LOAN PRODUCTS

Here goes the report on the Loan Products of ASA:

 

Serial NoDescriptionPrimary LoanSpecial Loan
1Service charge, Declining method25%25%
2Service charge per Tk. 1000Tk. 150Tk. 150
3Weekly pay-back per Tk. 1000......
4Number of weekly installments to complete repayment4545
5Loan insurance premium during every cycle disbursementTk. 7 per thousand for coverage of member and spouse.nTk. 3 per thousand for coverage of member onlyTk. 3 per thousand for coverage of member only
6Loan insurance payment after borrower's deathOutstanding to be Written offOutstanding to be Written off
71st repayment starts14 days after disbursement14 days and 1 month after disbursement for weekly and monthly installment system respectively
8Grace period and holidays in each cycle (year)6 weeks6 weeks
9Provision for advance repaymentLast 6 installmentsLast 6 installments for weekly and 1 installment for monthly repayment system
101st cycle loan amountTk. 5,000-99,000Tk. 1,00,000-10,00,000
11Amount increase in next cycle......
121st loan disbursement1 week after enrollment1 week after enrollment

 

Presently, ASA caters two types of loan, these are: Primary Loan and Special Loan. Primary Loan has a maximum tenure of 12 months with a loan ceiling of BDT 99,000; While Special Loan has a maximum tenure of 30 months and provides with ranging from BDT 1,00,000 to BDT 10,00,000. Both of loan products have flexibility in terms of repayment and require neither any kind of collateral nor group guarantees.

 

CategoryEligible CriteriaInitial Maximum Loan SizeInterest RateLoan TermRepayment ModeIncremental Increase of Loan Size
Primary LoanEconomically active poor to undertake or strengthen income generating activities (IGAs).BDT 5,000-99,000 or US$ 63-1240 depending on the economic potential of area and client's capacity as well, in special cases initial loan size can be Tk. 5,000 or lower but entrepreneurs and traders can be provided maximum BDT 99,000 or US $1240 at first loan cycle.Maximum 25% declining4, 6 or 12 months based on nature of IGAsGenerally weekly or monthly for all term loan. But repayment can be made in one installment at maturity of 4 or 6 months term loan.BDT 15,000 or US $190 (Maximum) in each loan cycle.
Special LoanInformal or formal small/micro enterprises or entrepreneurs and traders to promote and scale up production, business activity and employment generation.BDT 1,00,000-10,00,000 or US$ 1240-12658 depending on the economic potential of area and client's capacity.Maximum 25% declining12, 18, 24 or 30 months based on nature of enterprisesWeekly or monthlyBDT 50,000 - 200,000 (US$ 643 - 2531) depending on the economic potential of area and client's capacity.