Mercantile Bank PLC.

Product & Services
SME

SME Financing

Small and Medium Enterprises (SME) is considered as thrust sector of the economy. SME is the Engine of Growth as this sector churns out 20%-25% of the country’s GDP growth.
In order to promote the SMEs, MBL has following arrays of products befitting the requirements of the diversified segments and sectors of the economy.credit facilities/limits practiced in the Mercantile Bank Limited:

CHAKA (Term Loan)

SAMRIDDHI (Continuous Loan)

MOUSUMI (Short Term Seasonal Loan)

ANANNYA (Women Entrepreneur's Loan)

SANCHALAK (A mix of Term, Time & Continuous Credit)

UNMESH (Foreign Trade Finance)

Designed for foreign trade financing facility(ies) of the entrepreneurs in diversified sectors towards optimum utilization of their inherent entrepreneurship capacity.
Facility Matrix::
- L/C (One off/Revolving) to import permissible goods,
- Term Loan/Hire Purchase/LTR for retirement of shipping documents under L/C
- Time Loan (One off/Revolving) to make payment of customers duty, VAT, Tax etc.
Loan Limit Tk 0.50 lac to Tk 7500.00 lac
Age limit- 21 years to 65 years.
Pricing :
L/C Opening/Acceptance Commission:
- At Sight: 0.15-0.40 paisa per quarter.
- DP/ Usance: 0.40 paisa per quarter and acceptance commission 0.30 paisa per quarter.
Margin:
- One off: 10%-15% (minimum).
- Revolving:: 10%-15% (minimum) with collateral support.
Interest Rate: @ 9.00%p.a
Eligibility Criteria for Relaxations of Facility Limits, Slashing of Interest/Commissions:
- For L/C Limit: Utilization not less than 2 times during the year ended.
- For LTR: Due time adjustment of consecutive LTRs within a year.
- For Term Loan/Hire Purchase: No instance of overdue installments as per repayment schedule during the year under review.
- No pending status of documentation.
Age Limit of the Borrower: Preferably between 21 years to 65 years.
Borrower’s Eligibility:
- Minimum 01 (one) year successful track record of import.
- Minimum 03 months banking relationship with MBL.
Collateral/ Security:
- L/C Margin, Shipping Documents, Acceptance, Hypothecation of Imported Goods, Receivables, Advance Payments, Plant and Machineries.
- Personal guarantee(s) of owner(s).
- Registered mortgage with Irrevocable General Power of Attorney of the property/ possession right purchased.
- Lien on financial assets such as FDR, Scheme Deposit and other en-cashable financial instruments (preferably with MBL).
- Other documents as applicable in compliance with the policy of the Bank.