Banking system takes part an important place in a nation’s economy because of its intermediary role, it

ensures apportionment and relocation of resources and keeps up the motivation of economic activities.
It plays a central economic development of a country and from the core at the money market in any
country. In a developing country like Bangladesh the banking system as a whole has an important role
play in the progress of the economic development. The necessity of SME loan activities cannot be
ignored in any ways because of its dependency in the banking sector. It can be considered as the
important part of any bank as it shows the banking operations. It provides the opportunity to growth of
banking profit and also develops its clients needed. So, SME loan plays a significant role at banking
sector. I strongly believe that any business cannot grow in higher position without helping of credit
facilities. In this report I have tried my best to provide almost all of the basic idea of SME financing of
UBL. 1.2 Research Aim The aim of this research is to find out the procedure and profit by using SME loan
of UBL and also find out what type of problem face by customers of UBL at banijya branch. 1.3
Background of the Problem : Loan section is very important for any bank. Although the performance of
SME Loan section of UBL is good, however still some problems and the customers are facing these
problems while taking SME loan service from UBL, Uttara branch. So to find out the actual problems and
to give some suggestions. 1.4 Problem Statement : Performance of the SME facilities that are provided
and the problems faced by the customers at Uttara Bank Limited Banijya Branch. 3 1.5 Objective of the
report: The report emphasizes on two types of objectives which are given below. 1. Broad Objective 2.
Specific Objective 1.5.1 Broad objectives: The main objective of the study is to evaluate the SME loan
activities of Uttara Bank LTD at Banijya Branch. 1.5.2 Specific objectives: The specific objective of this
reports are:  To evaluate the loan appraisal and recovery process of SME loan.  To know the
enterprise selection criteria to provide SME loan.  To know the term and conditions of SME loan.  To
know the financial output from SME loan of UBL. 1.6 Scope of the Report : Uttara Bank Limited, one of
the oldest private commercial banks, a commitment to Quality and excellence in service is the property
of their identity. There is a gap between the theoretical knowledge and practical knowledge. Our
internship program has been launched mainly to bridge the gap.The scope of the study covers the
organizational overview and structure, background, objectives, capital and reserves, basic functions,
investment and performance analysis of the bank .This report is the outcome of the study on SME
Financing of Uttara Bank Limited. The study has covered a curtail idea on UBL, taking proposal of SME
loan, analysing credit and performing activities for sanctioning loan by SME department of UBL. This will
eventually refer that how the bank help customers securing their cash and assets, getting credit facility,
repaying loan amount and bank’s regulatory compliance, lending policy etc. 4 1. 7 Limitations of the
Report: On the way of my study, I have faced the following problems that may be termed as the
limitation or shortcoming of the study. The main limitations encountered in producing this report are:
Time, space and security constraints Some clients feel hesitate to give opinion Authority did not disclose
much information Relevant papers and documents were not available. Not possible to collect data &
information from all the branches The information of Uttara Bank Ltd. was not found in a structured way