Small business loans help entrepreneurs grow their businesses. In Bangladesh, loans are available from banks, non‑bank lenders, as well as government‑supported and SME Foundation programs. Choosing the right option can reduce cost and risk.
Step 1: What is an SME Loan?
An SME loan is a business loan for small and medium enterprises.
- Helps with working capital, stock, machines
- Repayment with interest over time
- Must be repaid on schedule
Step 2: Where to Get SME Loans in Bangladesh
Main Sources
- Commercial banks
- Government‑supported programs
- SME Foundation programs
- Non‑bank financial institutions (NBFIs)
Each has different terms, interest rates, and eligibility.
Step 3: Who Can Apply?
Basic requirements usually include:
- Active business (more than 6 months)
- Trade License
- National ID (NID)
- Business bank account
- Proof of income or business status
Some lenders also ask for:
- TIN
- Bank statement
- Simple business plan
Step 4: Required Documents
Prepare before applying:
- Trade License
- NID copy
- Bank account details
- Bank statement (last 6–12 months)
- Business profile / simple plan
- Sales or income record (optional)
Good documents increase approval chances.
Step 5: Decide Loan Amount and Purpose
Borrow only what you need:
- Money for stock
- Machines
- Expansion
- Working capital
Calculate repayment ability before borrowing.
SME Loan Comparison — Bank, Government & SME Foundation
Disclaimer: Interest rates and terms are indicative as of December 2024 and subject to change by banks/NBFIs. SME Foundation Bangladesh does not endorse any specific lender. Always verify current terms directly with the financial institution before applying.
| Institution | Loan Amount (BDT) | Interest Rate (Approx.) | Collateral | Apply / Info Link |
|---|---|---|---|---|
| BRAC Bank – SME Banking | 50,000 – 5,000,000 | 9% – 14% | Sometimes required | https://www.bracbank.com/en/sme |
| Eastern Bank Ltd (EBL) – SME Loans | 200,000 – 10,000,000 | 8.5% – 13.5% | Sometimes required | https://www.ebl.com.bd/sme/sme-loans |
| Dhaka Bank – i-Solution SME Loan | 100,000 – 7,000,000 | 10% – 15% | Sometimes required | https://dhakabank.com.bd/msme-application/ |
| Dutch-Bangla Bank – SME Banking | 100,000 – 5,000,000 | 10% – 14% | Sometimes required | https://www.dutchbanglabank.com/sme-banking/faq-sme.html |
| Agrani Bank – SME Program (Govt-backed) | 50,000 – 5,000,000 | 8% – 11% | Often required | https://www.agranibank.org/index.php/home/sme_products/SME-Loan-Program |
| Janata Bank – SME Loan (Govt-backed) | 50,000 – 3,000,000 | 8% – 12% | Often required | https://www.jb.com.bd/ |
| SME Foundation Bangladesh – SME Loan Support | 50,000 – 2,000,000 | Subsidised / Low | Sometimes required | https://www.bb.org.bd/en/index.php |
| Special Govt SME Loan | 100,000 – 5,000,000 | Subsidised / Low | May vary | https://smef.gov.bd/ |
Source: Bangladesh Bank SME Circulars, Bank Websites, SME Foundation Records. Last verified: December 2024.
What Makes Government & SMEF Support Different?
Government SME Loans
- Often lower interest or subsidized by Bangladesh Bank
- Has eligibility based on sector or location
- Typically needs complete documentation
- Includes refinance support to banks (banks lend cheaper)
Example: Bangladesh Bank SME Refinance Schemes
Official link (reference):
https://www.bb.org.bd/
SME Foundation Support
SME Foundation provides:
- Low‑cost financing in partnership with banks
- Advisory and business guidance
- Training on loan application & business planning
- Networking with lenders
SMEF support is especially helpful for micro and small entrepreneurs who lack collateral or formal records.
Official SME Foundation website:
https://www.smef.gov.bd/
Step 6: Apply for the Loan
How to apply:
- Visit the chosen bank or SMEF loan counter
- Fill loan application form
- Attach required documents
- Meet the officer and explain your business
- Wait for verification and approval
Be honest and organized when submitting information.
Step 7: What Happens After Approval
After approval:
- Sign loan agreement
- Money is transferred to your business account
- Repayment schedule starts (monthly/quarterly)
Remember:
- Pay on time
- Keep records
- Communicate with the bank if you have problems
Tips to Increase Approval Chance
- Keep proper business records
- Maintain regular bank transactions
- Have clear business plan
- Start with smaller loan first
- Seek guidance from SME Foundation experts
Common Mistakes to Avoid
- Borrowing too much money
- Using loan money for personal use
- Ignoring repayment terms
- Missing installment payments
Final Advice for Entrepreneurs
A loan is a tool for growth, not free money.
- Plan before borrowing
- Use loan wisely
- Repay on time
- Learn from SME Foundation and bank advisors
A well‑used SME loan can help your business grow strong and stable.