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Profissional Documentos
Cultura Documentos
Lease Finance Term Loan Small and Medium Enterprise (SME) Development Micro Enterprise Development Initiative (MIDI) Housing Loan Consumers Credit Scheme (CCS) Loan against Lien of Securities (LLS) Term Deposit
Counselling with the Client Filling CIB form & sending it to Bangladesh Bank for CIB report of the client Provide the client with prescribed application form Receive application from client with necessary documents Verification of clients given information comparing with the actual scenario by visiting the proprietors and guarantors project Preparation of loan proposal Send the proposal to the Head Office for the approval of IRC (Internal Review Committee) After approval/sanction completing the legal formalities Disbursement of the loan
Disbursement
FINDINGS
Lending Procedure of MFL is very smooth. Trading business is more popular among SME entrepreneurs. The overall achievement of disbursement meets the target set by the Head Office of MFL. Moreover, some scheme like LLS is becoming more popular among the small investors in share market. Since the recovery target was high in the year 2008-09, the recovery position has not been improved in comparison to the year 2007-08. MFL cannot extend its exposure like other NBFI because it has no marketing focus.
Entrepreneurs do not use the loan they acquire in the proposed business and they use it in some other sectors or personal interest.
Reference marketing results unnecessary sanction of Loan. Total approval authority retain by senior management.
RECOMMENDATIONS
MFL small entrepreneurship development schemes needed to be focused by extensive disbursement in this regard. Higher authority should be positive about the disbursement according to the target. More allocation of disbursement fund for MIDI and LLS scheme is needed. Strong recovery team should be developed through proper training and monitoring. MFL should upgrade their marketing & promotional activities and should utilize the skilled employees to compete with a large number of competitors. In case of sanctioning loan, careful measurement and analysis must be taken and must take into consideration how much the borrower can pay and how much he wants. MFL should monitor the clients business carefully whether they are using the loan fruitfully according to their purpose shown at the time of borrowing and should avoid sanctioning unnecessary loans. MFL authority should be flexible in decision making of sanctioning Loan.
There are some problems regarding SME sectors in Bangladesh. It is clear that skill training and education can get a good impact for SME development. it is also important to express that a Business Plan is the key to operate a business to reach the destination. Proper accounting system is important for SME Entrepreneurs. Most of the SME business failed to sustain due to lack of accounting knowledge. A shortage of working capital is also another reason for the failure of business. Due to lack of technical knowledge & working capital they dont produce quality product. In SME section, employee turnover rate is high. So they are losing skill workers for their challenging Job. Most of the SME entrepreneurs are taking unnecessary loan, which is bad impression on business. Marketing Plan is one of the key Plans of a Business. A proper marketing plan can increase revenue. All the problems in this sector cannot be solved within a specified period of time. A long-term view is necessary to solve the problem. MFL is trying to reduce the problem gradually. MFL is offering different training programs and providing necessary advice to its clients. It creates special opportunity to women entrepreneurs. Thus it has a slogan- A Real Friend of Entrepreneurs.
Thank You!