Loan Products

constructed 73 pucca houses (20´×12´) at 73 Sidr (2007) affected houses at village Donagram of Boloibunia Union under Morrelgonj Upazila of Bagerhat District. Each house costs Tk. 1,26,508/- and occupying a space of 240 sq. ft. (20´×12´) walled by 5´´ thick brick with sloped RCC roof. In the same village BNF has repaired 3 damaged mosques with a total cost of Tk. 90,000/-. 

Here goes the report on the Loan Products of ASA:

Serial No DESCRIPTION Primary Loan Special Loan
1 Service charge, Declining method 24% 24%
2 Service charge per Tk. 1000 Tk. 150 Tk. 150
3 Weekly pay-back per Tk. 1000 ... ...
4 Number of weekly installments to complete repayment 45 45
5 Loan insurance premium during every cycle disbursement Tk. 7 per thousand for coverage of member and spouse.nTk. 3 per thousand for coverage of member only Tk. 3 per thousand for coverage of member ONLY
6 Loan insurance payment after borrower's death Outstanding to be Written off Outstanding to be Written off
7 1st repayment starts 14 days after disbursement 14 days and 1 month after disbursement for weekly and monthly installment system respectively
8 Grace period and holidays in each cycle (year) 6 weeks 6 weeks
9 Provision for advance repayment Last 6 installments Last 6 installments for weekly and 1 installment for monthly repayment system
10 1st cycle loan amount Tk. 5,000-99,000 Tk. 1,00,000-10,00,000
11 Amount increase in next cycle ... ...
12 1st loan disbursement 1 week after enrollment 1 week after enrollment

Presently, ASA caters two types of loan, these are: Primary Loan and Special Loan. Primary Loan has a maximum tenure of 12 months with a loan ceiling of BDT 99,000; While Special Loan has a maximum tenure of 30 months and provides with ranging from BDT 1,00,000 to BDT 10,00,000. Both of loan products have flexibility in terms of repayment and require neither any kind of collateral nor group guarantees.

Category Eligible Criteria Initial Maximum Loan SIZE Interest Rate Loan Term Repayment Mode Incremental increase of Loan SIZE
Primary Loan Economically active poor to undertake or strengthen income generating activities (IGAs). BDT 5,000-99,000 or US$ 63-1240 depending on the economic potential of area and client's capacity as well, in special cases initial loan size can be Tk. 5,000 or lower but entrepreneurs and traders can be provided maximum BDT 99,000 or US $1240 at first loan cycle. Maximum 24% declining 4, 6 or 12 months based on nature of IGAs Generally weekly or monthly for all term loan. But repayment can be made in one installment at maturity of 4 or 6 months term loan. BDT 15,000 or US $190 (Maximum) in each loan cycle.
Special Loan Informal or formal small/micro enterprises or entrepreneurs and traders to promote and scale up production, business activity and employment generation. BDT 1,00,000-10,00,000 or US$ 1240-12658 depending on the economic potential of area and client's capacity. Maximum 24% declining 12, 18, 24 or 30 months based on nature of enterprises Weekly or monthly BDT 50,000 - 200,000 (US$ 643 - 2531) depending on the economic potential of area and client's capacity.
MSME Loan Micro, small and medium enterprises are considered as engines of growth and drivers of economic innovation worldwide. For the economy of our country, this sector has been playing a decisive role in creating jobs for the jobless which contributes to poverty alleviation process making it faster and sustainable. Small and Medium enterprises are particularly suitable for the densely populated countries like Bangladesh where SME sector can provide huge employment opportunity with much lower investment. Over the years, ASA adopted various approaches for the development of small and medium enterprises in the country. As a result a good number small borrowers by availing assistance of ASA have successfully graduated into medium entrepreneurs. At the end of 2017, ASA introduced MSME (Micro, Small and Medium Enterprise) Program with aim to specifically foster small and medium entrepreneurs in our country. This program has been designed in an exclusive manner for offering easy and fitting assistances to the people deemed potential for the cause. Until February 2019, a number of 43 ASA MSME Branches were opened in various places considered as growth centers in the country. Furthermore, a plan has been outlined for opening more MSME branches. BDT 3,00,000-20,00,000 or US$ 3583-23888 depending on the economic potential of area and client's capacity. Maximum 22% declining 6,9, 12, 18, 24, 30,36 months based on nature of enterprises Shorterm or monthly BDT 10,0000 - 500,000 (US$ 1194 - 5972) depending on the economic potential of area and client's capacity.