What are the documents required for SME loan?

Forming a business by own finance is not always possible enough. Getting a hand from a bank is sometimes essential for smoothly running a business. Moreover, for youth who are trying to build up their career in business, external funding becomes unavoidable.

To promote SMEs, Bangladesh Government under the guidance of Bangladesh Bank provides financial support to the entrepreneur through banks or financial institutions. Today I’m trying to give information about SME (Small & Medium Enterprises) loans in our country. My writing mainly focused on;

  • What is SME?
  • Preferred Sectors of SME?
  • Who Can Get SME funding?
  • Documents required for SME loan and so on.

So, let’s get started.

Definition of SME:

Ministry of Industry and Bangladesh Bank trying to define SME on the following criteria are given below:

Reas Also: What is a CIB report in Bank? Why CIB report is important for Banks or Financial institutions to disburse loans?

Definition of Small Enterprise:

Small Enterprise signifies the firm/business which is not a public limited company and meets the terms:

Serial No.SectorFixed Asset other than Land and Building (Tk.)Employed Manpower (not above)

Definition of Medium Enterprise:

Medium Enterprise are those which are not a public limited company and establishment of the enterprise complies with the following criteria:

Serial No.SectorFixed Asset other than Land and Building (Tk.)Employed Manpower (not above)

Notable Sectors for SME:

Bangladesh Bank identifies some preferred sectors for SME financing. Which includes;

  1. Agriculture and Agricultural goods processing.
  2. Agricultural Activities.
  3. Made of Agricultural tools and their sales.
  4. Made of Fishing Boat.
  5. Embroidery quilt and Weaving.
  6. Preservation of Food Seeds.
  7. Bakery.
  8. Hatchery.
  9. Dry Fish processing.
  10. ICT Activities.
  11. Computer and ICT products.
  12. Entertainment like Making of Film, DVD, Drama etc.
  13. Cyber Café.
  14. Forestry and Furniture making.
  15. Horticulture, Flower cultivation and processing.
  16. Cold storage.
  17. Construction business.
  18. Hospital and Clinic.
  19. Hotel, Motel and Restaurants.
  20. Telecommunication.
  21. Mobile Phone Accessories.
  22. Printing and Packaging.
  23. Reusable Energy like Solar power, Windmill, Electricity from Biogas.
  24. Light Engineering Industry.
  25. Plastic Industry.
  26. Cosmetics and Toiletries.
  27. Handicrafts.
  28. Herbal Products.
  29. Jute and Jute Products.
  30. Stationery Goods.
  31. Frozen Foods.
  32. Leather and Leather goods.
  33. Electronics.
  34. Making Iodized Salt.
  35. Making Chira and Puffed Rice.
  36. Rice Mill.
  37. Wholesale and Retail Shop.
  38. Drug/Medicine Shop.
  39. Phone/Fax.
  40. Local Transportation.
  41. Cinema Hall.
  42. Chatal Business.
  43. Trading.
  44. Old iron (Vangari Business)
  45. Mobile and Mobile Tools Business.
  46. Different Small Business.
  47. Agri tools Business.
  48. Fertilizer Business.
  49. Jute Trading.
  50. Clothing and Shoe Business.
  51. Cement and TMT Bar Business.
  52. Hardware Business.
  53. Crookeries Business.
  54. Grocery and Chaff goods Business.
  55. LP Gas Business.
  56. Ware House Container Business.
  57. Tree plantation Business.
  58. Photography.
  59. Transportation and Communication.
  60. Laboratory.
  61. Jewelry.
  62. Ginning and Belling.
  63. Tailoring.
  64. Saloon and Beauty Parlor.
  65. Community center.
  66. Diagnostic Center.
  67. Artificial Flower Making.
  68. Making Eyeglass frame.
  69. Silk Cocoon and Silk Industry.
  70. Making Toys.
  71. Boutiques.
  72. Ice Mills.
  73. Knowledge Society.
  74. Mushrooms.
  75. Computer Training School.
  76. Light Engineering Workshop.
  77. Making IPS.
  78. Indigenous handicraft and waist loom.
  79. Saw-Mill.
  80. Small Shipping Industry.
  81. Environment friendly transportation.
  82. Dairy and Fish feed.
  83. Brickfield.
  84. Khadi industry.
  85. Agar and Candles making.
  86. Spices grinding.
  87. Biscuit Factory.
  88. Exportable Clay Tiles.
  89. Food processing.
  90. Body Making for Vehicle.
  91. Oil and Daal mill.
  92. GI Pipe Making.
  93. Cement Pillar Making.
  94. Mini Sugar Mill.
  95. Molasses making.
  96. Catechu Making.
  97. Undergarments.
  98. Welding industry.
  99. Bronze, Brass industry.
  100. Call Center.
  101. Digital Color Lab.
  102. Distribution of Electricity through Generator.
  103. Cable Operator.
  104. Small Amusement Park.
  105. Making of Bamboo and Wicker products.
  106. Partex Industry.
  107. Biogas Plant.
  108. Renu Pona Cultivation.
  109. Seed production through Tissue culture.
  110. Stone and Sand Business.
  111. Wood and Steel products business.
  112. Rice and Paddy Business.
  113. Sale of different Khadi products.
  114. Carpet.
  115. Horticulture.
  116. Sweets Making.
  117. Pisciculture.
  118. Battery Making.
  119. Railway Slipper making.
  120. Sanitary goods making.
  121. Lime from oysters.
  122. Tea.
  123. Charcoal Making.
  124. Preservation of Potato Seeds.
  125. Lassa Semai and Chanachur Making.
  126. Potato tissue Culture.
  127.  Solar Plant Business.
  128. Poultry and Dairy Farm.
  129. Fruit processing Industry.
  130. Other necessary sectors

Read Also: How can I get a Personal Loan/Loan Against Salary from a Bank?

Who Can Apply for SME loan?

Any Bangladeshi Nationalists can apply for a loan. Minimum requirements are;

a) Age of the applicant Minimum 20 years and Maximum of 65 years at the end of Loan duration. (Age may vary from bank to bank)

b) Minimum Gross Monthly Income Minimum BDT 30,000 per Month.

c) Minimum 2 years of involvement in the same line of business.

d) Have an Account in the name of the firm for whom the loan is required. (Account age length must be 06 months but if the proprietor has an account more than 01 year with another bank).

Loan Limit:

Loan limit calculated by banks 1,00,000/- to above depending on the customer demand and eligibility. Bank are allowing more than 10,00,000/- (Ten Lac) by mortgaging property of the applicant/borrower. Different banks use several credit metrics to calculate loan limits.

Tenure of the loan:

From 12 months to 60 Months depending on the customer demand and eligibility.

 Documents required for SME loan:

1) One personal guarantee is required along with spouse guarantor.

2) National ID Card/ Passport/Driving license of applicant, Guarantor and Spouse Guarantor. (Passport is not allowed for CIB)

3) Recent color photograph of applicant, Guarantor and Spouse Guarantor.

4) Business card.

5) Copy of TIN related documents. Some banks are allowing up to 5 lacs without TIN certificate.

6) Trade license for the last Three years/MOA for Businessmen.

7) Drug license for the Medicine business.

8) Bank Statement of last 6 months. (If the owner in his/her own name or name of the firm availed loan from other bank loan statements from the beginning to up to date along with loan sanction advice.)

9) Copy of house ownership and in case of rent house, rent agreement from landlord.

10)  Utility bill copy for the proof of address.

11)  For mortgaging property, have to submit all land related documents to the Bank.

12)  BSTI Certificate for the food production industry.

13)  Approval of DC office for Diesel, Acid business.

14)  Certificate from Petro Bangla for Diesel, Octane Business.

15)  VAT certificate. (If applicable)

16)  Employee details.

17)  Stock List.

18)  Payable and Receivable list.

19)  Balance for the last three years.

20)  IRC & IRE certificate for Export-Import Business.

21)  Net worth Details.

22)  Profit Loss Statement of last three years.

23)  Partnership deeds registered from Joint Stock Company and Notary Public for Partnership Business along with resolution from partners.

24)  For private limited Company Certificate of Incorporation and Articles of Association.

Loan Repayment:

Loan repayments are collected from the customer in the form of equal monthly installments (EMI) at a fixed interest rates which are decided by the banks for the period which the customer has chosen. Your monthly installment can be automatically debited from the account in the name of a Proprietary firm especially Current Deposit Account maintained with the respective bank. Some banks collected an equal number of cheques as EMI for monthly repayment.

Interest, Fees and Charges for SME loan:


Interest rate is fixed by the respective bank which is controlled by Bangladesh Bank. The present rate of interest fixed by the BB is not more than 09.00%(Subject to change as per government decision). If one fails to pay monthly EMI he/she has to pay an additional amount along with fixed EMI on a daily basis and is calculated on the basis of 360-day year. Some banks have accrued additional charges in the name of late payment fees.

Fees and Charges are applied by the Bank in the form of;

1)      CIB Inquiry fee.

2)      Loan Application Fee.

3)      Loan Processing Fee.

4)      Contact Point Verification fee.

5)      Charges Document Fee.

6)      Legal Opinion Fee.

7)      Other as banks discretion.

For more details, one can go through the details about the bank’s policies from the respective bank’s official websites. And one can contact the respective bank official for loan details. All banks are offering almost the same feature for a personal loan just which you prefer or suitable for you.


01. What is the full form of SME?

The full form of SME is Small and Medium Enterprises.

02. How do I apply for a SME loan?

Just submit your loan application with fund requirements along with necessary documents of your business to your desired bank. Bank will verify your application and demand for limits for further action. 

03. Who are eligible for SME loan?

Any Bangladeshi Proprietors, self-employed individuals, partnership firms, private limited companies engaged in the business of trading, manufacturing, and services can apply for SME loan. Also;
a) Age of the applicant Minimum 20 years and Maximum of 65 years at the end of Loan duration. (Age may vary from bank to bank)
b) Minimum Gross Monthly Income Minimum BDT 30,000 per Month.
c) Minimum 2 years of involvement in the same line of business.
d) Have an Account in the name of the firm for whom the loan is required. (Account age length must be 06 months but if the proprietor has an account more than 01 years with another bank).

Helpful Links:

  1. https://bb.org.bd/sme/index.php.

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