Bangladesh Shilpa Rin Sangstha issues loan for industrial projects (New and BMRE) both in Public and Private sector in local and foreign currency. Besides this, the Sangstha conducts the following activities:

1. Issuing working capital for industrial projects.



2. Provide equity capital in terms of Bridge Loan and Share Underwriting for industrial projects of Public Limited Companies.



3. Provide assurance of loan recovery on behalf of the loanee.



4. Commercial Banking Service including collection of deposits:


• Collection of current, savings and fixed deposits and sending & collection of remittance.



5. Purchase and sell of shares/securities of scheduled companies on behalf of the Sangstha and for the clients as a member of Dhaka Stock Exchange.



6. Conduct project expansion activities along with compilation of various sub-sector base survey report.

Receiving and processing long term project loan application of the Entrepreneur and issuance of loan approval letter on the matters related to investment in industrial sector. In that case:

1. The interested Entrepreneur can collect loan application form and guidelines from Project Approval Dept. with a fee of only Tk. 200.
2. Receiving the complete loan application form along with all necessary documents specified in the guideline and evaluation fee including 1/8 of 1% of the total project expenditure (Maximum Tk. 1.00 Lac and Minimum Tk. 25 thousand).
3. During the submission of three-fold loan application, the applicant/applicants have to submit the following papers/documents:

1. Three copies of complete feasibility report acceptable to the Sangstha if required.
2. Papers/documents regarding personal fixed asset and business institutions declared as Net-worth by the Entrepreneur.
3. Audited balance sheet and Tax Challan receipt for the last three years of the existing business institution of the Entrepreneur/Entrepreneurs.
4. Three separate quotations and concerned documents related to the machineries to be collected for the project.
5. Baynanama/Agreement and other documents related to the project land.
6. Primary lay-out plan of project building and site plan of project land.

4. The submitted loan application will primarily be evaluated whether it is complete or not. If any information/paper is missing with the loan application, the applicant will be informed within 7 (seven) working days. The Entrepreneur will submit the information/documents to the Sangstha within next 15 (fifteen) working days.
5. After receiving the complete loan application form the file will be put up for the permission of loan application processing within 7 (seven) days.
6. After getting the approval of loan application processing, the appraisal team will visit the project land, evaluate the net-worth and collect CIB report from Bangladesh Bank and then the complete evaluation report on the loan proposal will be presented before the Credit Committee.
7. The loan application will be presented before the Approval Authority within 15 (fifteen) days on the basis of the decision of the Credit Committee.
8. The Entrepreneur will be noticed about the decision of the Approval Authority within maximum 7 (seven) days through letter.
9. The Entrepreneur will be noticed about the final decision of the bank with in 90 (ninety) days after submission of complete loan application by the Entrepreneur.

But

• The acceptance of project proposal against the loan application form issued by the Sangstha must not be considered as loan approval;
• The financial assistance will mainly depend on the availability of investable asset and project profitability on the basis of total evaluation.
• Loan proposal is not acceptable for scheduled projects of Reserved Industries.
• Loan application from defaulters will not be acceptable.
• To conceal any information or to provide wrong/ vague information/document will be considered as unacceptable.
• After the approval of loan in favor of the project if any information is found to be wrong/false, the loan approval shall be treated as cancelled in such case.

In case of procurement of machineries to be installed with the loan of Sangstha, the procurement method will be collection of quotations from at least three manufacturers/ distributors/ indenters instead of local/international tender and to implement the procedure the following systems have been introduced

• In case of importable machineries with expenditure (C&F Expenditure) up to 1 (one) crore and machineries of any cost to be collected locally, 3 sets of competitive proforma invoice/indent/quotation collection method will be followed.
• In case of importable machineries with expenditure (C&F Expenditure) up to 1 (one) crore or more; 3 sets of competitive proforma invoice/indent/quotation collection method along with the following steps will be followed:
1. The price coated and qualities of machineries stated in the 3 sets of competitive proforma invoice/indent/quotation should be confirmed through communicating with the suppliers/ manufacturers over Telex or FAX.
2. The machineries should be selected after the collection of prices of machineries from the Chamber of Commerce and Industries of the concerned country of distributors/manufacturers and the information regarding the reputation of manufacturer/supplier over Telex/FAX. or
3. The supplier/manufacturer himself will send the price and quality of machineries as well as the certificate of reputation of supplier/manufacturer from the Chamber of Commerce and Industries of the concerned country of distributors/manufacturers.
• Between the following two options of the Entrepreneurs for providing the Performance Bank Guarantee for the local/importable machineries; one can be opted:
1. Performance Bank Guarantee equivalent to 10% of the price of machineries should be submitted. The guarantee period should be fixed up to 30 days after the erection and installation of machineries along with successful experimental production. Entrepreneur and bank representative both should be certain about the successful experimental production achievement. or
2. Repayment of 90% LC price of the machineries on site basis and the remaining 10% within 30 days of successful experimental production after he erection and installation of machineries. Entrepreneur and bank representative both should be certain about the successful experimental production achievement.

• Take necessary steps for the implementation of approved project.
• Collection of necessary paid-up capital and ensure the optimum use the capital.
• Provide inter departmental communication and other assistance about the bridge loan against the share underwriting of the project company.
• Installation of project machineries at the project site and supervision of technical and mechanical efficiency of the machines.
• Supervision and evaluation of the improvement of project implementation.
• Investigation and processing of application for additional loan during project implementation phase as well as ensure the approval, disbursement and application.
• Investigation and supervision of experimental production of the project.
• Preparation of Final Implementation Report of the project.
• Compilation of loan recovery schedule and disbursement of primary and intermediate loan.

Provide the entrepreneurs of the project (not under a dispute) established with the loan of Sangstha with prior information about loan installment and take effective measures for loan recovery. Identification of problems at the on going phase and removal of the problem if possible. BMRE of project if necessary. Loan Accounts rescheduling and reclassification.

• Loan Recovery from the defaulter projects financed by the Sangstha through legal action.
• Rescheduling/restructuring/liquidation of loan accounts of the projects under litigation through mutual understanding under the legal framework.
•  Publication of Auction/Sale Notice in the daily newspapers, collection of quotations and opening of quotations on stipulated date and time to sell the mortgaged property at an auction to recover of outstanding loan under the rule of law.
• Handover the sold property to the buyer.
• Recovery of loan from the written off projects and monitoring of legal suit are dealt by Law  Dept-2.

The following duties related to documentation are performed by Law 1 dept.

• The entrepreneurs shall apply for documentation of credit with the bank within 15 days from the date of  after the submission of acceptance of conditions of sanction letter.
• The department shall send a letter to the entrepreneur in the form of checklist for the submission of documentation fee, stamp, documents of project land/collateral  properties within 5 days of receiving of application in order to complete the documentation of credit within 3 months from the date of isue of sanction letter. The Sangstha has to do it within 5 days.
•  After the submission of chain of documents and other papers of the project land by the entrepreneur, the Sangstha evaluates all the documents and papers within 5 days. Then the mortgaged land is visited and the papers are sent to the legal advisor for his consent at an earliest opportunity.  Moreover, the draft Memorandum and Article of Association is evaluated by the legal advisor for his consent.
• If the consent of the legal advisor goes in favor of the project then the entrepreneur is requested to publish legal notice in newspaper within 15 days after the investigation of concerned registry/sub-registry and other offices. The entrepreneur has 18 days to do it.
• If all the documents submitted by the entrepreneur are accurate and acceptable to the Sangstha and no objection arises after 15 days of advertisement in the newspapers, then registered mortgage is conducted after receiving the final consent from the legal advisor. Then a letter is sent to the Project Implementation Department to carry out necessary activities after the clearance of Audit Department. The Sangstha has to do it within 7 days.

• Providing underwriting advance/bridge finance/debenture loans to Public Limited Companies;
• Providing under wiring commitment to issuers of stocks and debenture;
• Floating and managing Mutual Funds thereby providing impetus to the capital market;
• Regularly undertakes transaction in the Dhaka Stock Exchange (DSE) as an active member of DSE;
• Providing customer services for purchasing and selling shares/debentures through Brokerage House.

• Procurement of all types of service oriented activities viz. civil works, instruments, office stationeries, printed elements, furniture, car, internal decoration items etc. following `The Public Procurement Regulation, 2003’ (PPR) including the salient features mentioned below:
  
  

  No.	Procurement method	Range
  1.	Open Tender Method	More than Tk. 200,000
  2.	Request for quotation Method For Goods For Service	Tk. 15,001 – Tk. 200,000 Tk. 50,001 – Tk. 200,000
  3.	Restricted Tender Method	Upto Tk. ,,000
  4.	Direct Procurement Method For Goods For Service	Upto Tk. 15,000 Upto Tk. 50,000

  
  
• Collection of rent, electricity bill, WASA bill and other charges from the tenants;
• Payment of electricity bill, WASA bill, gas bill, tax etc. of the building;
• Repair and maintenance of furniture, fixture, electronic apparatus etc.
• New construction or repair maintenance of the existing multistoried building, civil works, sanitary works etc.
• Maintenance of Lift, PABX, computers, fax, telephone set or the building.
• Supervision of security guards, cleaners, fire fighters, lift operators, sub-station operators and drivers;
• Maintenance and supervision of total transport system of BSRS;
• Total maintenance and supervision of existing property;
• Prepare documents relating to tenders, letters, work orders etc.