other diversified business entity where business started less than 02 (two) years ago,
proof of continuation of previous business is required.
 In case of contractual employees, the tenure of the car loan must mature at least 2 months before the work contract expires.

11.0 ADDITIONAL INCOME

Income apart from salary will be considered if supporting docs are provided and reflected in bank statement.
SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
11.1 Not Mentioned  Additional Income from other sources will also be Additional income criteria clearly
added to monthly net income provided the mentioned.
customer is able to submit documentary
evidence of the same for at least 12 (twelve)
months.
11.2 Not Mentioned  When customer receives part of his salary in
cash in addition to his other allowances will be
added to his gross salary to arrive at an overall
monthly remuneration. Income is subject to
substantiation from the respective company.
11.3 Not Mentioned  In case of rental income, at least 15% of the total Semi-Pacca/ Tin shed building are
rental income must be reflected on the Bank considered variable income as well
statement. However, rental income from Semi- as risky as they can be easily broken
Pacca/ Tin shed building will not be considered. down or rebuilt anytime.
NOTE:
 Annual / half yearly or variable income like bonus, LFA (if not monthly), commission, TA/DA, phone bill etc. will not be
considered in gross monthly salary/income. Any other salary/income components which are not paid in monthly basis will not
be considered.

12.0 ACCOUNT RELATIONSHIP

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
12.1 SALARIED SALARIED Criteria clearly mentioned
Not Mentioned  Full Salary Reflection –
 Employees of Multinational Companies (MNC)
to be entertained immediately after joining the

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

organization provided the applicant is a

confirmed employee and has total work
experience of more than 01 (one) year including
experience with the present and previous
employer. Declaration of salary in LOI or Take
home / Net salary whichever is lower to be
considered.

 06 (six) Salary reflections required if working in

any other organizations other than MNC.
Declaration of salary in LOI or Take home / Net
salary whichever is lower to be considered.

 Partial Salary Reflection –

Pay slips for the last 06 (six) months must be
provided to support additional income. However,
the additional income must be mentioned in the
organization’s LOI. Declaration of the combined
salary in LOI or Take home / Net salary
whichever is lower to be considered.

 Full Salary Reflection in Cash –

Salary completely received in cash is not
acceptable in any case whatsoever.
12.2 SELF-EMPLOYED PROFESSIONALS SELF-EMPLOYED PROFESSIONALS
Not Mentioned Two Bank Accounts in the name of the applicant
(i.e. Doctor) may be considered subject to the fact
that there are no interbank transactions. However,
if the account is a joint account with the Co-
Applicant or Spouse (whose income is not
considered in assessment), 50% income can be
considered after assessing that Bank statement.

12.3 BUSINESS BUSINESS

Not Mentioned  Limited (Pvt. & Public) Company A/C: Two  In a partnership
accounts, both being existent for at least 12 business, partners tend
months, in the name of the same business entity to open joint accounts
may be considered subject to the fact that there instead of business
are no interbank transactions. Personal Bank account for transaction.
account statement of the applicant must be
submitted to support the earnings from the  Business transaction in
company. joint accounts with
spouse is one of the
Business Ownership Requirements for Limited common practices in
Companies: Bangladesh.
Private Limited Company - 20%
Public Limited Company - 5%  Switching Banking
relationship is a common
 Partnership Company A/C: Two accounts, practice in Bangladesh if
both being existent for at least 12 months, in the an individual of
name of the same business entity or in the Businessman gets better
name of all the partners involved in a particular offers in other Banks
business may be considered subject to the fact (e.g. getting more OD
that there are no interbank transactions. limit, less interest rate in
Personal Bank account statement of the financing facilities etc.).
applicant must be submitted to support the
earnings from the company.

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

 Proprietorship Company A/C: Two accounts

in the name of the business entity and / or in the
personal name of the proprietor may be
considered subject to the fact that there are no
interbank transactions. However, if the account
is a joint account with the Co-Applicant or
Spouse (whose income is not considered in
assessment), 50% income can be considered
after assessing that Bank statement.
12.4 LANDLORD LANDLORD  Semi-Pacca/ Tin shed
Not Mentioned At least 15% of the total rental income must be building are considered
reflected on the Bank statement. However, rental variable income as well
income from Semi-Pacca/ Tin shed building will as risky as they can be
not be considered. easily broken down or
rebuilt anytime.

NOTE:
 Apart from the mentioned account statements, other statements from different business entity will also be considered.
 In cases where customers have changed the Banking relationship, transaction done in previous Bank account statement can be
considered in order to complete continuation of latest 01 year Bank account transaction.
 Shareholding contains ownership of the borrower singly or along with the co-borrower / guarantor. However the income
assessment shall be done based on the customer’s shareholding portion only.

13.0 DEBT BURDEN RATIO (DBR)

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
13.1 Not Mentioned
Salaried Other Utilization of credit cards have
Income Range increased in the present days to
Segment Segments
a substantial amount and it is
Up to 29,999 40% 35%
also reflected on the CIB reports.
From 30,000 to 45% 40% Since it is also a liability to the
49,999
customer therefore considering a
From 50,000 to 55% 45% minimum amount in DBR
74,500 calculation will give a better
75,000 & above 60% 50% result in judging customer’s
financing eligibility.

 3% of the credit card / Unsecured OD limit will go into
DBR calculation.
 Monthly installments will not be considered in DBR
calculation for cash back secured loans, DPS, Ins
Premium, etc.
The interest rate spread
between the FD and the secured
facility is only 3% most of the
time which may be ignored while
calculating DBR as the facility
can be closed at any point in
time by encashing the FD.

Computation of income for Salaried Applicant

 Based on salary certificates/salary slips/Bank DBR
statement (6 months) Non-salaried individuals
maintain bank accounts in more
 If salary reflections in the Bank statement are not
than one bank due to proximity,
consistent due to variable allowances like overtime,
conducting business in different
the average for the last 6 (six) months or 12 (twelve)
locations and so on. Therefore, a
months should be calculated in order to consider
single account statement does
income.
not always reflect the actual
 Yearly allowances will not be considered.
income of the customer.
 Income apart from salary will be considered if

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

supporting documents are provided and reflected in

bank statement. The Doctors’ segment is
regarded separately by all FI
Computation of income for Non-Salaried Applicant: because of their high income
1. For non-salaried applicants, the business credit turnover and excellent repayment history.
for any particular business with any of the banks may be Currently the two topmost
used to compute the income based on the average organization namely Delta BRAC
Industry Net Profit Margin. The bank account should be Housing Corporation & Standard
existent for a minimum period of one year. Two bank Chartered Bank is entertaining
accounts may be considered for this purpose. the facility of doctors’ declaration
of income in cases where bank
2. For applicant(s) who are directors of a limited company statements does not reflect
or partners of business concerns - to compute his significant transaction.
income based on his shareholdings only.

3. For Deposit Accounts:

Income will be calculated based on the monthly average
credit turnover where 60 % of average balances will be
used as a maximum EMI capability for the particular loan.

 Computation of income for Self-Employed Professional /

Doctors:
Self employed Doctors: Based on the bank statement,
50% of monthly average credit turnover will be considered
as income.

Maximum 02 (Two) Bank account statements of the

concern meeting such criteria will be considered for
income assessment.
OR
Doctors having no significant account reflection will
provide declaration of income in their official letter head
pad or company letter head pad and will be assessed
based on the declared amount after comprehensive
Contact Point Verification (CPV) by the Third Party
Verification Agency as per verification criteria mentioned in
Clause 38.1.

Computation of income for Landlord Applicant:

Reflection in the rental agreement or rent receipt and bank
statement (minimum 15% a/c reflection). When rental
income is received in cash, it will be verified through the
Bank’s enlisted third party verification company.

14.0 LOCATION OF THE BORROWER

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
14.1 Primary Applicant / Main Borrower / Co-Borrower No change Not applicable
 Customer must have present address/residence
within the city/town areas where the bank has its
own branch at the time of availing loan facility.

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

NOTE:

Special consideration will be given to the following customer segments who may either reside or work outside Dhaka & Chittagong
Metropolitan Area:
 Govt. Official,
 Doctors having more than 5 years of experience or FCPS certificate,
 Employees in the position of ‘Manager’ or above of MNC and reputed large local company having HO in Dhaka or Chittagong,
outside Dhaka & Chittagong where MDB has branch representation.

15.0 GUARANTOR’S ELIGIBILITY

1 (one) Personal Guarantee is mandatory for all segments of Carl Loan proposals. Guarantor must be eligible as per following:
SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
15.1 Not Mentioned  Spouse/ Immediate Family Guarantor Eligibility clearly
members only mentioned.

16.0 TYPE OF VEHICLE TO BE FINANCED

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
16.1 BRAND NEW VEHICLES BRAND NEW VEHICLES Type vehicle to be financed
Not Mentioned Vehicles imported directly from the company and is clearly mentioned
sold through local distributors in Bangladesh. (e.g.
Navana Group for Toyota, DHS Motors Ltd. for
Honda, Rancon Motors Ltd. for Mercedes, Pacific
Motors for Nissan, Executive Motors for BMW,
Meghna Automobiles Ltd. for Kia etc.)
16.2 RECONDITIONED VEHICLES RECONDITIONED VEHICLES
Not Mentioned Vehicles used in Japan for a certain period, and
then refurnished and send to Bangladesh as
recondition vehicle, people brought the car and
registered the vehicle in Bangladesh and start using
it. Currently about 95% vehicle sold in the market
are Japanese brands reconditioned vehicle, only few
dealers sell brand new Japanese and other brand
cars. Requirement for financing to this type of
vehicle is very high, and usually the conditions of
these vehicles are almost like brand new cars and
durable for 5-7 years without any trouble.

17.0 TYPE OF SECURITY / COLLATERAL

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
17.1 The financed vehicle will be registered in the No change Not applicable
joint name of Primary applicant and Midland
Bank Ltd. as per existing BRTA rules.

18.0 CATEGORIZATION OF DEALERS

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
18.1 Not Mentioned. - Years in Business For Car Loan, the Bank will have a list of Auto
- Reputation in the market Showrooms like the real estate companies.
- Sale volume per month. The key considerations are highlighted. It is
- Owner’s profile preferred that car loans are sanctioned based
- Size & location of showroom on the list of showrooms. However, on case to

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

- Financial strength case basis car loans can be sanctioned based

- Number of staff on showrooms outside the categorized list and
- Etc. car bought directly from port.

19.0 MAXIMUM AGE OF THE VEHICLE AT LOAN MATURITY

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
19.1  Japanese Brands – 10 (ten) years No change Not applicable
 Other Brands – 8 (eight) years

20.0 MODE OF DISBURSEMENT

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
20.1 Bank’s sanctioned amount shall be disbursed through No change Not applicable
Payment Order/ Bank Draft directly to the
supplier/seller upon receipt of registration and
insurance coverage.

21.0 MINIMUM DOCUMENT REQUIREMENTS

The minimum document requirements for any car loan proposal are furnished below:
SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
21.1 COMMON DOCUMENTS FOR ALL SEGMENTS No change Not applicable
 Duly completed & signed application form.
 1 Passport sized recent photograph (standard
format) of all the applicants.
 Photocopy of valid passport OR National ID of all
the applicants
 Photocopy of Latest TIN certificate.
 Copy of loan sanction letter along with repayment
account statements (for existing loans reflected in
the CIB report).
 Price quotation of the vehicle.
 Rental agreement & house/flat ownership
documents (for land lord or land lady).
21.2 SALARIED SEGMENT No change Not applicable
 Salary certificate in MDB prescribed format.
 Photocopy / Original pay slip (for partial cash
salary).
 Last 6 (Six) months Bank account statement of
salary account.

21.3 SELF-EMPLOYED SEGMENT No change Not applicable

 Certificate of professional degree (e.g. MBBS
etc.)
 Certificate of Membership with respective
Professional Association (e.g. BMDC etc.)
21.4 BUSINESS SEGMENT No change Not applicable
(i) PROPRIEORSHIP BUSINESS
 Copy of Trade License that reflects minimum 3
(Three) years experience.
 Last 1 (One) year Bank account statement.

(ii) PARTNERSHIP BUSINESS

 Copy of Trade License that reflects minimum 3
(Three) years experience.
 Partnership Deed

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

 Form-1 if registered by RJSC (Not Mandatory).

 Last 1 (One) year Bank account statement.

(iii) LIMITED COMPANY (PUBLIC / PRIVATE)

 Copy of Trade License that reflects minimum 3
(Three) years experience.
 Certificate of incorporation (RJSC certified).
 Certified Memorandum & Article of Association
(RJSC certified).
 List of Directors/ Form XII (RJSC certified).
 Certificate of Commencement for business of
Public Limited Company.
 Last 1 (One) year Bank account statement.

21.5 LANDLORD SEGMENT No change Not applicable
 One Personal Guarantee
 Rental Agreements / Rental Receipts
 Proof of property ownership/ municipal tax
receipt.
 Bank account statement of the account where
rental income is deposited.

NOTE:
(i) If the customer is a director of any limited company under Businessman Segment then: Board resolution or undertaking
required from the company mentioning that they will deposit all dividends/salary (if any) received by the applicant to MDB
account.
(ii) For limited company customer, the company should undertake a prior intimation from MDB for any change or dilute of
shareholding of the applicant.

22.0 MANDATORY DOCUMENT REQUIREMENTS (IN ADDITION TO STANDARD DOCUMENTS)

These criteria are necessary in order to ensure optimum documentation regarding customer identification, extent of the
involvement of the customer, engagement of bank officials in the process:

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
22.1 Not Mentioned At the time of application submission: Other document
 Customer KYC duly filled and signed by the requirements clearly
introducer and Branch Manager / Sales mentioned
Manager (as per Annexure 1).
 All fields of the first 4 pages of the application
form properly completed in BLACK INK only.
 Most Important Document (MID) duly signed.
 Forwarded by source / officer and
recommendation by permanent employee of
MDB (preferably line managers).
 All documents (except bank statement and
property related legal documents) required for
assessing the facility eligibility must be
marked as “ORIGINAL SEEN” by the
concerned official of MDB before submitting.
 All documents (in relevant pages) to be
signed by one of the borrowers to endorse
the authenticity.

To be submitted prior to disbursement:

 Insurance Coverage for Car Loan Facility
 Undated cheque for the Loan Amount

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

 Price Quotation of the vehicle.

 Money receipt of comprehensive vehicle
insurance.
 Copy of Personal TIN certificate.
 Copy of National ID card
 Passport size photograph duly attested.
 Board resolution in case of PDC from
company account

23.0 INSURANCE
SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
23.1 Comprehensive 1st party insurance of vehicle No change Not applicable
favoring the bank required throughout the loan
tenor. Money receipt for comprehensive
insurance to be provided prior to disbursement.
For subsequent years, customer is to renew the
comprehensive insurance and provide the
money receipt to CAD.

24.0 CHARGE DOCUMENTS

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
24.1 Not Mentioned Prior to the disbursement of the facility, the List of Charge
following documents are to be signed by the Documents
applicants and the customer signs must be mentioned.
verified by bank official with pencil.
List of Documents:
 Letter of Continuation
 Letter of Agreement
 Letter of Revival
 Letter of Disbursement
 Irrevocable letter of authority
 Demand Promissory Note
 Letter of Hypothecation
 Undertaking to purchase
 Insurance Coverage for Car Loan Facility
 Banking Agreement Letter.

25.0 WAIVERS & FLEXIBILITIES ON 100% CASH BACKED FACILITY

In case of 100% secured facility, the bank can instantly resort to liquidate the security and settle the outstanding loan amount
(if, any). As a result, absence of fulfillment of regular requirements viz. telephone at home / office, work experience etc. does
not preclude the bank from fully settling the outstanding amount in case of default. Considering this cushion, the proposals of
waivers and flexibilities are made:
SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
25.1 MANDATORY REQUIREMENTS MANDATORY REQUIREMENTS

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 MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

Not Mentioned (i) Loan Tenor to be met as per the Since secured financing is
customer segment criteria in PPG. 100% cash backed, it can
(ii) Maximum age at the time of be exempt of elaborate
underwriting: 70 years. documentation in order to
(iii) Minimum age at the time of ensure simplicity in the
underwriting: 21 years. process while upholding
(iv) Bank statement and income risk mitigation aspect.
substantiation documents to be
furnished to establish legitimate
income source & some cash flow.
25.2 WAIVERS WAIVERS
Not Mentioned (i) Telephone at Home / Business
(ii) Work / Business Experience
(iii) Shareholdings in the Company
(iv) Location of Borrower (outside
Dhaka and Chittagong Metropolitan
Area)
(v) Income Assessment
25.3 SECURITIES SECURITIES
Not Mentioned (i) FD with MDB (90% of FD will be
sanctioned as facility amount).
(ii) Monthly Savings Schemes (MSS)
with MDB (90% of Savings amount
will be sanctioned as facility
amount)
NOTE:
 If customer wants to change the security mode of the facility (i.e. from 100% cash backed to normal financing), then all the
above waivers will be become invalid and the file will be re-assessed as per standard practice and the following criteria must be
met:
(i) The repayment history of the facility must be regular.
(ii) If the income assessment is unsupportive, the customer will not be entitled to change the security mode.

26.0 PROCESSING FEES

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
26.1 1% of loan amount + 15% Value Added No change
Tax (VAT).

27.0 CURRENCY
SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
28.1 Bangladesh Taka (BDT) only No change Not applicable

28.0 INTEREST RATE

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
28.1 UNSECURED LOAN UNSECURED LOAN
Presently 17.00% per annum with monthly 15.00% per annum with monthly rest. Interest
rest. rate is subject to change by ALCO based on
market situation.
28.2 SECURED LOAN SECURED LOAN
Not Mentioned. 3% spread against any interest rate of FD /
MSS.
NOTE:
 In cases where there are more than 01 (one) FD with different interest rates, weighted average interest rate to be calculated
and a 3% spread to be added to determine the interest rate for financing.

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 MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

29.0 PENAL INTEREST

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
29.1 2.00% higher rate will be applicable on overdue No change Not applicable
amount over the prescribed rate.

30.0 EARLY SETTLEMENT FEES

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
30.1 2% fee of the OUTSTANDING AMOUNT No change As per Bangladesh Bank
BRPD Circular No. 19
dated 22.12.2009

NOTE:
 CAD to take all the initiative for processing of early settlement as per customer’s request, calculate new EMI and communicate
with the customer accordingly.

31.0 PARTIAL PREPAYMENTS

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
31.1 Not Mentioned. 2% fee of the PARTIAL PAYMENT Since this is long term financing,
AMOUNT customers sometimes seek to
reduce liability from their part.
NOTE:
 Minimum 20% of the principal outstanding amount must be settled.
 Partial payments are allowed once a year.
 CAD to take all the initiative for processing of partial settlement as per customer’s request, calculate new EMI and
communicate with the customer accordingly.

32.0 FIRST PAYMENT DATE

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
32.1 30 days from the date of disbursement / first No change Not applicable
disbursement in case of partial drawdown.

EMI will be based on disbursement amount in

case of partial disbursements.
NOTE:
 No grace period / moratorium period will be allowed.

33.0 REPAYMENT METHOD

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
33.1 Through Equal Monthly Installments (EMI) to be No change Not applicable
realized by:

Standing Instructions (SI) from MDB A/C, or

34.0 CONTACT POINT VERIFICATION (CPV)

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

SL.
EXISTING
NO.
34.1 Applicable for all segments -
 Telephone verification of residence
and office / business.
 Contact numbers (LAN / Mobile
Phone) 1 (one) Land phone at office is
mandatory.
 Physical verification of residence and
office / business addresses.
 Bank statement
RATIONALE /
PROPOSED
MITIGATION
ADDITIONS This will help the Bank to
keep the customer’s
Verification will be done through branch/ Third information updated in
Party Verification Agency. terms of KYC.
Salaried - Employment details. Since the verification
Self-employed Professional - Professional requirement differs
details including professional practice addresses according to customer
along with the following: segment, it needs to be
 Number of working days the doctor attends specified so that a standard
chamber or office, guideline is in action.
 Average number of patients attended per
day,
 Minimum fees charged per patient (both
new and existing to be shown separately),
 Photograph of the practice chamber.
Businessman – Business details.
Landlord - Rent verification with photos.

Validity of Verification Report

All the verification reports will be considered valid
for 60 (sixty) days. Re-verification is mandatory if
application is not approved within the mentioned
time.

Waiver of Physical Verification of Customer

Details
Customers who are already enjoying secured
facilities (Home / Car Loan) having regular
repayment for more than one year.

35.0 CREDIT INFORMATION BUREAU (CIB) REPORT

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
35.1 Up to date and clean CIB report to be obtained No change Required as per
in the name of the customer from Bangladesh Bangladesh Bank
Bank. guideline.
NOTE:
The CIB will be considered valid for maximum 60 days from the date of inquiry as the CIB database in Bangladesh Bank is
updated monthly.

36.0 NATIONALITY
SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
36.1 Not mentioned Bangladeshi (resident) Nationality clearly mentioned.
only

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

37.0 VALIDITY / AVAILABILITY PERIOD

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
37.1 Loan to be availed within 30 No Change Not Applicable
days from the date of sanction
advice

38.0 APPROVING AUTHORITY

SL.
EXISTING PROPOSED RATIONALE / MITIGATION
NO.
39.1 Credit Committee / Managing No change Not Applicable
Director / Executive Committee (EC)

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

39.0 APPROVING AUTHORITY FOR CAR LOAN OUTSIDE PPG CRITERIA

Following exceptions to the MDB Car Loan features and other credit criteria mentioned above in this document are permissible.
To deal with the exceptions, an authority-level based approach is followed whereby individuals in the credit chain at different
levels are grouped in three categories in three categories as follows:

Level 1: Head of CRM

Level 2: DMD
Level 3: Managing Director

List of permissible exceptions which may be approved by Level 1, Level 2 and Level 3 authorities are given below. Any
exception outside the permissible exception grid will fall under Level 3 requiring MD’s exceptional approval with strong
justification.

Level 1 Level 2 Level 3

Criteria
(Head of CRM) (DMD) (MD)
May be referred under strong
Interest Rate No Authority No Authority
justification within ALCO band
No Authority Waiver of requirement on a
Processing Fee No Authority
case to case basis
No Authority
Partial Prepayment Fee No Authority May be waived

No Authority 50% waiver (1% of the

Early Settlement Fee Full waiver of requirement
outstanding loan amount)
Relaxation of requirement on
a case to case basis. Must be Relaxation of requirement on
No Authority
Eligibility of Guarantor reasonable relaxation a case by case basis. Must be
supported by comments/ reasonable relaxation.
analysis.
Salaried Executives: Min 3
Employment/ Business No Authority months at present company Up to but not less than 6
Length Professionals: Min 6 months months for any applicant
Businessperson: Min 1 year
No Authority Relaxation up to 5% in all Relaxation up to 10% in all
DBR
slabs slabs
Relaxation of requirement on
a case by case basis. Must be Relaxation of requirement on
Identification and No Authority
reasonable relaxation a case by case basis. Must be
Income Documents
supported by comments/ reasonable relaxation.
analysis.

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

40.0 PROPOSED PROCESS FLOW FOR MDB CAR LOAN

FRONT LINE CREDIT RISK MANAGEMENT (CRM)

Eligibility not met,
Step 2: CRM screens docs, collect satisfactory CPV report (both
DECLINED
Step1: Front line (F/L) forwards applicant & Car Showroom), statement authentication report & quotation
complete booklet to CRM verification report from enlisted agents & assess loan eligibility

Eligibility not met or

Doc(s) incomplete Eligibility met &
Deferred
primary docs
are in order?
Still eligibility
not met Docs re-submit, Eligibility met &
primary docs are in order?

Declined
Step 3: CRM prepares proposal & forwards it to Approving Authority
(AA) for approval

AA declines the proposal

AA approves
Issue LETTER OF COMFORT1
the proposal
Declined
POSITIVE verification
report
Step 4: CRM sends all the docs to CAD for disbursement CRM/Branch
conducts Car CPV

Step 5: CAD checks underwriting parameters, issues document checklist, Final Sanction Letter, NEGATIVE verification report
VENDOR purchase order and a BRTA request letter to register the vehicle in the joint name.

Declined

NEGATIVE verification report

CAD verifies
car registration Step 6: CAD updates system, passes accounting entries, charges
POSITIVE verification processing fees, stamp fees & issues Pay Order.
CAD sends back the file to CRM with a report report

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

NOTE 1:
Rationale for Proposing “LETTER OF COMFORT”

STEP 2: It has been found that now a days, consumers (mainly residents of Chittagong) prefer to purchase cars directly from
Chittagong Port (through importers) to get good discount on car price but on the other hand, it is not possible to conduct CAR
CPV which are inside port area as it is restricted and moreover as per our existing process flow it is mandatory to conduct CPV
before obtaining approval from Approving Authority.

Car loan market has become very competitive and the contenders are always coming out with new ideas to faster the approval
process hence also getting the privilege from the car vendors/showrooms to get reference for car loans. It has become a
practice for the vendors to release only those cars from the port that has a sale confirmation from the buyer. As a result, it has
been also observed that now a days, the importers asks for a COMFORT LETTER from the Bank in favor of the customer just
to understand the customer’s eligibility after which they will pay Govt. Taxes to release the car from the port. And other Banks
are also giving such comfort to the vendors to maintain good relationship with the customer and the vendors. Therefore, to be
in line with the competitors, we are proposing to issue “LETTER OF COMFORT” only for those customers who prefer to
purchase Car directly from the port. In that case, the Car CPV will be obtained after issuance of LETTER OF COMFORT and
before obtaining final approval from approving authority.

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

41.0 PORTFOLIO MANAGEMENT (Proposed)

SL. RATIONALE /
EXISTING PROPOSED
NO. MITIGATION
41.1  DELINQUENCY MANAGEMENT No Change Not Applicable
A dedicated collection department will be set up to ensure retail asset quality and
continuous monitoring on repayment track of borrowers. The collection process for
car loan starts when the account holder has failed to meet one or more contractual
payment (Installment). It therefore becomes the duty of the Collection Department
to minimize the outstanding delinquent receivable and credit losses. The collector’s
responsibility will commence from the time an account becomes delinquent until it
is regularized by means of payment or closed with full payment amount collected.
The goal of the collection process is to obtain payments promptly while minimizing
collection expense and write-off costs as well as maintaining the customer’s
goodwill by a high standard of service.

 To coordinate with the in-house lawyers/ external law firms for court settle
or early settlement issues
 All charges realizations
 Coordinating with Asset Operations in releasing documents
 Organizing and monitoring ‘Auction’ procedures
 Continuous evaluating borrowers profile and providing effective feedback
& suggestions for to ensure quality credit portfolio.
Critically identifying effective litigation tools for the defaulters under the prevailing
financial and civil acts.

41.2  IDENTIFICATION AND ALLOCATION OF ACCOUNTS No Change Not Applicable

When a customer fails to pay the minimum amount due or installment by the
payment due date, the account is considered in arrears or delinquent. When
accounts are delinquent, collection procedures are instituted to regularize the
accounts without losing the customer’s goodwill whilst ensuring that the bank’s
interests are protected.
41.3  COLLECTION/MONITORING STEPS No Change Not Applicable
To identify and manage arrears, the following aging classification is adopted:

Days Past Due Collection Action

(DPD)
1 – 14 Letter, Follow up & Persuasion over phone
15 – 29 1st Reminder letter & Sl. No. 1 follows (Annexure II)
30 – 44 2nd reminder letter + Single visit (Annexure III)
45 – 59 3rd reminder letter (Annexure IV)
Group visit by team member
Follow up over phone
Letters to Guarantor, Employer, Reference all above
effort follows
Warning on legal action by next 15 days
60 – 89 Final Reminder & Serve legal notice (Annexure VI)
Call up Loan (Annexure IV)
Legal proceedings begin
Repossession starts
90 and above Telephone calls/Legal proceedings continue
Collection effort continues by officer & agent
Letter to different banks/Association

As and when an account become delinquent, collection system works together to

achieve business objectives. At the beginning of the month collection unit has
taken the total asset portfolio from the system. Then all X to 149 DPD account has
to identify and allocate those accounts to the individual collectors to collect the over

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

dues on a set target basis. The respective collector has got one month time to
recover the overdue on a target based matrix. During the month, officer collection
will generate the fresh arrival to X DPD accounts once in a week and hand over
those to the collectors of front end to minimize the delinquency as well as the flow
rate.
41.4  DELINQUENT ACCOUNTS IDENTIFICATION & No Change Not Applicable
CLASSIFICATION
The delinquent accounts can be classified as three categories as follows:

 Front-End
 Mid-Range
 Hard-Core

Front-End X Dpd (1-29 Dpd)

Front-end is the first collection bucket in which delinquent accounts are identified
and at this stage, the customers are normally contacted by phone and letter, which
serves as a reminder of his/her obligation to pay the overdue amount to the bank.

Any account, which is past due by one day from his payment date, will be assigned
to respective Collectors at the beginning of the month and given one month time to
recover the dues. Telephone call should be conducted in a soft and tactful manner
in consistency with the customer service level. Collector must always do an inquiry
through the system to confirm if payment has been received before commencing
with telephone calling to avoid causing misunderstanding with the customer.

Initial telephone contact should be directed at the office. If the customer cannot be
contacted, telephone call should then be made to the residence telephone number.
Upon successful contact with a customer, the collector will tactfully inquire about
the reason for not paying the minimum payment due. The collector will then
proceed to obtain a promise to pay for the overdue installment along with the penal
interest.

If collection letter or statement returned from the customer due to change of

address, it is the responsibility of the respective collectors to collect the new
address and telephone number and on some extent they could use the external
agency for update the same. The collectors should ask the customer to provide
written instruction of address change to the customer services department and at
the same time record the new address and telephone no into the banks system

Selective letters can be issued to customers who are difficult to contact through
telephone.

Mid-Range 30 & 60 Dpd (30 - 89dpd)

Mid-range is the bucket in which the account is considered to be seriously

delinquent thus collection efforts must be more intensive, as the account has
threatened our asset. When the front-end delinquent collection effort fails to obtain
installment, the account will automatically age into the 30 DPD and subsequently
60 DPD delinquent category.

These are accounts, which flow down from Front-end. Collectors must exercise a
more aggressive approach at this stage as the customer has failed to submit a
payment even after Front-end efforts.

Collection letters also send to the customers reminding the customers to pay the
overdue within due date.

The Collector must review and analyze the reason(s) for delay in payment. Upon
successful contact with the customer, the collector must secure a payment date.
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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

Constant telephone calls should be made to those customers who have given
numerous broken promises.

Seeking assistance letter to the guarantor or on some extent to the employer may
be an effective

instrument at this stage.

Hard-Core - 90 & 120 Dpd ( 90-149 Dpd)

90+ DPD accounts are considered hard-core delinquency and collection efforts are
to be more intensified than 30 DPD and 60 DPD accounts. Interest to be
suspended at this stage of delinquency (90 DPD).

Extra telephone calls and letters are mandatory. Final reminder letter & Guarantee
call up letter must be sent to the customers and guarantors informing the
consequences and demanding the payments. Intensive visits are also conducted
on accounts for immediate settlements. Requests for waiver are entertained incase
of settlement at one go payment.

Reschedule can also be offered in some cases as an exception. When recovery

opportunities are considered good through legal notice, collectors should make
recommendations for legal notices if necessary but not as mandatory.

Recovery management 150+ DPD :

The account in150+ DPD is provided monitored and tracked separately other than
the above delinquent accounts. A recovery management team is dedicated for
dealing those accounts till settlement. Facility call up letter must be served to the
customer and demanding the total outstanding is the first initiative for this stage.

Then legal notice and other legal consequence will be the next course of action for
the recovery. External agencies and legal agency are involved at this stage.
Tremendous pressure will be given to the customer as well as to the guarantor for
the settlement through using internal collectors as well as external recovery
agencies.

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

ANNEXURE-01

KYC
Name of the Applicant:
Background (Family/Parents/Educated or Experienced- wise person) Performance of Customer

Excellent
Satisfactory
Average
Low
Job/Business Standing (Job Position & Job History/Nature of business in details- Performance of Customer
trader/producer, major item, annual sales, stock/receivables etc)
Excellent
Satisfactory
Average
Low
Life Style (Marriage record/Children/Travel record/Quality of life/taste of Performance of Customer
car/dress/residence)

Excellent
Satisfactory
Average
Low
Performance of Customer
Loan Behavior & Willingness to Repay(Loan repayment record &
seriousness/commitment to repay proposed loan)
Excellent
Satisfactory
Average
Low
Performance of Customer
Net worth of the Applicant( Cash/Deposit/Shop ownership/Vacant land/Investment in
business etc. i.e. total assets less of liability)
Excellent
Satisfactory
Average
Low
Guarantor's Status (Social standing, willingness & ability to Stand as guarantor-where Performance of Customer
applicable)
Excellent
Satisfactory
Average
Low
Recommendations and Comments:

Waiver sought (If Any):

Source Signature & Sign Head of Branch’s Seal & Sign

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

ANNEXURE-02

Delinquency Management

1ST REMINDER

PRIVATE AND CONFIDENTIAL (FIRST REMINDER)

_____________________________

_____________________________ Date:

Our Reference: RL1 / <Product Type>

Dear Sir/Madam

RE: LOAN ACCOUNT NO._______________________

We are writing to inform you that our records show that we have not yet received the payment for your account. Your loan
account is overdue as follows as of <date>:

Total Pay-Off Amount Overdue Amount (principal plus interest)

BDT BDT

We appreciate that this may be an oversight on your part, but we would like to request immediate payment of the overdue
amount, which includes penal charges accrued at <penalty rate> per annum, to keep your account in good standing.

Penal charges will continue to accrue until the overdue amount is fully settled.

Should you be experiencing difficulties in making payment then please contact our Collections Officers on xxxxx, xxxxxxxxxx
we will assist you (Sun. –Thurs. 10 a.m. to 6 p.m).

If you have already made arrangements to settle the overdue amount please disregard this letter and accept our thanks.

Collections and Monitoring Unit

This is a computer-generated letter for which no signature is required.

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

ANNEXURE-03

Delinquency Management

2ND REMINDER

PRIVATE AND CONFIDENTIAL (SECOND REMINDER)

_____________________________

_____________________________ Date:

Our Reference: RL2 / <Product Type>

Dear Sir/Madam

RE: LOAN ACCOUNT NO._______________________

Further to our previous letter on the above facility we wish to remind you again that your loan account still remains overdue as
follows as of <date>:

Total Outstanding Overdue Amount

BDT BDT

Please effect payment of the overdue amount, which includes penal charges accrued at <penalty rate> per annum, to your
account immediately. It is important that payments are made on time to avoid future penalty charges and costs associated with
any ensuing collections and legal actions.

Penal charges will continue to accrue until the overdue amount is fully settled.

Should you wish to discuss the repayment of your account then please contact our Collections Officers on xxxxxx, xxxxxxx we
will assist you (Sun. –Thurs. 10 a.m. to 6 p.m).

If you have already made arrangements to settle the overdue amount please disregard this letter and accept our thanks.

Collections and Monitoring Unit

This is a computer-generated letter for which no signature is required.

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

ANNEXURE-04

Delinquency Management

SUSPENSION WARNING

PRIVATE AND CONFIDENTIAL (SUSPENSION WARNING)

_____________________________
_____________________________ Date:

Our Reference: ASW1 / <Product Type>

Dear Sir/Madam

A/c number: #
Overdue amount: #

Despite our previous request for payment you have failed to pay the overdue amount to your account. A payment of <amount>
should be made immediately.

If a payment is not received promptly we will suspend your account. Suspension will mean that you will not be able to make any
payments or withdrawals on your account. In addition, failure to make payments on time will result in additional late payment
charges. We hope that you will pay the overdue amount to avoid any further action.

Should you be experiencing difficulties in making the payment then please contact our Collections Officers on xxxx, xxxxxx,
who will assist you (Sun –Thurs 10 a.m. to 6 p.m).

To receive a quicker response in answering your queries please quote your account number stated above. Please disregard
this letter if you have paid the overdue amount or if you have made alternative arrangements with us.

Yours faithfully,

Collections and Monitoring Unit

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

ANNEXURE-05

Delinquency Management

SUSPENSION CONFIRMATION

PRIVATE AND CONFIDENTIAL (SUSPENSION CONFIRMATION)

_____________________________

_____________________________ Date:

Our Reference: ASC1 / <Product Type>

Dear Sir/Madam

A/c number: #01

Overdue amount: <amount>

Despite our previous communications your account remains in arrears and has now been suspended. You must not attempt to
use your card to withdraw cash.

An immediate payment of <amount> needs to be made to bring your account up to date. Failure to make the overdue payment
may result in closure of your facilities and a demand for settlement of the full outstanding (principal plus interest) balances.

Should you be experiencing difficulties in making the payment then please contact our Collections Officers on xxxxxxxx,
xxxxxxxxxx, who will assist you (Sun –Thurs 10 a.m. to 6 p.m.).

To receive a quicker response in answering your queries please quote your account number stated above. Please disregard
this letter if you have paid the overdue amount or if you have made alternative arrangements with us.

Yours faithfully,

Collections Management Unit

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

ANNEXURE-06

Delinquency Management

FINAL REMINDER

PRIVATE AND CONFIDENTIAL (FINAL REMINDER)

_____________________________

_____________________________ Date:

Our Reference: FRL / <Product Type>

Dear Sir/Madam

RE: LOAN ACCOUNT NO._______________________

Despite our reminders, we have not received any payments to update the above-mentioned account, which is still overdue as
follows as of <date>

Total Outstanding Overdue Amount

BDT BDT

You should immediately pay the overdue amount. Please be reminded that additional penal interest and penalty charges
<penalty rate> per annum shall continue to accrue until the overdue amount is fully settled.

You may be unaware of the serious consequences of your failure to settle the overdue amount but please note that the Bank
shall take all steps necessary to best protect the interests of the Bank without further notice to you. This will include demand for
full and immediate repayment of all amounts outstanding due to us. Please be advised that the next letter will be copied to
signatory of Letter of Introduction/referees/ present employer etc.

If you have any questions on this matter, please call us at telephone numbers xxxxxxxxx, xxxxxxx and xxxx we will assist you
(Sun. –Thurs. 10 a.m. to 6 p.m).

If payment has been effected, please ignore this reminder.

Yours faithfully,

Collections and Monitoring Unit

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MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

ANNEXURE-07

Delinquency Management

LETTER OF DEMAND

PRIVATE AND CONFIDENTIAL (LETTER OF DEMAND)

_____________________________

_____________________________ Date:

Our Ref: DL / <Product Type>

Dear Sir/Madam

RE: LOAN A/C NO. _____________________________

We regret to note that despite our written and verbal reminders, your account is still in arrears. The total outstanding amount
stands as follows as of <date>:

Total Outstanding (including interest)

BDT

We hereby make formal demand for full and immediate repayment of all amounts outstanding due to us, including all accrued
interest thereon.

Take notice that unless we receive your full payment by <date>, we will have no alternative but to assign your case to a
collection agent, or commence legal proceedings against you without further reference. In such event, you will be liable for
additional costs incurred in connection with the recovery action.

This is your last opportunity to discuss the matter and it is important that you call us at xxxxx, xxxxxxxx (Sun. –Thurs 10 a.m. to
6 p.m).

If payment has been effected, please ignore this reminder.

Manager

Collections and Monitoring Unit

STRICTLY CONFIDENTIAL Page 31 of 33

MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015
 SCORE CARD FOR CAR LOAN (Proposed)
Name of the Applicant:
Age
Marital Status
Education
No. of dependents (including unemployed
spouse)
Banking with MDB
Employed in / Engaged in
Experience in the present employment /
business / profession
Sub-Total for Personal Data
Gross Salary / Net Profit per month
Salary Account / Business Account
Monthly Total deductions consist of
Margin of Finance
Tenure of Facility
Sub -Total for Financial Data
Age of vehicle at time of financing
STRICTLY CONFIDENTIAL
ANNEXURE-08
Midland Bank Ltd.
Score Card for Car Loan
Dated:
PARAMETER Scores
PERSONAL DATA
Not more than 45 years (2) 45 – 55 years (1) More than 55 years (0)
Married (2) Not married (1) Divorcee / Widower (0)
Graduate & above / Professional (2) HSC Level (1) Below HSC (0)
0 - 4 (2) 4 - 6 (1) More than 6 (0)
Less than 3 months/not banking with
More than 1 years (4) 3-12 months (2)
MDB (0)
Government / Government owned organisations /
Private limited Companies / Self
Universities / Statutory bodies / Public limited Other employments / own business (0)
employed Professionals (5)
companies / NGO(10)
More than 5 years (4) 3 - 5 years (2) Not more than 3 years (0)
FINANCIAL DATA
BDT 25,000 – 60,000 or its equivalent Less than BDT 25,000 or its
More than BDT 60,000 or its equivalent (6)
(3) equivalent (0)
Salary Account is maintained / Business Account Business Account thro' which less than No salary account / No business
thro' which not less than 50% business is routed, is 50% business is routed, is maintained account is maintained with any bank
maintained with any bank (4) with any bank (2) (0)
Not more than 40% of monthly gross salary / 40% - 55% of monthly gross salary / More than 55% of monthly gross
monthly net profit (10) monthly net profit (5) salary / monthly net profit (0)
More than 80% of the purchase price
Not more than 70% of the purchase price (10) 70% - 80% of the purchase price (5)
(0)
Not more than 2 years (8) 2-4 years (4) More than 4 years (0)
SECURITY DATA
New / Not more than 2 year (10) 2 - 4 years (5) More than 4 years (0)
Page 32 of 33
MDB CAR LOAN PPG – VERSION 1.1 – APRIL 2015

Available – landed property for not less than 100%

Collateral of landed property / Cash
of loan amount or cash collateral of not less than --------- Not available so (5)
Collateral
20% of the loan amount or both (10)
Life & Disablement Insurance on the
Available for not less than loan amount (6) Available for less than loan amount (3) Not available (0)
Borrower
Co-borrower exists but no third party Single borrower and no third party
Guarantee Third Party Guarantee is available (10)
guarantee is available (5) guarantee is available (0)
Sub-Total for Security Data
Grand Total

Grading Scales Scores Grade Allotted to the Applicant :

A More than 100
B 81 - 100
C 66 - 80
D 50 - 65 Note: E graded Applicants should not be considered for financing
E Less than 50

STRICTLY CONFIDENTIAL Page 33 of 33