Top 10 Best Banks for Business Loans in Bangladesh

If you are a business owner or entrepreneur in Bangladesh, you might be looking for ways to finance your business growth, expansion, or innovation. Whether you need working capital, fixed assets, commercial space, or equipment, there are various options for getting a business loan in Bangladesh. However, choosing the best bank for your business loan can be challenging, as different banks have different criteria, products, terms, and rates.

10 Best Banks for Business Loans in Bangladesh

In this article, we will introduce you to the 10 best banks for business loan in Bangladesh and answer some common questions that you may have.

1. BRAC Bank

BRAC Bank is one of the largest and most accessible banks in Bangladesh, with over 180 branches and 460 ATMs across the country. It offers various types of business loans for small and medium enterprises (SMEs), such as:

• Uttaran Small Business Loan: A term loan for existing businesses that need to expand or diversify their activities. The loan amount ranges from BDT 3 lakh to BDT 50 lakh, with a repayment period of up to 5 years and an interest rate of 9% per annum.
• Prothoma Small Business Loan: A term loan for new businesses that need to start or establish their operations. The loan amount ranges from BDT 2 lakh to BDT 10 lakh, with a repayment period of up to 3 years and an interest rate of 9% per annum.
• Digoon Double Loan: A term loan that provides double the amount of collateral value for businesses that need to purchase fixed assets or working capital. The loan amount ranges from BDT 5 lakh to BDT 1 crore, with a repayment period of up to 4 years and an interest rate of 9% per annum.
• Supplier Finance: A short-term loan for businesses that need to purchase raw materials or inventory from local or foreign suppliers. The loan amount depends on the supplier’s invoice value, with a repayment period of up to 180 days and an interest rate of 7% to 9% per annum.
• Distributor Finance: A short-term loan for businesses that need to distribute goods or services to local or foreign buyers. The loan amount depends on the buyer’s purchase order value, with a repayment period of up to 180 days and an interest rate of 7% to 9% per annum.

To apply for a business loan from BRAC Bank, you need to have a valid trade license, a bank account, a tax identification number (TIN), and a good credit history. You also need to provide your business plan, financial statements, collateral documents, and personal guarantees.

2. Dutch Bangla Bank Limited (DBBL)

Dutch Bangla Bank Limited (DBBL) is one of the leading private commercial banks in Bangladesh, with over 100 branches and 4,000 ATMs across the country. It offers various types of business loans for SMEs, such as:

• SME Term Loan: A term loan for existing businesses that need to purchase fixed assets or working capital. The loan amount ranges from BDT 2 lakh to BDT 1 crore, with a repayment period of up to 5 years and an interest rate of 9% per annum.
• SME Revolving Loan: A revolving loan for existing businesses that need to meet their short-term cash flow needs. The loan amount ranges from BDT 2 lakh to BDT 1 crore, with a repayment period of up to 1 year and an interest rate of 9% per annum.
• SME Women Entrepreneurs Development Loan: A term loan for women entrepreneurs who own at least 51% of their businesses and need to purchase fixed assets or working capital. The loan amount ranges from BDT 2 lakh to BDT 50 lakh, with a repayment period of up to 5 years and an interest rate of 9% per annum.

To apply for a business loan from DBBL, you need to have a valid trade license, a bank account, a tax identification number (TIN), and a good credit history. You also need to provide your business plan, financial statements, collateral documents, and personal guarantees.

3. Islami Bank Bangladesh Limited (IBBL)

Islami Bank Bangladesh Limited (IBBL) is one of the largest and most popular Islamic banks in Bangladesh, with over 350 branches and 13,000 agents across the country. It offers various types of business loans for SMEs, such as:

• Bai-Muajjal: A deferred payment sale contract for businesses that need to purchase goods or services from local or foreign suppliers. The bank pays the supplier on behalf of the borrower and sells the goods or services to the borrower at a marked-up price. The borrower pays the bank in installments within a specified period. The loan amount depends on the supplier’s invoice value, with a repayment period of up to 1 year and a profit rate of 9% to 12% per annum.
• Bai-Salam: An advance payment sale contract for businesses that need to sell goods or services to local or foreign buyers. The bank pays the borrower in advance and purchases the goods or services at a discounted price. The borrower delivers the goods or services to the bank within a specified period. The loan amount depends on the buyer’s purchase order value, with a delivery period of up to 1 year and a profit rate of 9% to 12% per annum.
• Musharaka: A joint venture partnership contract for businesses that need to start or expand their operations. The bank and the borrower contribute capital and share profits and losses according to an agreed ratio. The loan amount ranges from BDT 2 lakh to BDT 1 crore, with a repayment period of up to 5 years and a profit-sharing ratio of 40:60 (bank:borrower).
• Mudaraba: A trust-based partnership contract for businesses that need to start or expand their operations. The bank provides capital and the borrower manages the business. The bank and the borrower share profits according to an agreed ratio and the bank bears all losses. The loan amount ranges from BDT 2 lakh to BDT 1 crore, with a repayment period of up to 5 years and a profit-sharing ratio of 40:60 (bank:borrower).

To apply for a business loan from IBBL, you need to have a valid trade license, a bank account, a tax identification number (TIN), and a good credit history. You also need to provide your business plan, financial statements, collateral documents, and personal guarantees.

4. Sonali Bank

Sonali Bank is the largest and oldest state-owned commercial bank in Bangladesh, with over 1,200 branches and 2,000 ATMs across the country. It offers various types of business loans for SMEs, such as:

• SME Term Loan: A term loan for existing businesses that need to purchase fixed assets or working capital. The loan amount ranges from BDT 50,000 to BDT 50 lakh, with a repayment period of up to 5 years and an interest rate of 9% per annum.
• SME Working Capital Loan: A working capital loan for existing businesses that need to meet their short-term cash flow needs. The loan amount ranges from BDT 50,000 to BDT 50 lakh, with a repayment period of up to 1 year and an interest rate of 9% per annum.
• SME Women Entrepreneurs Development Loan: A term loan for women entrepreneurs who own at least 51% of their businesses and need to purchase fixed assets or working capital. The loan amount ranges from BDT 50,000 to BDT 25 lakh, with a repayment period of up to 5 years and an interest rate of 9% per annum.

To apply for a business loan from Sonali Bank, you need to have a valid trade license, a bank account, a tax identification number (TIN), and a good credit history. You also need to provide your business plan, financial statements, collateral documents, and personal guarantees.

5. HSBC

HSBC is one of the leading international banks in Bangladesh, with over 10 branches and 30 ATMs across the country. It offers various types of business loans for SMEs, such as:

• Business Term Loan: A term loan for existing businesses that need to purchase fixed assets or working capital. The loan amount ranges from USD 10,000 to USD 500,000, with a repayment period of up to 5 years and an interest rate of LIBOR plus margin.
• Business Overdraft: An overdraft facility for existing businesses that need to meet their short-term cash flow needs. The overdraft limit ranges from USD 10,000 to USD 500,000, with a repayment period of up to 1 year and an interest rate of LIBOR plus margin.
• Business Credit Card: A credit card for existing businesses that need to make purchases or payments online or offline. The credit limit ranges from USD 1,000 to USD 50,000, with a repayment period of up to 45 days and an interest rate of LIBOR plus margin.

To apply for a business loan from HSBC, you need to have a valid trade license, a bank account, a tax identification number (TIN), and a good credit history. You also need to provide your business plan, financial statements, collateral documents, and personal guarantees.

6. Janata Bank

Janata Bank is one of the largest state-owned commercial banks in Bangladesh, with over 900 branches and 1,500 ATMs across the country. It offers various types of business loans for SMEs, such as:

• SME Term Loan: A term loan for existing businesses that need to purchase fixed assets or working capital. The loan amount ranges from BDT 50,000 to BDT 1 crore, with a repayment period of up to 5 years and an interest rate of 9% per annum.
• SME Working Capital Loan: A working capital loan for existing businesses that need to meet their short-term cash flow needs. The loan amount ranges from BDT 50,000 to BDT 1 crore, with a repayment period of up to 1 year and an interest rate of 9% per annum.
• SME Women Entrepreneurs Development Loan: A term loan for women entrepreneurs who own at least 51% of their businesses and need to purchase fixed assets or working capital. The loan amount ranges from BDT 50,000 to BDT 25 lakh, with a repayment period of up to 5 years and an interest rate of 9% per annum.

To apply for a business loan from Janata Bank, you need to have a valid trade license, a bank account, a tax identification number (TIN), and a good credit history. You also need to provide your business plan, financial statements, collateral documents, and personal guarantees.

7. Prime Bank

Prime Bank is one of the leading private commercial banks in Bangladesh, with over 150 branches and 250 ATMs across the country. It offers various types of business loans for SMEs, such as:

• SME Term Loan: A term loan for existing businesses that need to purchase fixed assets or working capital. The loan amount ranges from BDT 2 lakh to BDT 1 crore, with a repayment period of up to 5 years and an interest rate of 9% per annum.
• SME Revolving Loan: A revolving loan for existing businesses that need to meet their short-term cash flow needs. The loan amount ranges from BDT 2 lakh to BDT 1 crore, with a repayment period of up to 1 year and an interest rate of 9% per annum.
• SME Women Entrepreneurs Development Loan: A term loan for women entrepreneurs who own at least 51% of their businesses and need to purchase fixed assets or working capital. The loan amount ranges from BDT 2 lakh to BDT 50 lakh, with a repayment period of up to 5 years and an interest rate of 9% per annum.

To apply for a business loan from Prime Bank, you need to have a valid trade license, a bank account, a tax identification number (TIN), and a good credit history. You also need to provide your business plan, financial statements, collateral documents, and personal guarantees.

8. Agrani Bank

Agrani Bank is one of the largest state-owned commercial banks in Bangladesh, with over 900 branches and 1,000 ATMs across the country. It offers various types of business loans for SMEs, such as:

• SME Term Loan: A term loan for existing businesses that need to purchase fixed assets or working capital. The loan amount ranges from BDT 50,000 to BDT 50 lakh, with a repayment period of up to 5 years and an interest rate of 9% per annum.
• SME Working Capital Loan: A working capital loan for existing businesses that need to meet their short-term cash flow needs. The loan amount ranges from BDT 50,000 to BDT 50 lakh, with a repayment period of up to 1 year and an interest rate of 9% per annum.
• SME Women Entrepreneurs Development Loan: A term loan for women entrepreneurs who own at least 51% of their businesses and need to purchase fixed assets or working capital. The loan amount ranges from BDT 50,000 to BDT 25 lakh, with a repayment period of up to 5 years and an interest rate of 9% per annum.

To apply for a business loan from Agrani Bank, you need to have a valid trade license, a bank account, a tax identification number (TIN), and a good credit history. You also need to provide your business plan, financial statements, collateral documents, and personal guarantees.

9. Standard Chartered Bank

Standard Chartered Bank is one of the leading international banks in Bangladesh, with over 20 branches and 40 ATMs across the country. It offers various types of business loans for SMEs, such as:

• Business Term Loan: A term loan for existing businesses that need to purchase fixed assets or working capital. The loan amount ranges from USD 10,000 to USD 1 million, with a repayment period of up to 5 years and an interest rate of LIBOR plus margin.
• Business Overdraft: An overdraft facility for existing businesses that need to meet their short-term cash flow needs. The overdraft limit ranges from USD 10,000 to USD 1 million, with a repayment period of up to 1 year and an interest rate of LIBOR plus margin.
• Business Credit Card: A credit card for existing businesses that need to make purchases or payments online or offline. The credit limit ranges from USD 1,000 to USD 50,000, with a repayment period of up to 45 days and an interest rate of LIBOR plus margin.

To apply for a business loan from Standard Chartered Bank, you need to have a valid trade license, a bank account, a tax identification number (TIN), and a good credit history. You also need to provide your business plan, financial statements, collateral documents, and personal guarantees.

10. City Bank

City Bank is one of the leading private commercial banks in Bangladesh, with over 130 branches and 300 ATMs across the country. It offers various types of business loans for SMEs, such as:

• SME Term Loan: A term loan for existing businesses that need to purchase fixed assets or working capital. The loan amount ranges from BDT 2 lakh to BDT 1 crore, with a repayment period of up to 5 years and an interest rate of 9% per annum.
• SME Revolving Loan: A revolving loan for existing businesses that need to meet their short-term cash flow needs. The loan amount ranges from BDT 2 lakh to BDT 1 crore, with a repayment period of up to 1 year and an interest rate of 9% per annum.
• SME Women Entrepreneurs Development Loan: A term loan for women entrepreneurs who own at least 51% of their businesses and need to purchase fixed assets or working capital. The loan amount ranges from BDT 2 lakh to BDT 50 lakh, with a repayment period of up to 5 years and an interest rate of 9% per annum.

To apply for a business loan from City Bank, you need to have a valid trade license, a bank account, a tax identification number (TIN), and a good credit history. You also need to provide your business plan, financial statements, collateral documents, and personal guarantees.

Questions and Answers

Here are some common questions and answers that you may have about getting a business loan in Bangladesh in 2023.

Q: What are the benefits of getting a business loan in Bangladesh?

A: Getting a business loan in Bangladesh can help you:

• Start or expand your business operations
• Purchase fixed assets or working capital
• Increase your sales revenue and profit margin
• Improve your cash flow and liquidity
• Enhance your competitive advantage and market share

Q: What are the challenges of getting a business loan in Bangladesh?

A: Getting a business loan in Bangladesh can be challenging due to:

• High interest rates and fees
• Strict eligibility and collateral requirements
• Long and complex application and approval process
• Limited availability and accessibility of funds
• High risk of default and debt burden

Q: How can I improve my chances of getting approved for a business loan in Bangladesh?

A: You can improve your chances of getting approved for a business loan in Bangladesh by:

• Having a clear and realistic idea of how much money you need and what you will use it for
• Having a detailed and viable business plan that shows how you will generate revenue and profit from the loan
• Having a good personal and business credit history and score
• Having sufficient personal and business income and assets to repay the loan
• Having adequate personal and business collateral and guarantees to secure the loan
• Choosing the best bank and loan product that suit your business needs and goals

Q: How can I compare different banks and loan products in Bangladesh?

A: You can compare different banks and loan products in Bangladesh by:

• Visiting their websites or branches and reading their brochures or flyers
• Asking their representatives or agents for more information or clarification
• Using online tools or calculators to estimate your loan amount, interest rate, repayment period, and monthly installment
• Reading online reviews or testimonials from other customers or experts

Q: How can I repay my business loan in Bangladesh?

A: You can repay your business loan in Bangladesh by:

• Making regular payments either through bank transfer, check, or direct debit according to the agreed schedule
• Keeping track of your payments and balances and avoiding any late or missed payments
• Monitoring your business performance and cash flow and adjusting your budget and plan accordingly
• Communicating with your
• lender if you face any difficulties or changes in your business situation that may affect your repayment ability
• Seeking help from a financial advisor or a debt counselor if you need it
• Q: What are the consequences of defaulting on a business loan in Bangladesh?
• A: Defaulting on a business loan in Bangladesh can have serious consequences, such as:
• Damaging your personal and business credit history and score
• Losing your personal and business collateral and guarantees
• Facing legal actions and penalties from the lender
• Ruining your personal and business reputation and relationships
• Limiting your future access to credit and funding
• Q: What are the alternatives to getting a business loan in Bangladesh?
• A: If you are unable to get a business loan in Bangladesh, you can consider other alternatives, such as:
• Equity financing: Raising capital from investors, such as venture capitalists or angel investors, who will own a share of your business and have a say in its decisions
• Crowdfunding: Raising capital from the public, such as customers or supporters, who will donate or pre-order your products or services in exchange for rewards or recognition
• Bootstrapping: Relying on your own savings or income, or reducing your costs or expenses, to fund your business operations
• Grants: Applying for funds from the government or other organizations, such as NGOs or foundations, who will support your business for a social or environmental cause.

Conclusion

Getting a business loan in Bangladesh in 2023 can be a viable option for financing your business growth, expansion, or innovation. However, you need to be prepared and prudent in borrowing and repaying money for your business. You need to assess your business needs and eligibility, prepare your loan application and documents, submit your loan application and negotiate the terms, receive your loan funds and repay the loan.

You also need to choose the best bank and loan product for your business needs and goals. In this article, we have introduced you to the 10 best banks for business loan in Bangladesh and answered some common questions that you may have. We hope that this article has been helpful and informative for you. If you have any questions or comments, please feel free to contact us. Thank you for reading.