TERM LOAN : PAGE 01:
LOAN:
House Building Loan: Type of Loan : (i) Residential. (ii) Commercial.
Purposes of the Loan : (i) Construction of residential house. (ii) Completion of under construction house. (iii) Purchase of Flat/Apartment. (iv) Construction of commercial complex for sale of space/shop/flat. (v) Construction of multistoried building/apartment for sale of flats. (vi) Construction of commercial complex for rental purpose.
Area for loan : (i) All City Corporation and Municipal areas of big town. (ii) The areas must be very much important for residential/Commercial/ industrial purpose.
Ownership of land: (i) Applicant must have his/her own land for construction of residential house/Commercial Complex /Apartment. (ii) Developer Company may construct commercial building/apartment for sale by virtue of power attorney of along of land owner.
Size of building : Upto six storied for residential and ten storied for commercial purpose.
Location: (i) Proposed site of the house/project must be well communicated by pucca road of minimum 12(twelve) feet. (ii) Must have electricity, gas, water connection, surage facilities.
Application for the loan : (i) Applicant in to apply on a prescribed application form of the bank with papers and documents as para (14.0). An applicant can apply for only one loan for construction house for residential purpose. (ii) Members of the same family can apply for one loan. (iii) Application for purchasing more than one flat/apartment may be entertained on consideration of financial capacity of the applicant. (iv) Applicant who has outstanding house building loan cannot apply until full adjustment of the same. (v) No minor /bankrupt/insane can apply. (vi) No defaulter/guarantor of a defaults/ can apply. (v) Applicant must have his/her own source of income for equity. (viii) In case of house wife income of husband shall be considered. (ix) No application shall be entertained for second mortgage.
Equity : (i) Fifty percent of the estimated cost excepting value of land/actual purchase price of flat. (ii) May be relaxed in case of a valued client of the bank. (iii) Rental value/sale price shall be determined for considerations of loan.
Period of loan: (i) 12 year including construction period for residential. Construction period shall be maximum six months. (ii) Maximum three years excluding construction period (To be decided by bank’s engineer).
Interest and installment :
(i) As per rate circulated by Head Office from time to time.
(ii) Simple rate of interest for residential.
(iii) Compound rate for commercial
(iv) Installments include principle and interest
(v) Incase of failure of payment of installments for the residential loan compound interest shall be charged on the defaulted amount.
Procedure of releasing installments :
(i) After 50% investment of the estimated cost/purchase price loan installments shall be disbursed phase by phase observing progress of works. (ii) Releasing of installment shall be stopped if any additional work done outside the approved plan.
(iii) Last installment is to be released if bank’s engineer certify that entire work shall be completed by the installment amount.
Repayment procedure :
(i) Repayment shall start after 12 months from the date of drawing the 1st installment of loan for construction of residential house and six months for completion of under construction works/purchasing flat.
(ii) Commercial complex/apartment constructed for sale proportionate amount of loan shall be realised from each sale. At the time of registration/delivery of possession bank’s clearance has to be obtained depositing the specified loan amount. Full amount of loan shall be realised within the schedule period.
(iii) Commercial complex built for rental purpose a tripartite agreement has to be done among the bank, borrower and the owner/developer regarding depositing a specified amount from the salami/monthly rent to the bank directly by the tenant. Entire loan amount has to be adjusted within the schedule time.
Security:
(i) Mortgage of land and building of the project/apartment. (ii) Mortgage of purchased flat/apartment. (iii) Irrigable power of attorney for sale of the mortgaged property by the bank directly without interfere of could in case of default of payment. (iv) Guarantee of husband if loan is sanctioned to wife. (v) Personal Guarantee from all the directors of Developer Company. (vi) Additional collateral securities were necessary.
Papers and documents are to be submitted with the application:
- Original title deed with via deeds of the land
- A, S.A, R.S Khatian duly certified.
- Mutation khatian, D.C.R and upto date rent receipt.
- Non -encumbrance certificate of District Register for 12 years
- Heba/Gift/Original documents lost are discouraged.
- Plot Allotted/Leased by Govt./Housing and settlement /RAJUK/CDA/ KDA/RDA/ Cantonment Board/Housing society:
- Original Allotment letter.
- Possession delivery letter.
- Original Lease deed.
- NOC for Transfer/Mortgage to bank.
- When land purchased from original allotte, original purchase deed with mutation paper.
- Approved plan with approval letter.
- Site plan (If any).
- Location with full address of the project/apartment.
- In Come Tax no (TIN).
- Certificate of annual income from the employer in case of service holder.
- Valuation certificate of land/apartment
- Declaration of assets and liabilities of the application
- Two copies passport size photograph duly attested by gazetted officer /word commissioner/chairman with attestation of specimen signature of the applicant.
- Name and address of developer with their experiences and registration certificate.
- In cause of multistoried commercial complex/apartment, soil test report with a certificate of load bearing and earth quick.
- Cost estimate (Floor wise, item wise as per P.W.D rate)
- All papers relating to purchase of lift, generator, electric sub station, fire fitting equipment and air conditioning.
- Trade Licence, Article of Association, Memorandum, and Balance Sheet etc. of the developers.
- Declaration about Loan facility availed from any other bank/financial institution.
- Legal opinion on the title deeds.
- Resolution of the Board of Directors for the loan (In case of limited company)
- Prospectus/Contract etc. of developer.
Selection of borrower:
Branch Manager is to scrutinize the papers and documents and verify the particulars given by site visit. He must mention in his site visit report boundary of the land/house/building/project/apartment and take photograph of the same.
Obtain confidential report regarding assets and liabilities of the applicant.
Obtain CIB report.
If found Satisfactory he is to prepare the loan proposal on the prescribed form of the bank and forward the same to Head Office with photocopies of all the papers obtained and original papers and documents are to be preserved till receive of Head Office decision.
If the loan is sanctioned by Head Office branch Manager is to take necessary steps as per terms and conditions of sanction letter.
Registration of charges and obtaining securities :
- All charge documents are to be obtained (Duly stamped) from the applicant(s) and other guarantor(s).
- Personal Guarantees of all directors of Developer Company within the time and registration of charges with the Registrar of Joint Stock Company after registration of mortgage deed.
- Before registration he is to issue notice in two daily newspapers mentioning Dag, Khatian, area, Plot no. Land/building to affect that the land with its proposed/under construction building is going to be mortgaged.
- Prepare the mortgage deed by the bank’s approved lawyer.
- In case of own land owner(s) are to execute the sale and mortgage deed.
- In case of power of attorney owner of the land is to execute sale and mortgage deed.
- Special clause is to be given in the deed that bank reserve the right to sell sale the property without inference of the court in default of payment.
- Irrecable power of attorney for sale of property.
- All the directors of the Developer Company must sign the application paper of the loan.
- All directors of the Developer Company are to sign the charge documents.
- A sign Board of Financing by Jamuna Bank Limited is to hang on a visible place of the project/apartment/building.
- A special clause is to be given in mortgage deed that any alteration/addition/extension/reduction/sale/Transfer/Delivery of possession without bank’s consent shall be treated illegal and void.
Preservation of security:
- All papers and documents including mortgage deed are to be kept in safe custody.
- Till receipt of original mortgage deed registration receipt/token duly discharged by the seller is to be preserved and take delivery of deed in time.
Disbursement and Recovery:
- Manager of the Branch is to ensure disbursement of installments as per schedule and ensure supervision and recovery.
- He must follow all procedures described in different paras and seek Head Office decision in case of need.
ADVANCE AGAINST WORK ORDER:
- Very often Banks allow advances to genuine contractors against work orders received from various Departments/Offices. Such advance is allowed in the form of over-draft/loan.
General
2. Before sanctioning and allowing the advance, the consideration following points are to be considered :- for allowing
(i) The proposed borrower has at least a advance moderately operated current account with against work the bank. order.
(ii) The account is not a new ones (iii) The proposed borrower is a genuine contractor having enlistment with the work entrusting department. (iv) There is no doubt in the integrity of the contractor. (v) The prospective borrower possesses the attribute of commitment. (vi) There is no adverse report on the means, standing and respectability of the respective borrower nor he is a defaulter of any bank/financial institution. Papers to be received
3. When all the above tests are satisfied, the banker receives the following papers/documents in connection with sanctioning the advance: –
i) Application from the party requesting for the advance.
ii) Original work order, which shall contain among other things date of issuance of work order, date of start & completion of work.
iii) Certificate from the work entrusting agency regarding progress and position of the work if the work is already in progress.
iv) Pending bills certificate in case of on going work.
v) Valuation Certificate of property in case of the advance being collaterally secured by real estate.
4. The work order is scrutinized in respect of the work order following :-
a) The work order is issued by a reputed/ recognized Office/Department and the same is genuine. It is signed by authorized Official.
b) Estimated amount of the work is clearly mentioned
c) Time of completion of the work is noted in the work order and the same is adequate for its completion.
5. Genuineness of the work order is verified genuineness from the work entrusting agency by the manager.
6. Letter of confirmation from the work entrusting agency shall be obtained to the effect that the Cheques against bills submitted by the contractor, shall be issued in the name of the bank and the party and also that the security money held, shall be paid to the bank, if necessary.
7.Proposal along with copy of work order, financial credit report & all other necessary papers shall be sent to the competent authority for approval.
8. The advance having been sanctioned by the Competent authority shall be disbursed, subject to obtaining the following charge documents and other documents in accordance with the terms of sanction and constitution of the business.
- a) P. Note.
- b) Letter of arrangements
- c) Letter of continuity
- d) irrevocable P.A. to receive and collect the bills executed by the borrower & confirmation to issue cheques in joint name of bank and the party given by the work entrusting Agency.
9. Before disbursement, it shall be ascertained from position of work the department/Office that either :- before disbursement
- a) The work is yet to start or.
- b) It has started but has not been completed and no bill against the work has been paid and if any bill has been paid the remaining pending bill is sufficient to cover the amount of advance and the validity of the work order has not already expired.
- c) There is not hindrance/obstruction whatsoever in smooth execution of the work.
10. a. Close liaison with the work entrusting agency shall be maintained and in case of receipt of any adverse information about the party, position of the work and smooth progress of the work, disbursement shall be stopped.
b) At every stage of disbursement position of bills received and Credited to the account shall be reviewed.
c) If the period of work has expired further disbursement shall be stopped.
d) In case the party approaches for allowing advance despite expiry of the validity period of the work order, letter from the work entrusting agency extending the validity period shall be obtained. Genuineness of the letter to be verified and drawing shall be allowed only after getting the approval of the competent
e) While the instructions contained in the sanction advice shall be adhered to in recovery of the advance, it shall be specially ensured that adjustment of the outstanding is made from the proceeds of the cheques received against the bills submitted by the contractor.
COMFORT ( CONSUMER CREDIT SCHEME) :
Introduction Because of limited income, the middle class and the lower middle class people especially the salaried professionals of our country usually cannot afford to buy essential household durables like refrigerator, television, air conditioner, video cassette recorder/player, furniture etc. after fulfillment of their basic needs. As such they cannot raise their standard of living to their desired level. Precisely, middle class and fixed income group are in continuous race to elevate the standard of their living and quality of life. To materialize their cherished goal of becoming the owners of the desired goods, Jamuna Bank Ltd is offering an attractive opportunity of installment buying through a Consumer Credit Scheme named “Comfort” in the Bank.
Objective 1) As a new product, our Bank shall get wide publicity with proper launching of the product backed by advertisement at regular intervals. 2) Our clients’ base will expand with the introduction of one more product as new customers would join us for availing the facility. 3) Profitability of the Bank will go up and impact of the scheme will be manifold. 4) The scheme shall contribute towards raising standard of living of the people whereby our Bank shall march farther towards meeting its social obligation.
Operational Procedure The prospective customers are required to collect Bank’s specific set of application form at a price of Tk.50.00 and submit the same after duly filled in by the respective person along with a copy of passport size photograph. An authorized officer of the Bank and/or the Agent nominated by the Bank would then physically visit office of the applicant and interview his/her reporting boss and proposed guarantor to make sure that the information provided in the application form are true. Being satisfied with the monthly disposable income commensurate with the position of the person, the Bank may agree to finance the applicant for buying the desired commodity. The customers are to make down payment of 20% and 30% according to the category of goods, of the total cost as down payment to the Bank. Bank shall pay off the price of the goods directly to the seller through payment order within seven days from the date of deposit of margin along with other required papers. The nature of the facilities is on Hire Purchase basis and the person becomes the legal owner of the products upon full repayment of the Bank’s dues. Before taking delivery of the product(s) , customers are required to submit post-dated cheques duly signed and drawn on their SB/CD account maintained with any bank and sign necessary documents relating to Hire Purchase contract. Number of cheques to be submitted to the branch shall be equivalent to the number of installment and the value of each cheque shall be equivalent to the size of each installment including interest.
How to Apply 1) The intending person will have to apply on the prescribed form available in the concerned branch of the Bank. 2) The application form is to be filled in properly with the certificate of Employer concerned. 3) The application form and the related leaflet is to be procured by the applicant from the concerned branch.
Market Aspect Size of the Target market It is estimated that out of the existing population of the capital city alone, around 6.00 lac individuals have a monthly income of Tk. 15,000 plus who are aged between 30 and 50 and forms the target market of Consumer Credit in Dhaka City. Besides, a sizeable number of customers of Chittagong, Sylhet and other cities also shall be prospective customers under this scheme.
Articles covered under the Scheme Articles covered in this scheme will be put in three categories and percentage of down payment are shown against each of the category :
Category – A Down Payment 20% by the borrower
1) Refrigerator/Deep Freeze 2) Television/Musical sets 3) Air conditioner/Geyser (Water heated/Room Heater/Water pump
4) Washing Machine 5) Household goods- Wooden & Steel including Washing Machine, Sewing Machine etc. 6) Kitchen articles such as Oven, Micro-oven etc. 7) IPS
Category – B Down Payment 20% by the borrower
1) Personal Computer/Printer/UPS/Stabilizer/Modem/Scanner
2) Photocopier 3) Cellular Telephone 4) Fax 5) Generator not exceeding 15 KV
Category – C Down Payment 20% by the borrower
1) Surgical equipment or any other professional equipment for doctors. 2) Special chairs and equipment for dentists
3) Any other items for clinic 9acceptable to the bank)
4) Special furniture for Architect, Engineers, Chartered Accountants
Category – D Down Payment 30% by the borrower
1) Motor Cycle
2) Car/Microbus(Applicable for Doctors/Engineers/Chartered Accountants)
Eligibility Of Client Any interested person of the following professions is eligible to get loan under this scheme :
1) Permanent/confirmed service holder of Govt, Semi-Govt, Autonomous organizations, Banks, Insurance Companies, Public Limited Companies, Multinational Companies, NGOs.
2) Employees of Private Limited Companies covered by guarantee of the Employee’s company.
3) Teachers of Universities, Colleges & Schools (Affiliated)
4) Service holders of reputed private organizations acceptable to the Bank whose monthly gross salary is not below Tk. 10,000.00 per month (exempted for JBL employees both permanent and contract basis).
5) Professional persons like Doctors, Engineers, Chartered accountants, and Bankers.
6) All regular Employees of Jamuna Bank Limited.
7) Loan life shall not exceed remaining active service period of the customer
8) Bank in its discretion may extend credit facility to customer not incorporated above.
9) Job Security of a service-holder applicant for such credit should be taken into consideration while processing his/her case for consumer credit. The following group should not be provided Loans :
- Group/Individual having highly transferable job
- Employee of the small enterprise
- Employees having take home pay less than Tk. 10,000.00 per month
MINIMUM AGE : 21 years (not applicable for our Bank employee both permanent and contract)
MAXIMUM AGE : 54 years (not applicable for our Bank employees both permanent and contract) WORK EXPERIENCE : 2 years of continuous service (not applicable to our Bank employees both permanent and contract) MAXIMUM AMOUNT : BDT 5,00,000.00 ( Tk. Five Lac) only MODE OF FACILITY : Hire Purchase MONTHLY INSTALMENT : As per schedule and the monthly installment shall not exceed 50% of the monthly take home salary
Tenor As Per Credit Limit
| Amount of Credit Facility | Tenor applicable for the customers |
| Not exceeding BDT 1,00,000.00 | 12/24 months |
| Not exceeding BDT2,00,000.00 | 12/24/36 months |
| Above BDT 2,00,000.00 upto BDT 5,00,000.00 | 12/24/36/48 months |
Tenor As per Product
| Amount of Credit Facility | Tenor applicable for the customers |
| New Car | 12/24/36/48 months |
| Reconditioned Car | 12/24/36 months |
| Motor Cycle | 12/24 months |
| Other Items | 12/24 months |
Security : The customer shall furnish the following as security/charge documents against bank’s investment under this scheme :
- Usual Charge documents
- Personal guarantee of the client
- Deposit of ICB unit certificate/lien of Pension Deposit Scheme (DPD)/Fixed Deposit/Bangladesh Shanchay Patra(BSP)/Pratirakha Shanchay Patra(PSP) duly discharged and lien marked or Guarantee of a Person/Company /Institution acceptable to the Bank
- Salary Certificate from the Employer
- The sale Receipt shall be in joint name of the Bank and borrower
- An undertaking by the borrower in Bank’s prescribed form to pay monthly installments regularly
- Post dated cheques in the name of the Bank for all installments to be deposited in advance. The cheques are to be drawn on the customer’s SB or CD accounts maintained with any bank other than our Bank.
- Employer’s certificate to the effect that the client is in the permanent service of the organization
- An undertaking from the client to the effect that in case of failure to pay regular installments, the amount is to be deducted from his/her salary at source for adjustment of dues to the Bank. An authority shall be given by the client to his/her employer to this effect.
- In respect of employees of a private limited company, the guarantee of the employer is to be obtained.
Special Clause for car/vehicle
1) The customer shall sign a blank transfer deed 2) The customer shall give undertaking that the car shall not be driven without having valid driving licence & other valid documents. 3) The customer shall give undertaking that the car will remain in his/her possession during the currency of the credit and he/she will bear all responsibilities for the car during that period. 4) Registration, blue book and comprehensive insurance policy (ies) of vehicles is (are) to be made out in the name of Jamuna Bank Limited. The borrower shall not encumber the vehicle(s) in any way without the prior permission from the Bank. If the customer fails to repay three consecutive installments, the bank reserves the right to bring the vehicle in bank’s control with the help of the competent authority and take appropriate steps in due course. An undertaking shall be obtained from the borrower to the effect that the vehicle shall be sold out by the bank without any reference to the borrower if he/she fails to repay the installments. However, the Bank will issue notices before re-possession of vehicle. The cost of license, registration, insurance etc shall be borne by the customer.
Interest And Other Charges Interest : 15% at simple rate per annum on residual principal Service Charge : 1% on bank’s loan ( not-refundable) Risk fund : 2% on bank’s loan ( not – refundable) Cost of application form: Tk. 50.00 Service Charge, Risk fund and cost of application form shall be realised before disbursement of the loan. In case of employees of Jamuna Bank Ltd., margin shall be 10% irrespective of category of items, interest shall be 15% per annum while Risk Fund and Service Charge shall be waived. A letter of lien to be obtained from the employees for realization of outstanding dues from their Provident fund in case of death or resignation or termination from their service of the Bank.
Other Information to be furnished by the customer
- Residence/Office telephone/personal Mobile Phone
- Other income likes house rent income spouse’s salary etc.
Branches from where such loan will be disbursed From all branches of Dhaka city, Chittagong, Sylhet and other districts as and when opened
Delegated Business power :
a) Until further instruction all proposals for credit under the Scheme shall be approved by Head Office. The Branches shall send their proposal to Head Office in the usual manner and as per terms and conditions laid down in the Scheme.
b) The managing Director has been delegated with the business discretionary power to sanction credit under the Scheme upto Tk. 1.00 lac per borrower.
Mode of Disbursement Bank’s sanctioned amount shall be disbursed through Payment Order/bank Draft directly to the supplier of item(s) as mentioned in the quotation/indent submitted and accepted for the purpose on completion of the following requirements.
- Quotations shall be independently verified as regards price competitiveness and quality
- Deposit of the equity money and Bank’s charges
- Completion of documentation and all other formalities
- Obtaining of securities/collateral as per sanction advice
Mode Of Repayment
The financial facility is to be adjusted by monthly installment. Repayment will start from the month following the month of disbursement. The payment of each installment will have to be made within the I0111 day of each month. Post-dated cheques on the customer’s SB or CD account maintained with any schedule bank other than our bank’ are to he deposited with the Bank. which will be applied for realisation of the installment. In case of dishonor of cheque. Jamuna Bank Limited will lake appropriate legal action to realize its dues.
Monthly Repayment Schedule
| Loan amount | Loan Tenure | |||
| 12 Months | 24 Months | 36 Months | 48 Months | |
| 20000 | 1806 | 970 | – | – |
| 30000 | 2708 | 1455 | – | – |
| 40000 | 3611 | 1940 | – | – |
| 50000 | 4513 | 2425 | – | – |
| 100000 | 9026 | 4849 | – | – |
| 150000 | 13539 | 7273 | 5200 | – |
| 200000 | 18052 | 9698 | 6934 | – |
| 250000 | 22565 | 12122 | 8667 | 6958 |
| 300000 | 27078 | 14546 | 10400 | 8350 |
| 350000 | 31591 | 16971 | 12133 | 9741 |
| 400000 | 36104 | 19395 | 13867 | 11133 |
| 450000 | 40617 | 21819 | 15600 | 12524 |
| 500000 | 45130 | 24244 | 17333 | 13916 |
Transfer of Ownership After adjustment of all the outstanding banks dues the ownership of the item(s) will be transferred in the name of the concerned borrower/Loanee.
Covenants 1) Bank Shall not be responsible for purchase for purchase of any defective item or if the item becomes partly or fully out of order after purchase. The customer must repay bank’s dues as per repayment schedule 2) Bank reserves the right to add alter change the terms and conditions under this scheme in future and any change shall have to be accepted by the customers concerned 3) The client shall remain in sole control and custody of the item(s) supplied to him/her and shall not let out lend or transfer the possession or rights therein in any manner to a 3rd party before adjustment of Bank’s dues. 4) The client shall keep the item(s) to him available for inspection by any authorized representative of the bank as and when requested. 5) The client must keep the Bank informed about any change in his/her official and residential address. Initially, the Managing Director shall approve the loans under this scheme after he is fully satisfied about the credit worthiness of the borrower within the Business Power delegated to him in this respect. For calculation of installment and handling of the scheme, a software module will be installed at designated branches so that .10 manual operation is required. Since the success of the Scheme entirely depends on selection of borrowers and follow-up for recover, Branch Managers must be extremely cautious in the selection of borrowers and post -disbursement follow- up for recovery of the loan. All Branch In- Charges are advised to follow the guidelines of the scheme meticulously and forward proposal to Head Office after exercising due prudence in selecting customers and evaluating their credit worthiness.
PERSONAL LOAN FOR WOMEN
The salient features of the scheme are as follows:
| Sl. | Name of the Scheme | Personal Loan for Women |
| 01. | Target Market |
|
| 02. | Purpose(s) | A personal loan scheme to Women for purchasing/procuring:
|
| 03. | Age Group |
|
| 04. | Minimum Service(in case of working women) | 1 year |
| 05. | Minimum Income |
—–Permanent/confirmed service holder of Govt. semi-govt., autonomous organizations, banks, insurance companies, public limited companies, multinational companies, NGOs ——Professional persons like doctors, engineers, chartered accountant . |
| 06. | Minimum Loan Size | Tk. 25,000.00 (Taka Twenty Five Thousand only) |
| 07. | Maximum Loan Size | Tk. 300,000.00 (Taka Three Lac only) |
| 08. | Margin | Nil |
| 09. | Loan Term | From 12 months to 36 months |
| 10. | Disbursement | · Payment shall be made directly by the Bank to the vendor or to the customer, as may be determined by the bank, depending upon the purpose of the loan. |
| 11. | Security | · Two Personal Guarantees with attested photograph acceptable to the Bank (in addition to the guarantee of the Loanee). · Personal guarantee of spouse (In case of house wife) · In certain cases the Bank may take hypothecation of the purchased assets/consumer items. · Demand Promissory Note, letter of continuation & other Documents as per Scheme. · Four undated Cheques each covering three monthly installments for twelve months loan period. Additional one or two cheques covering the rest installments of the period beyond 12 months. |
| 12. | Debt- Burden Ratio | Monthly loan installment cannot exceed 40% of customer’s take home salary. |
| 13. | Proof of Income | By submitting the following: · Bank statement for last 6 months · Salary Statements duly certified by the employer · House rent agreement in case of direct income from other source |
| 14. | Rate of Interest | The rate of interest is 18% pa. However, the customer will be informed the monthly /quarterly installment against the loan but not the rate of interest. |
| 15. | Repayment Schedule: Allows to repay the loan in monthly installment. | |
(Figure in Taka)
| Amount of Loan | 12 Months | 24 Months | 36 Months |
| 25,000 | 2,292 | 1,248 | – |
| 50,000 | 4,584 | 2,496 | – |
| 75,000 | 6,876 | 3,744 | 2,711 |
| 100,000 | 9,168 | 4,992 | 3,615 |
| 150,000 | 13,752 | 7,489 | 5,423 |
| 200,000 | 18,336 | 9,985 | 7,230 |
| 250,000 | 22,920 | 12,481 | 9,038 |
| 300,000 | 27,504 | 14,977 | 10,846 |
| 17 | Customer selection criteria: Customers selection must be done properly and carefully. Among other factors the following information must be checked : —–Background/Nature of business —– Track record/job history —– Social reputation —– Reliability —– Asset backup |
| 18 | Documents required: · Declaration from customer regarding liability with other Banks & Financial Institutions. · Declaration from customer regarding loan default status, if any. · Documentation as per usual Bank practice. · Duly filled application form with signed debit authority to deposit account. |
| 19 | Other important requirements: · Customers may visit any of the Branches and discuss with Manager/Customer Services Desk. · Customer shall have to open a Savings/Current A/C with any of the JBL Branches unless already maintain an A/C relationship. Repayment has been made simple which can be automatically debited from the A/C. Customers need to maintain / deposit money to meet installment payments. · Prepayment of Loan is allowed with no Penalty fees. However, no Partial payment shall be allowed. · Full identification of the Account introducer shall be maintained. · Failure to make three consecutive installments will result in immediate follow up action including contacting the guarantors and serving notices · This is an unsecured personal loan scheme. No fixed deposit or savings certificates are required as security to the Bank. But constant monitoring must be carried out by the branch. · In case of hypothecation on the consumer item competitive market price shall be checked. |
| 20 | Approval levels: · Branch credit committee upto Tk.1.00 lac. · Managing Director with recommendation of Head Office credit committee above Tk. 1.00 lac |
This is a supervisory Loan scheme and the branch requires constant monitoring. A monthly – consolidated statement of sanction cum disbursement showing outstanding position shall be sent to the Credit Division, Head Office for record and follow-up. 2.4(E) Lease Finance :
| Lease Financing | Leasing is a contractual arrangement that allows one party (the lessee) to use an asset owned by the Lessor (in this case our bank) in exchange for specified periodic payments. The two major parties involved in leasing are Lessor and Lessee. Lessor is the owner of the asset that are being leased .The lessee is the receiver of the services of the assets under a lease contract. Financial Lease, which is an alternative to bank loan for financing of equipment or vehicle is adopted by our Bank. Here the lessor buys the equipment chosen by the lessee, it is used by the lessee for a significant period of its economic life. Financial lease are often called full-payout leases because the lease payments during the lease terms usually amortize the lessor’s total purchase cost. The lessee bears the risk of obsolescence and the cost of maintaining and the insuring of asset. Typically the lessee has the right to buy the asset at the end of the lease contract for a nominal fee, called ‘Transfer Price’. | |||||||||||||||||||||
| Sectors of Financing | 1. Vehicles like Luxury Bus, Mini Bus, Taxi Cabs, Cars, Pick-up, CNG three wheeler etc. 2. Factory equipment. 3. Medical equipment. 4. Machinery for Agro Based Industry 5. Construction Equipment. 6. Office Equipment in special cases 7. Generators, Lift & Elevators for commercial place. 8. Sea or River Transport. 9. Computer for IT Education Centre. * Note: No consumable goods will be financed Under Lease Finance. | |||||||||||||||||||||
| Procurement And Installation of Lease Equipment | 1. JBL will place firm purchase order(s) directly to the manufacturer/supplier on the basis of terms and conditions embodied in the Lease Agreement between the Client and the supplier, and the client will deposit his own Contribution/Down Payment, Lease Deposit, Charges and Risk Fund. The equipment is to be delivered to the selected location of the client. JBL will make full payment after confirmation of the acceptance of the equipment by the lessee (client). 2. In case of imported equipment, JBL will open a Letter of Credit (L/C) in the name of Jamuna Bank Limited on A/C of the customer . The customs clearance and inland transportation of the equipment to the respective location shall be handled by the ‘Lessee’ (Client). All incidental costs in this regard shall be included in the acquisition cost of the equipment. | |||||||||||||||||||||
| Selected Branch | Local Office i.e Dilkusha Branch, Mohakhali Branch, Sonargoan Road Branch, Moulvi Bazar Branch, Agrabad Branch and Sylhet Branch are initially selected for Lease Financing. | |||||||||||||||||||||
| Lease period |
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Eligibility
| The facility under Lease Finance of JBL is available only to those existing industrial concerns, Business houses or group of companies: (a) Which have 3 years proven track record. (b) Which are incorporated as private limited company or public limited company, (However Proprietorship and Partnership firms having 5(five) years proven track record may be financed.) (c) Which have a satisfactory track record vis-à-vis operating results, financial position and credit worthiness. | |||||||||||||||||||||
Lease-Equity Ratio | 70:30 (maximum). However, Down Payment by the customer may vary from customer to customer depending on nature of business, cash flow, ability to repay, rental, collaterals etc. | |||||||||||||||||||||
| Application and Sanction procedure | 01. A potential customer interested to avail Lease Finance from our bank will apply in standard Application Form designed by the bank along with a brief write-up on the proposal/equipment and expected returns/benefit for the use of such equipment or automobile as the case may be. Three competitive quotations of the lease item shall have to be submitted. 02. After receiving the application from the customers, it will be included in the register with a control number. Then the project/proposal would be verified and analyzed. After verification and analysis the proposal will be sent to the Lease Finance Wing of the Head Office with the comment and recommendation of the branch manager. The proposal will be analyzed by the Head Office in respect of proven track record of the directors in the related and unrelated business, net worth of the directors, credit worthiness, credit report, market aspect, technical aspect, financial aspect of the project proposal. | |||||||||||||||||||||
| Papers and document required with the application | The applicant will submit the papers and documents as mentioned in the Checklist enclosed with the Circular. Branch will make all kind of due diligence and obtain all necessary papers and documents from the customer. | |||||||||||||||||||||
| Charges collectable from the Lessee |
(Minimum Tk. 3,000.00 and Maximum Tk.10,000.00 in case of acquisition of Machinery and Equipments) (In case of Automobile, a Service Charge of Tk.500.00 is payable when the Acquisition Cost is below Tk.10.00 lac and an amount of Tk.1,000.00 is payable when the Acquisition Cost is Tk.10.00 lac and above)
(Non refundable and compulsory) 4. Project Examination Fee : @ 0.15% on the sanctioned amount In the case of machinery/equipment: Maximum Tk. 10,000.00 Minimum Tk. 3000.00 In case of Vehicle : Tk. 500.00(for Acquisition Cost below Tk. 10.00 lac) Tk.. 1,000.00 (for Acquisition Cost of Tk. 10.00 lac and above) *Note: VAT and taxes applicable on service charges and commission income shall be Realized from the Lessee. | |||||||||||||||||||||
| Risk Fund: | For Equipment : 1% flat on the amount of lease finance.For Vehicle : 2% flat on the amount of lease finance . | |||||||||||||||||||||
| Lease Agreement | Lease Agreement will be signed between the ‘Lessee’ and JBL (the Lessor) according to the Bank’s agreement schedule after obtaining acceptance of the Sanction Advice from the Lessee. | |||||||||||||||||||||
| Lease Deposit | Normally 3 rentals shall be taken as ‘Lease Deposits’ (non interest bearing) which is refundable at expiry of the lease. The Lease Deposit shall be deposited by the lessee before disbursement of Lease Finance. However, number of “Lease Deposit” may vary from customer to customer. | |||||||||||||||||||||
| Amendment of lease agreement and installment | Before disbursement of Lease Finance, following actions to be taken: 1. An amendment Lease Agreement to be signed between the Lessee and JBL (Lessor), in which the original acquisition cost will be mentioned. 2. The lessee will submit the Certificate of Acceptance of the leased assets.(here the Supplier will issue a Delivery Challan with the equipment/vehicle, which will be signed by the lessee. The delivery Challan duly signed by the lessee will be treated as “Certificate of Acceptance”) 3. Bank will take the Insurance Policy (details mentioned in the Insurance Clause). 4. The lessee will submit the post-dated cheques for the remaining lease rental. | |||||||||||||||||||||
| Security/ Collaterals | Following securities are acceptable: A. Ownership of the Leased Assets. The leased assets will remain in the name of the Bank . B. In addition the following collaterals are acceptable to the Bank: 1. Collateral securities in the form of land & building/Fixed Deposits/Other Cash Collateral/Wage Earners Development Bond having liquidation value covering 100% of the amount of finance. 2. Deposit of listed “A” Category shares, National Savings Certificates, ICB Unit Certificates, assignment of Life Insurance Policies; Bank/Insurance Guarantee will also be acceptable as collateral securities. 3. Creation of charge on the fixed assets of the existing industrial units requiring BMRE. Creation of charge on the existing vehicles will also be acceptable as securities. | |||||||||||||||||||||
| Charge Documents | 1. Demand Promissory Note 2. Letter of Undertaking. 3. Lease Agreement 4. Amendment Lease Agreement 5. Joint Surety | 6. Letter of Guarantee (personal & corporate) 7. Certificate of Lease Execution 8. Letter of Hypothecation 9. Other documents mentioned in sanction letter | ||||||||||||||||||||
| Acquisition Cost | The acquisition cost shall be the purchase price and all other incidental expenses incurred by the Bank, including financial expenses, such as Interest During Construction Period (IDCP), custom duty and other taxes, charges in connection with opening of L/C, insurance premium, freight transportation, storage charges etc. *Note: IDCP will not be included in the Acquisition Cost, if IDCP is serviced in the Construction Period by the customer. | |||||||||||||||||||||
| Basis for Lease Rental | Monthly Lease Rental will be fixed, on the basis of pre-determined IRR(Effective Rate), which should not be less than 18%. To calculate IRR the following factors shall be considered: – Yearly interest rate – Lease period – Lease installment – Risk Fund and other charges | |||||||||||||||||||||
| Base Rate | 16% p.a. | |||||||||||||||||||||
| Monthly Lease Rental | Monthly Lease Rental of Tk.100.00 at different maturity :
“On Advance Payment Basis” means lease rental will be paid by the customer at the beginning of the month and “ On Arrear Payment Basis” means lease rental will be paid by the customer at the end of the month. | |||||||||||||||||||||
| Interest During Grace Period | Interest During Grace Period shall be serviced by the customer during the grace period. | |||||||||||||||||||||
| Payment Date | The payment must be on monthly advance/arrear rental basis. That means each month’s rental shall be paid as advance/arrear basis being 1st rental due on the day of lease execution. There are 3 (three) payment dates in every month i.e. 5,15,25. Lessee’s payment shall be fixed at any of those dates depending on date of execution of lease. For example execution of lease is done between 1 to 10 payment date will be fixed at 5 in each month, if execution of lease is done between 11 to 20 payment date will be fixed at 15 in each month, if execution of lease is done between 21 to 31 payment date will be fixed at 25 in each month. | |||||||||||||||||||||
| Collection Procedure | The lessee will submit post dated cheques and bank will encash those on due dates. | |||||||||||||||||||||
| Overdue Interest | If any Lease Installment is delayed, interest @20% p.a will be charged on that overdue installment. The overdue interest will be calculated on the actual days on 360 days basis. A default charge of 0.50% flat on the total outstanding shall be realized. | |||||||||||||||||||||
| Insurance | The vehicle/Equipment/Lease Asset shall have to be covered by a comprehensive insurance policy throughout the whole lease term at lessee’s own cost in the name of Jamuna Bank Limited. The premium shall be paid by the lessee. | |||||||||||||||||||||
| Registration | The lessee will arrange for registration of the vehicle in the name of Jamuna Bank Limited at his/her own cost and also pay annual taxes and fees payable to the concerned authority. In case of his/her failure, the Bank will do it and realise it from the lessee. | |||||||||||||||||||||
| Transfer of Ownership | On expiry of the lease term the lessee may have an option to purchase the equipment at Transfer Price 0-5% of the acquisition cost. However, transfer price may vary from customer to customer. Besides the above option, the lessee may renew the lease on year-to-year basis @3% per annum of finance amount or return the equipment to the Bank. Note: Option to transfer the equipment in Client’s name is normally preferred by JBL. | |||||||||||||||||||||
| Marketing and Supervision | (1) Marketing and supervision will be done by the branch’s staff. (2) Since it is a supervision-based investment, the branch manager and concerned officers of Lease Finance shall have to maintain communication with the lessee always. (3) For the Head Office’s supervision, monthly statement has to be submitted to the Head Office within the 7 days of next month to which it pertains. | |||||||||||||||||||||
| Excise Duty | Any kind of liveable Excise Duty has to be collected in advance from the Lessee according to the Government rules. | |||||||||||||||||||||
| Other Rules | (1) Delegated Business power for sanctioning Lease Finance lies with Head Office. (2) The lessee is obliged to maintain the vehicle/Equipment in good working order and is solely responsible for any loss or damage as long as it is in his/her possession. Repair and maintenance cost for taking care of normal wear and tear and keeping it in good running condition during the lease period shall be the responsibility of the lessee. (3) Customer will supply adequate and relevant information about the liabilities in his/her own name and in the name of his/her allied concern with banks and financial institutions. (4) If a customer fails to repay consecutive 3(three) installments, branch will take necessary legal action with the consultation of the Head Office. (5) If customer would change his/her commercial & residential address, branch will collect the new address. |
Accounting Procedure of Lease Finance
| During the contract signing | Before the payment to the supplier, the customer will deposit to his/her Current/savings A/c, his/her investment (Lease Margin/Down Payment), Charges, Risk Fund, Advance Deposit and 1st Rental and these will be recorded as follows | |
| Debit -Cash a/c (Lease Margin/Down Payment + Charges + Risk Fund+ Advance deposit + Current rental) | Credit -Party A/C – CD or SB a/c | |
| The deposit slip will be submitted to the Credit Department of the Branch. | ||
| a. After deposit of above amount, bank will place Purchase Order and issue Pay Order (P.O).The transactions will be recorded as follows: | ||
| 2.1. For recording the transaction related to issuance of Pay Order | ||
| Debit -Party A/c- Lease Finance a/c No. 0xx0000010 (Lease Finance amount) Debit -Party A/C-CD or SB a/c (The amount of Lease Margin) | Credit -P.O Issued (Acquisition cost) | |
| 2.2. For recording the transaction related to the charges taken from Lessee | ||
| Debit -Party A/C-CD or SB a/c (Service Charge +Documentation Charge +Project Examination Charge) | Credit -Income A/c –Charges on Lease Finance (Service Charge +Documentation Charge +Project Examination Charge) | |
| 2.3. For recording transaction related to the deposit of Risk Fund | ||
| Debit -Party A/C-CD or SB a/c | Credit -Sundry Deposit A/c-Risk Fund | |
| 2.4. For recording transaction related to the Lease Deposit | ||
| Debit -Party A/C-CD or SB a/c | Credit -Sundry Deposit A/c- Lease Deposit | |
| 2.5.Recording of Lease Rental : | ||
| 2.5.a. For Advance Payment Basis: The Lessee will repay the 1st instalment on the date of execution and then following voucher will be passed | ||
| Debit -Party A/C-CD or SB a/c | Credit -Party A/c-Lease Finance a/c No.0xx0000010 (The Current Rental which includes principal only) | |
OR | ||
| 2.5.b. For Arrear Payment Basis: The Lessee will repay the 1st installment after one month of the execution and then following voucher will be passed | ||
| Debit -Party A/C-CD or SB a/c | Credit – Party A/c-Lease Finance a/c No. 0xx0000010 (Principal Amortization) Credit -Income A/c- Interest on Lease Finance (Interest for one month) | |
| Every subsequent month over the term starting from 2nd month | Recording of Lease Rental for the remaining months starting from the 2nd rental: | |
| Debit -Party A/C- CD/SB A/C (Amount of the lease rental) | Credit -Party A/c-Lease Finance a/c No. 0xx0000010 (Principal amortization) Credit -Income A/c- Interest on lease finance (Interest for one month) | |
| At the end of the Lease period | When the lease deposit is refunded to the Lessee after completion of all rentals | |
| Debit -Sundry Deposit- Lease Deposit | Credit -Party A/C-CD or SB a/c | |
| When the ownership will be transferred to the customer against Transfer Price | ||
| Debit -Party A/c-CD/SB A/c | Credit -Income A/c-Sale of Lease Finance | |
| At the end of the Lease Period Risk Fund will be transferred to the Income Account by passing following voucher | ||
| Debit -Sundry Deposit A/c-Risk Fund | Credit –Income A/c-Risk Fund | |
| Chart of Account | Code Numbers of accounts according to Chart of Account of our Bank to be supplied by the Computer Division of our Bank. | |
In order to commence financial activities under Lease Finance, the printed documents and forms will be sent to the Branches through System and Operation Division quickly. Branches are advised to keep in touch with the System & Operation Division, Head Office for collection of respective documents and printed materials in due course. As Lease Finance is a new financial product, all executives/officers of Branches and Head Office are advised to involve themselves in marketing the product to make it popular and rewarding to the Bank.