If you want to get a loan from a bank, you must first know what is the way to get a bank loan? You can easily get a loan if you meet the conditions set by the bank when taking a loan from a bank. So the bank should fulfill the conditions first and then apply for the bank loan. How to get a bank loan? Easy way to get a bank loan
Types and types of bank loans
Banks provide different types of loans for different jobs. Loans can be of many types.
Which depends on your purpose. What kind of loan do you want to take?
You have to fix it first.
How many types of bank loans and what are they?
- Personal loan: The loan that is given for personal needs is the personal loan or personal loan, it is often called a salary loan.
- Business Loan: A loan taken for business needs is called a business loan or business.
- Home loan: A home loan is a loan that is given to build or buy a house
- Auto loan: The loan taken to buy a car is called an auto loan or car loan
- Education Loan or Student Loan: Study Loan.
- Expatriate loan: Loan for going abroad.
- Agricultural Loans: Such loans are provided for the purchase of machinery for the production of agricultural products or for agricultural assistance or for the production of crops, seeds, fertilizers, and medicines.
Types of bank loans:
- Long Term Loans: Long-term loans are loans that are given for a period of more than one year. For example, personal loans, education loans, home loans, business loans, etc.
- Short Term Loans: Short-term loans are loans that are given for a period of less than one year. For example, agricultural loans, expatriate loans, etc.
The way to get a bank loan is very simple if you know what documents or information you need to provide to get a bank loan.
Today we will take a complete look at the whole issue, so first, we need to know how the bank decides to lend-
Conditions for getting a bank loan
1. Business Efficiency / Sustainability
2. Business situation
3. Business experience
4. Your credit history
5. Your character
6. Your security
7. Your personal guarantee
8. Your credit score
9. Government loan guarantee
The other factors that banks consider in lending are-
1. Startup costs
2. Revenue Estimates (Income)
3. Operating cost
4. Debt
5. Equity return
6. Company standards
Checklist of Documents / Documents Required for Receiving SME Loans from Banks / Financial Institutions For the convenience of SME entrepreneurs, a checklist has been prepared by the bank / financial institution for the required documents from the loan applicants. In this case, it needs to be mentioned that the decision to provide a loan is taken by the concerned officials in light of the own policy of the bank / financial institution. We believe that this checklist will help the entrepreneurs interested in taking loans to prepare in this regard. Entrepreneurs can contact the SME Foundation and SME & Special Programs Division of Bangladesh Bank for any advice and assistance regarding this checklist.
What does it take to get a loan from a bank?
- Renewed trade license.
- Current account in the bank in the name of the business organization.
- National Identity Card.
- Drug license (applicable to the drug business).
- BSTI Certificate (in the case of a food manufacturing company).
- DC approval (in case of diesel and acid business).
- Petrobangla Certificate (in case of diesel and octane business).
- Bank report for last 1 to 3 years (Demand of different banks is different).
- Shop/house rental agreement.
- Document of position.
- Tin Certificate.
- VAT certificate (if applicable).
- Electricity bill
- Telephone bill.
- Certificate of latest educational qualification.
- List of employees’ names, titles, and monthly salaries.
- IRC and IRE Certificate (in case of import and export business).
- Stocks and their current prices.
- Value of fixed assets.
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List of debtors.
- List of creditors.
- If there is a debt elsewhere at present, its details.
- In the CIB report of Bangladesh Bank, it is to be noted here that the form of this report is provided to the entrepreneur by the financial institution concerned and if the entrepreneur completes the form properly then the concerned institution completes the formality of collecting the report from Bangladesh Bank.
- Passport size photographs of both the loan applicant and the guarantor. It should be noted here that financial institutions can take more than one guarantor as per their requirement. Many organizations take family members as guarantors in addition to the original guarantor.
- If the guarantor is a trader, his trade license and CIB report.
Statement of sales and profit for the last year of the business.
Certificate of Incorporation and Memorandum of Articles in case of Private Limited Company. - Resolution of the decision to take a loan from the concerned financial institution in the case of a private limited company.
- Limited Company Audited Financial Statements, Trade Accounts, Profit and Loss Accounts, Balance Sheets and
income statements. - List of current customers of the company in case of a limited company.
- In the case of the partnership business, the partnership deed is registered with the Joint Stock Company and notarized by the notary public.
- Resolution of Partners for Borrowing / Opening Accounts.
The above-mentioned documents are required for borrowing in almost all banks and financial institutions. Also, Banks and financial institutions may, if necessary, collect other required documents and information from the loan applicant.
Source: https://www.bb.org.bd/sme/checklist.pdf
Documents required for taking a bank loan
1. Certificate of latest educational qualification.
2. List of employees’ names, titles, and monthly salaries.
3. ERC and IRC certificate (in the case of import and export business).
4. list of stocks and their current prices.
5. List and value of fixed assets.
6. List of debtors.
7. List of creditors.
8. If there is a debt elsewhere at present, its details.
9. The same report of Bangladesh Bank, it should be mentioned here that the form of this report is the financial institution concerned
10. Provides to the entrepreneur and if the entrepreneur fills the form properly then the concerned organization
11. Complete the formalities of collecting reports from Bangladesh Bank.
Documents required for obtaining an SME loan from a bank / financial institution
1. Passport size photographs of both the loan applicant and the guarantor. It should be noted here that financial institutions have more than one according to their needs. You can take a guarantee. Many organizations take family members as guarantors in addition to the original guarantor.
2. If the guarantor is a trader, his trade license and other reports.
3. Statement of sales and profit for the last year of the business.
4. Certificate of Incorporation and Memorandum of Articles in case of Private Limited Company.
5. Resolution of the decision to take a loan from the concerned financial institution in the case of a private limited company.
6. Audit report in case of a limited company
Documents required for obtaining an SME loan (partnership business) from a bank / financial institution
1. Notarized partnership deed by RJSC and notary public in partnership business.
2. Resolution of Partners for Borrowing / Opening Accounts.
The above-mentioned documents are required for borrowing in almost all banks and financial institutions. Banks and financial institutions may also collect other required documents and information from the loan applicant as required.
Here is a clear description of how to get a bank loan or how to get a bank loan. Also at different times, the concerned bank asks for some new rules and regulations from time to time. You can visit the bank’s website once.