ebl 1

EASTERN BANK LIMITED [Document subtitle]

3/25/15 LAW & PRACTICES OF

BANKING

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EASTERN BANK LIMITED

AN ASSIGNMENT OF LAW & PRACTICES OF BANKING

COURSE CODE: FIN- 3101

SUBMITTED TO:

SK. ALAMGIR HOSSAIN

LECTURER

DEPARTMENT OF FINANCE

JAGANNATH UNIVERSITY, DHAKA.

SUBMITTED BY:

RASEL AHAMED

REPRESENTATIVE OF GROUP 3

ID NO: B-120203047

SESSION: 2012-2013

DEPARTMENT OF FINANCE

JAGANNATH UNIVERSITY, DHAKA.

DATE OF SUBMISSION: 25 MARCH, 2015

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MEMBERS OF GROUP 3

SL NO. ROLL NAME

1. B-120203034 ASIBUL ISLAM MILU

2. B-120203047 RASEL AHAMED

3. B-120203071 GAZI RAFSAN SHAHAB

4. B-120203137 AFRIN KHAN

5. B-110203091 EHSUN HOQUE

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TABLE OF CONTENTS SL NO. TITLE PAGE N0

1. ACTIVITIES OF EASTERN BANK LIMITED 4 - 7

2. ROLE OF EASTERN BANK LIMITED IN ECONOMIC

DEVELOPMENT OF BANGLADESH

8 - 10

3. DIFFERENT TYPES OF DEPOSIT PRODUCT OFFER BY EBL 11 - 19

4. DIFFERENT TYPES OF LOAN PRODUCT OFFER BY EBL 20 - 26

5. DIFFERENT TYPES OF SME PRODUCT OFFER BY EBL 27-37

6. DIFFERENCE BETWEEN ISLAMIC BANKING SYSTEM AND

TRADITIONAL BANKING SYSTEM

38-39

7. DOCUMENTS REQUIRED TO OPEN AN ACCOUNT IN EBL 40-42

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ACTIVITIES OF EASTERN BANK LIMITED

A. General Functions:

1. Receiving Deposits:

The first and foremost function of Eastern Bank Limited is to receive or collect deposits from

the public in different forms of accounts e.g. current, savings, term deposits. No interest is

charged in the current account, lower rate of interest is charged in the savings account and

comparatively higher interest rates charged in fixed deposits.

2. Accommodation of loans and advances:

Eastern Bank Limited attaches much importance to providing loans and advances at higher

rates than the deposit rates and thus earns profits on it. Working capital is accommodated to

the borrower for expansion and smooth running of business. In the similar manner, EBL

extends financial accommodation for the development of agriculture and industry. Credit

accommodation is provided to the entrepreneurs for reviving sick and old industries as per

Govt. directives.

3. Creation of Loan Deposits:

As a Commercial Bank, EBL not only receives deposits from public and accommodates loans

to public but also creates loan deposits. For example: while disbursing loans as per sanction

stipulation, the amount of loan is credited to the borrower’s account. The borrower may not

withdraw the full amount at a time. The residual amount i.e. balance left in the account

creates loan deposits.

4. Creation of medium of exchange:

Central Bank has got exclusive right to issue notes. On the other hand, Eastern Bank Limited

creates medium of exchange by issuing cheques. Like notes, cheque is transferrable being

popularly used in the banking transactions.

5. Contribution in foreign trade:

Eastern Bank Limited plays a vital role in expediting foreign exchange and foreign trade

business e.g. import, export etc. It contributes greatly in the economy through import finance

and export finance and thus, earns foreign exchange for the country.

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6. Formation of capital:

Eastern Bank Limited extends financial assistance for the formation of capital in the trade,

commerce and industry in the country which expedites its economic development.

7. Corporate Banking:

EBL Corporate Banking provides financial products & services reaching the country’s

growing corporate base. With expertise and dedication, EBL Corporate Banking, aim to

provide the best possible services to our customers. In addition to traditional industries like

RMG, Steel, Pharmaceuticals, Textiles, Ship Breaking & Trading sector; EBL has enhanced

its footprints into Packaging, Food, Power, Construction, Aviation, Glassware, Edible Oil

Refinery, Healthcare, Renewable Energy, Plastic Polymer, Telecommunications, Ocean-

Going Vessel financing, Agri-Business (Poultry, Food Processing), etc.

B. Public Utility Functions:

In modern banking, Eastern Bank Limited executes public utility services:

1. Remittance of Money:

Remittance of money to the public from one place to another is one of the functions of EBL.

Remittance is effected in the form of demand draft, telegraphic transfer etc. through different

branches and correspondents home and abroad.

2. Help in trade and commerce:

Eastern Bank Limited helps expand trade and commerce. In inland and foreign trade

customers are allowed credit accommodation in the form of letter of credit, bill purchased

and discounted etc.

3. Safe custody of valuables:

Eastern Bank Limited introduces ‘locker’ services to the customers for safe custody of

valuables e.g. documents, shares, securities etc.

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4. Help in Foreign Exchange business:

While opening letter of credit, Eastern Bank Limited obtains credit report of the suppliers and

thus help expedite import and export business.

5. Act as a Referee:

EBL acts as a referee for and on behalf of the customers.

6. Act as an Adviser:

Eastern Bank Limited provides valuable advice to the customers on different products,

business growth and development, feasibility of business and industry. They passionately

drive customer delight.

7. Collect utility service bills:

As a social commitment, EBL collects utility service bills e.g. water, electricity, gas,

telephone etc. from the public.

8. Purchase and sale of prize bonds, sanchaya patra, shares etc.

EBL undertakes to purchase and sale of prize bonds, sanchaya patra, shares etc. as a part of

social commitment.

9. Help people travel abroad:

Eastern Bank Limited helps customers in traveling abroad through issuance of traveler’s

cheques, drafts, cash etc. in favor of the customers.

10. Green Banking:

Eastern Bank Limited and its subsidiaries will comply with all laws and regulations related to

environmental protection, green banking other requirements. The bank shall support business

activities that contribute to the protection and improvement of the environment by providing

specialized 'green' products-offered under comparatively more favorable terms and

conditions; specifically in the area of renewable energy, energy saving, organic farming,

biodiversity conservation, green chemistry, green transportation, water and waste

management, environmental restoration, eco-tourism.

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C. Agency Functions:

Besides above stated functions, Eastern Bank Limited acts as a representative of the

customers.

1. Collection and payment:

EBL is engaged in collection and payment of cheque, bill of exchange, promissory notes,

pension, dividends, subscription, insurance premium, interest etc. on behalf of the clients.

2. Purchase and sale of shares and securities:

EBL is entrusted with the responsibility of purchase and sale of shares and securities on

behalf of the customers.

3. Maintenance of secrecy:

Maintenance of secrecy is one of the most important functions of EBL.

4. Act as a trustee:

Eastern Bank Limited acts as a trustee on behalf of the customer. EBL share learning/

knowledge.

5. Economic Development and Welfare activities:

Eastern Bank Limited contributes much for the welfare and economic development of the

country. EBL provided the first “Green Loan” in Bangladesh in Solar Panel manufacturing

plant which will contribute to transform the lives of 1 million people of the most remote and

off-grid areas by lighting up their homes.

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ROLE OF EASTERN BANK LIMITED IN

ECONOMIC DEVELOPMENT OF BANGLADESH

Financial stability is one of the major factors for accelerating the rapid development of

country, and there for commercial banks are playing an important and active role in the

economic development of a country. If the banking system in a country is effective, efficient

and disciplined; we can ensure the economic prosperity which is the base stone to bring a

rapid growth in the various sectors of the economy.

In a developing country like Bangladesh, our economic development depends more on real

factors like the industrial development, modernization of agriculture, organization of internal

trade and expansion of foreign trade, especially exports. Land, Labor and entrepreneurs are

the basic economic resources available with us. However, to make the use of these resources,

a business requires finance to purchase of the land, hire labor, pay for capital goods and pay

for individuals with specialized skills. Here the commercial banks are playing an active role

by accumulating the temporarily idle savings of the general public and make them available

for others for investment.

Detail role of Eastern Bank Limited in economic development of our country is given below:

1. Banks promote Capital Formation

One of the most important problems of a developing economy is that of capital formation.

There is a good deal of difference between hoarding and saving and the people in the

countryside have to be made to realize the difference. Eastern Bank Limited is playing an

active role over here to educate the rural people and thus mobilize their temporarily idle

savings. They are accepting deposits from general public and businesses and these deposits

are made available for others for investment and thereby make use of them for productive

purpose of the country. EBL is therefore, not only the storehouses of countries wealth but

also provide financial resources necessary for economic development.

2. Promotion of Trade and Industry

EBL is playing an active role in development of trade and industrial sector which is resulting

in the rapid economic development. EBL provides capital, technical assistance and other

facilities to businessmen according to their need. They finance the projects to move forward

with modernization to improve the efficiency by means increase in number of production

units, technology, plant and machinery.

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3. Development of Agriculture Sector

In Bangladesh, the agriculture sector and its similar activities were the largest contributor to

the national income. Eastern Bank Limited is helping this most important sector by providing

short, medium and long-term loans for the purchase of seeds and fertilizer, installation of tube

wells, construction of warehouses, purchase of tractor etc. The provision of credit to

agriculture sector has greatly helped in rising agricultural productivity and income of the

people.

4. Development of Foreign Trade

EBL helps the traders of two different countries to undertake business. The use of check,

bank draft, bill of exchange, credit card letter of credit has revolutionized both national and

international trade. Normally the process of a Letter of credit is issued by the importer’s bank

to the exporters to ensure the payment. The banks are also arranging foreign exchange which

boosted the fund transfer between two countries.

5. Balanced development of different region

In a country like Bangladesh where we have an urban-rural divide; EBL is playing an

important role in ensuring balanced development of these different region of our country.

They helped to transfer the surplus fund from developed region to less developed regions.

Banks helped to increase the mobility of capital in various ways like starting their operations

in rural areas, and there for the trades and industries in less developed region are able to get

fund for their development and in turn, it increased the investment, trade and production in

the country.

6. Influencing economic Activity

Eastern Bank Limited is influencing the economic activity of our country through its

influence on,

i. Availability of credit

ii. Rate of interest.

EBL is able to control the money circulation in the market when ever needed. By credit

creation or decreasing/ decreasing the interest rare they can control the money circulation

which directly affects the economic development. A low rate of inters increase the investment

while the high interest rate will attract the savings and investment in the bank. The credit

creation activity can raise the aggregate demand which increase more production in the

economy.

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7. Implementation of Monetary Policy

Central bank of our country in support with the commercial banks including EBL, make

effort for the success and objectives of monetary policy. Central bank of country control and

regulate the volume of credit which helps in bringing the price stability and promote

economic growth within the shortest possible period of time.

8. Monetization of the economy:

EBL by opening branches in the rural and backward areas are reducing the exchange of

goods through barter. The use of money has greatly increased the volume of production of

goods. The non-monetized sector (barter economy) is now being converted into monetized

sector with the help of Eastern Bank Limited.

9. Promoting Export.

In order to promote the export, EBL have established export promotion cell. They provide

information about general trade and economic condition both inside and outside of the

country to its customers. EBL is therefore making positive contribution in the economic

development.

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DIFFERENT TYPES OF DEPOSIT PRODUCT

OFFER BY EBL

1. EBL Current Account

i. EBL Current Account

Features

Unlimited transaction allowed

Online banking facility

Comes with Visa Debit Card & Cheque Book Facility

Eligibility

Minimum Age: 18 years

Citizen of Bangladesh

ii. EBL Current Plus

Features

Unlimited transaction allowed

Pre-approved Credit Card Facility on Demand*

Up to 2% waiver on any EBL Personal Loan Products*

Free Life Insurance of BDT 2 lac on accidental case

50% waiver in Demand Draft/ Pay Order Facility

50% waiver in Locker Services

Free Standing Instructions

Inter-city transaction –Completely Free


Eligibility



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2. EBL Savings Accounts

i. EBL Power Savings

Features

Has the lowest minimum balance requirement for interest

Interest calculated on day end balance-giving you a better chance to

get interest

Has a handsome savings rate- paid monthly to your account

Unlimited cash withdrawal Allowed-no loss of interest for transaction


Best Savings account to earn interest on your small deposit

Eligibility



ii. EBL Classic Savings

Features

Standard Savings Account

No limit on cash withdrawal

Highest interest rate for a Standard savings Account

Minimum balance required for Interest is BDT 15,000

Interest is paid twice a year


Eligibility



iii. EBL Max Saver

Features

Minimum balance required for Interest is BDT 30,000

Interest calculated on day end balance-giving you a better chance to

get interest

Has the highest savings rate in its class- paid monthly to your account

Unlimited cash withdrawal Allowed-no forfeiture of interest for

transaction

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Best for you if you are looking to earn sizeable interest while carrying

out regular transactions

Eligibility



iv. EBL Premium Savings

Features

Enjoy higher interest on your savings-Up to 8.5%!

Interest paid monthly to your account

Interest Starts from BDT 100,000

Interest calculated on Average Balance

Unlimited cash withdrawal Allowed-no loss of interest for transaction

Comes with Visa Platinum Debit Card & Cheque Book Facility

Best for you if you are looking to earn sizeable interest while carrying

out regular transactions

Eligibility



Special Customer Prepositions

Free Accidental Life Insurance Coverage: for up to 5 lac taka

Enhanced ATM withdrawal limit of BDT 3 lac per day!

Visa Platinum Debit Card

Locker fee 50% waived for the first year

50% discount on processing fee of any student file

Special discounts from reputed vendors

v. EBL 50+ Savings

Features

Enjoy higher interest on your savings-Up to 8.0%!


Interest calculated on day end balance and paid monthly to your

account

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transaction


Best for people of 50 year and above looking to earn sizeable interest

while carrying out regular transaction

Eligibility




Free Accidental Life Insurance Coverage

Free Monthly Medical Re imbursement (up to BDT 15000 every

month) for accidental causes

2 Pay Order free in one year

Enhanced ATM withdrawal limit of BDT 3 Lac per day!

Locker fee waived by 50%(1st year)


vi. EBL Smart Women's Savings

Features

Flexible tires to earn high interest on your savings-Up to 8.0%!


Interest calculated on day end balance and paid monthly to your

account


transaction


Best for all female citizen looking to earn high interest with attractive

discounts from special outlets

Eligibility


Female Citizens of Bangladesh


Free Life Insurance Coverage of amount up to 1.50 Lac

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Free Monthly Medical Re imbursement (up to BDT 6,000 every

month) for accidental causes

Locker fee will be waived by 30% (1st year)

EBL Visa Platinum Debit Card

Enhanced ATM withdrawal limit of BDT 3 Lac Per day!

Discount on Mukti (SME) loan processing FEE


3. EBL DPS Products

i. EBL Millionaire Scheme

Features

Tenure and rate

Tenure Rate

3 years 9.5%

5 years 10%

7 years 10%

10 years 10%

Any Bangladeshi Citizen aged 18 years or above can open this account

EBL Confidence can be opened at any multiple of Tk. 500 to Tk.

20,000.00 per month

One customer can open more than one “EBL Confidence”

Automatic realization of monthly installments

Maximum 90% Loan facility

In case of Early encashment, Interest forfeiture will be as below:

Closed Before One Year – No Interest will be provided

Closed After one Year but before three Year- Interest at

prevailing Savings Rate

Closed After 3 Year-Interest at EBL Confidence Rate

Maturity Table

Installment

Amount

Maturity Amount before tax

3 Years 5 Years 7 Years 10 Years

500 20897 39041 60979 103276

1000 41794 78082 121958 206552

2000 83588 156164 243916 413104

10000 417940 780823 1219583 2065520

200000 835880 1516647 2439166 4131040

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Note

For other installments maturity value will follow the above table; i.e. if

monthly installment is BDT 2500 for 5 years, the maturity value will be

39,041x5= 195,205 (as 2500/500=5).

Maturity value is subject to proper and regular payment of the prescribed

monthly installments

ii. EBL Millionaire Scheme

Features

Choose from Six different tenures- from 3 to 15 years

One Person can open More than one “EBL Millionaire Scheme’’

Reduced monthly installments

Automatic realization of monthly installments

Maximum 90% Loan facility against EBL Millionaire Scheme

In case of Early encashment, Interest forfeiture will be as below:

Closed Before One Year – No Interest will be provided

Closed After one Year but before three Year- Interest at prevailing

Savings Rate

Closed After 3 Year-Interest at EBL Millionaire Scheme Rate

The below Maturity Value Table shows the different installment amounts

on available tenures:

Tenor Monthly Installments Maturity Amount

(in BDT) With Initial

Deposit of 50,000

(in BDT)

With Initial

Deposit of

100,000(in BDT)

3 year

21,538 19,905 BDT 1,000,000

(One Million)

5 year

11,203 10,114

7 year

6,868 6,007

10 year

4,034 3,365

12 year

2,855 2,248

15 year

1,737 1,189

Maturity value is subject to proper and regular payment of the prescribed

monthly installments

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* Maturity Amount showed here is subject to income tax and/or other

levies.

Eligibility



4. EBL Fixed Deposit

i. EBL Repeat

FD Amount, Tenure

Minimum opening Amount is BDT Fifty Thousand or its multiple

Tenure is 1 year, 2 year and 3 year

Key Features

Any Bangladeshi Citizen aged 18 years or above are eligible

Attractive Monthly interest

interest credited automatically to EBL Current/Savings Account every

month*

Credit facility against EBL Repeat account is available (maximum

90% of the value).

Auto renewable option available

Premature Encashment*

One year EBL Repeat: For Pre mature encashment after 3 month,

interest is calculated at Prevailing Savings rate

Two/Three year EBL Repeat: For Pre mature encashment after 6

month, interest is calculated at Prevailing Savings rate

* Interest amount is subject to income tax and/or other levies.

* In case of Premature Encashment before the minimum, no interest will

be paid; any additional interest paid will be adjusted from the Principle

amount

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ii. EBL 50+ FD

FD Amount, Tenure

Minimum opening Amount is BDT One Lac or its multiple

Tenure is 1 year, 2 year and 3 year

Key Feature

Any Bangladeshi Citizen aged 50 years or above are eligible

Attractive Monthly interest

interest credited automatically to EBL Current/Savings Account every

month*

Credit facility against EBL 50+ FD account is available (maximum

85% of the value).

Auto renewable option available

Premature Encashment*

One year 50+ FD: For Pre mature encashment after minimum 3 month,

interest is calculated at Prevailing Savings rate.

Two/Three year 50+ FD: For Pre mature encashment after minimum 6

month, interest is calculated at Prevailing Savings rate.

* Interest amount is subject to income tax and/or other levies.

* In case of Premature Encashment before the minimum period, no

interest will be paid; any additional interest paid will be adjusted from the

Principle amount

iii. EBL FD

FD Amount and Tenure

Minimum opening Amount is BDT 50 thousand or its multiple

Tenure is 1 month, 3 month, 6 month, 1 year, 2 year and 3 year

Key Features

Can be opened in any EBL Branches

All EBL FD has auto renewable option with/without interest

Attractive Interest rate

Customer can open more than one EBL FD

EBL FD Account Holders may take Credit facility (Loan or Overdraft)

against EBL FD (maximum 90% of the value).

Premature Closure

If any depositor wants to withdraw the deposit before maturity, the following

rules will apply:

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For pre-mature encashment within three month- no benefit will be

provided

For pre-mature encashment after three month- depositor shall get

Interest Rate @ prevailing Savings rate up to the encashment date

Eligibility



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DIFFERENT TYPES OF LOAN PRODUCT

OFFER BY EBL

1. EBL Jibandhara Loan:

Features:

Personal loan facility for any Consumer Needs

Loan Amount Ranges from BDT 50,000 to BDT 1,000,000 (or 10 times of

Gross monthly Income, whichever is lower)

Repayment tenure of 12 months to 60 months

Competitive interest rate

Automatic realization of Monthly Installments from EBL account

One personal Guarantor needed; spouse can stand as a guarantor

Early Full and partial settlement allowed

Minimal documentations

No security required

No hidden charges

Shortest Loan Processing Time

Interest Rate: 16% pa (floating)

Eligible Customers:

Any credit worthy individuals like:

Salaried executives: Minimum one year experience with 6 months

employment with present employer

Self Employed - Doctors, Architects, Engineers, Chartered Accountant

and Certified Consultant & IT Professionals: Minimum one year

experience

Businessperson : Minimum 2 years of involvement in business

Age:

Minimum : 22 Years

Maximum : 60 years (For Salaried), 65 Years (For Others)

Minimum Gross Monthly Income:

Salaried Executives: Minimum BDT 20,000 per Month

Government Employees: Minimum BDT 15,000 per Month

Professionals/Businessman: Minimum BDT 30,000 per Month

Joint applicant allowed: Combined Gross monthly income should be

minimum BDT 30,000 per month

2. EBL Women's Loan

Features

Loan Amount: Minimum TK. 1,00,000/-, Maximum TK. 10,00,000/-

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Repayment Tenor: 12, 24, 36, 48 & 60 months

Interest Rate: 16.00% p.a (floating)

Other Facility

Discount on EBL locker service charge

Discount on Credit Card Issuance

3. EBL Home Loan

Features

Home Loan for the purpose of

Flat/Apartment Purchase

House construction / Extension / Renovation / Up-gradation/ Face

uplifting / Finishing work

Takeover of existing home loan from any bank / Financial institution

Loan Amount Ranges from BDT 500,000 to BDT 10,000,000 (or 50 times of

Gross Monthly Income, whichever is lower)


No Processing fee for Take over home loans from other Banks/ Financial

Institutions

Repayment tenure of up to 20 years

Automatic realization of Monthly Installments

Early full and partial settlement allowed


Interest Rate: 14% pa

Eligible Customers

Any credit worthy individuals with a minimum of three (3) years’

experience like:

Salaried executives

Self Employed : Doctors, Architects, Engineers, Chartered Accountant

and Certified Consultant & IT Professionals

Businessperson

Landlords

Age:

Minimum: 25 Years

Maximum : 65 years


Salaried Executives: BDT 30,000

Professionals/Self Employed: BDT 40,000

Businessman: BDT 50,000

Joint applicant allowed; Combined Gross monthly income should be

minimum BDT 40,000 per month.

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4. EBL Fast Cash

Features

Revolving credit facility

Credit facility amount ranges from BDT 50,000 to BDT 10 Crore or maximum

90% of the Present Value of FD, whichever is Lower

100% cash secured loan


Interest charged only for the amount you have drawn

Interest charged on quarterly basis

Repayment at any time during the stipulated period

Option of renewal / increase limit/ decrease limit at your request


Eligible Customers

Any individual having an FD or other securities like Wage Earner’s Bond,

ICB unit certificate etc is eligible to apply

5. EBL Auto Loan

Features

Auto Loan for the purchase of brand new and reconditioned car for private use

only

Loan amount ranges from BDT 350,000 to BDT 2,000,000 (or 15 times of

Gross Monthly Income, whichever is lower)




Automatic realization of monthly installment

Spouse is allowed as Joint Applicant

Loan amount includes car value, VAT, and registration cost

Minimal Documentation

one personal guarantee required

Shortest Loan Processing time

Eligible Customers


Salaried executives: Minimum 3 years’ experience with 6 months

employment with present employer

Self Employed like Doctors, Architects, Engineers, Chartered Accountant

and Certified Consultant & IT Professionals: Minimum 2 years’ experience

Businessperson : Minimum 2 years’ experience

Landlords

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6. EBL Fast Loan

Features

Loan Amount ranges from BDT 50,000 to BDT 10 Crore or maximum 90% of

the Present Value of FD, whichever is Lower

100% cash secured loan




Pre-payment option available



No hidden charges


Eligible Customers

Any individual having an FD or other securities like Wage Earner's Bond, ICB unit

certificate etc. is eligible to apply.

7. EBL Executive Loan

Features

Personal loan facility for any Consumer Needs.

Loan Amount Ranges from BDT 50,000 to BDT 1,000,000 or up to 10 times

of Gross Monthly Salary, whichever is lower




Pre-payment option available




No security required

No hidden charges


Eligible Customers

Any Salaried individuals with

One year of experience with minimum 6 months of employment with current

employer

Age : Minimum 22 years, Maximum 60 Years



Government Employees: BDT 15,000

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Joint applicant allowed (Spouse only); Combined Gross monthly income

should be minimum BDT 30,000 per month.

8. EBL Travel Loan

TraveLoan - Secured

Loan amount 90% of the security deposit (EBL FD)

Easy Monthly Installment Repayment - 12 months to 60 months

Loan amount Tk. 50,000 - Tk. 500,000

Processing fee - 1% of the loan amount or Tk. 2,000 whichever is higher

Advance Partial prepayment allowed

Loan disbursement directly to Customer Account

No personal guarantee required

50% processing fee waiver for EBL Dual Currency Credit Cardholder

50% Dual Currency Credit Card Issuance fee waiver for Travel Loan

borrowers

Travel Loan – Unsecured

Easy Monthly Installment Repayment - 12 months to 60 months

Loan amount Tk. 50,000 - Tk. 500,000 or 10 times of gross monthly income,

whichever is lower

Competitive interest rate.

Processing fee - 1% of the loan amount or Tk. 2,000 whichever is higher

Advance/Partial prepayment allowed

50% processing fee waiver for EBL Dual Currency Credit Cardholder

50% Dual Currency Credit Card Issuance fee waiver for Travel Loan

borrowers

Disbursement

Secured

Directly to Customer Account with EBL

Unsecured

Loan less than or equivalent to Tk. 200,000 to Customer Account with

EBL

Loan above Tk. 200,000 - air ticket fee (including co-traveler) to the

travel agency through pay order from EBL; 80% of the remaining loan

amount through TC/cash foreign currency endorsement from EBL and

balance to Customer Account with EBL in cash.

Additional Supporting Documents

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Valid Passport Copy (Mandatory)

Valid Visa of traveling country (for unsecured loan only)

Travel Quotation from travel agent (for unsecured loan only)

9. EBL Parseloan

Features

Personal loan facility for any Consumer Needs.

Loan Amount Ranges from BDT 200,000 to BDT 1,000,000 or 10 times of

Gross Monthly Income, whichever is lower

EMI Based Loan Repayment Facility


Available in Two Versions:

EBL Parseloan 30- where you provide 30% of the applied Loan Amount in

the form of EBL FD; for example for a loan amount of 10 Lac, you need to

provide BDT 3 lac as security.

EBL Parseloan 50- where you provide 50% of the applied Loan Amount in

the form of EBL FD; for example for a loan amount of 10 Lac, you need to

provide BDT 5 lac as security.

Attractive Loan Interest Rates





No hidden charges


Eligible Customers


Salaried Executives: Minimum 2 year experience with 6 months

employment with present employer Self Employed Professionals /

Businessmen: Minimum 2 years’ experience

Age:

Minimum : 22 Years

Maximum : 60 years (For Salaried), 65 Years (For Others)



Self Employed Professionals/Businessman: BDT 40,000

Joint applicant allowed; Combined Gross monthly income should be minimum

BDT 40,000 per month

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10. EBL Education Finance Pack

EduLoan Unsecured - Education Loan without Security Deposit

EMI based loan facility

Loan amount minimum BDT 100,000 to maximum BDT 10,00,000

Loan amount up to 80% of the summation of admission fee, tuition fee,

semester fee, other fees as stated by the educational institutions, living/lodging

expenses and traveling expense. Total expense estimation needs to be

submitted by the applicant with supporting documents.

Processing fee – 1% of the Loan amount

Repayment tenor : 12 – 60 months

Advance / partial pre-payment is allowed

Competitive Interest Rate

Student File services available

EduLoan Secured - Education Loan with Security Deposit

EMI based loan facility

Loan amount is 90% of the security deposit (EBL FD)

Processing fee – 1% of the Loan amount (minimum BDT 2,000 or maximum

BDT 10,000)

Repayment tenor : 12 – 60 months

Advance / partial pre-payment is allowed

Within same day processing


Interest rate: FD+3% or 12% whichever is higher

Student File Services available

Joint applicant possible, provided he/she is a co-applicant of the security.

EduLine – Credit Facility against Security Deposit

Loan amount is 90% of the security deposit

Advance/partial pre-payment is allowed

Interest against utilization only

Within same day processing

Processing fee – 1% of the Loan amount (minimum BDT 2,000 or maximum

BDT 10,000)


Interest rate: FD+3% or 12% whichever is higher

Student File Services available

Joint applicant possible, provided he/she is a co-applicant of the security

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DIFFERENT TYPES OF SME PRODUCT OFFER

BY EBL

A. Small Segment Loan Products

1. EBL Asha:

Features:

Any business purpose loan from Tk.2,00,000 to Tk.10,00,000 (Repeat loan

from Tk.2,00,000 to Tk.15,00,000)

Loan repayable in equal monthly installment

Repayable within 3 to 36 months (Repeat loan repayable within 48 months)

No collateral security required

Eligibility

Any sole proprietorship, partnership or private limited companies having

minimum 1.5 years of successful business operation

Monthly cash flow to support the proposed loan installment

Another 2 personal guarantee

Repayment

Monthly installment

2. EBL Uddog:

Features:

Loan for any legal business purposefromTk.10,00,000 to Tk.1,00,00,000

Without land/building mortgage

Repayable within 60 months

30-50% of the loan amount in the form of fixed deposit

Eligibility

Any successful enterprise minimum 2 years in same or relevant business

Business income to support the proposed loan installment

Necessary documents of business

Bank account in the name of enterprise or the entrepreneurs

Repayment

Monthly installment

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3. EBL Agrim

Features

Loan to meet-up seasonal demand

Loan facility minimum Tk.200,000 – maximum Tk.950,000


Loan tenure 1 month to 6 months

Partial payment and early payment allowed- no additional fee required

Eligibility

Any enterprise with one & half years business experience in same or relevant

field

Business cash flow to support the proposed loan in one shot


Bank account in the name of the enterprise or entrepreneurs

Personal guarantee required

Repayment

Single shot payment at maturity but interest will be realized on monthly basis

4. EBL Mukti

Features:

Credit facility from Tk.2,00,000 to Tk.25,00,000 for women entrepreneurs or

women lead business


Interest Rate is 10% p.a.

Repayable in 6-60 months

Eligibility

Any legitimate business run by women entrepreneurs with at least 1 year in

operation

Business Cash Flow to support repayment

Repayment

Monthly installment

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5. EBL Uddom

Features

Loan for any legal business purpose from Tk.10,00,000 to Tk.1,00,00,000

Without land/building mortgage

Repayable within 48 months

30-50% of the loan amount in the form of fixed deposit

Minimum 50% loan repayable in monthly installment and Overdraft up to FD

amount

Overdraft facility when necessary

Eligibility


Business income to support the proposed loan Installment


Bank account in the name of enterprise or the entrepreneur

Repayment

Easy equal monthly installment

Interest only on withdrawal amount of OD

6. EBL Unnoti

Features

Any legal business purpose bundle loan for SME

Loan amount from Tk.10,00,000 to Tk.3,00,00,000

50% Term Loan and 50% OD facility of total loan limit

Maximum tenor for Term Loan is 60 months and Overdraft is for 12 months*

Collateral security required along with charge on business assets

Flexibility in loan usage, interest would be charged on utilization amount only

Eligibility

Any sole proprietorship, partnership or limited companies having minimum 2

years of successful business operation

Business cash flow must support to the proposed loan amount

Repayment

Term Loan is repayable by Equal Monthly Installment

Regular transaction in OD account and quarterly interest will be served

immediately after quarter end

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7. EBL Nobodoy

Features

Loan for agro based industries

Loan amount minimum Tk.2,00,000 - maximum Tk.1,00,00,000

Interest Rate10% p.a.

Repayable within maximum 60 months.

No security required up to 10 lac but 50% of the loan amount in the form of

FD is needed for any amount over 10 lac

Eligibility

Any agro processing business having 2 years of successful business operation

in the same line of business

Bank account in the name of the proprietor or his institution

Two guarantors required

Business cash flow must support to the proposed loan amount.

Repayment

Monthly installment

8. EBL Udoy

Features

Loan for Leather Goods producer

Loan amount from Tk1.00 lac to 10.00 lac

Interest rate is 9% per annum

Loan tenor form 6 months to 36 months

No Collateral required

Eligibility

Any sole proprietorship or partnership firm having 1 year of successful

business operation (preferred)

Bank account in the name of the proprietor or his institution

Two guarantors required

Business cash flow must support to the proposed loan amount.

Repayment

Monthly installment

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9. EBL Krishi Rin

Features

Loan for Individual Farmers/Share Cropper who are directly engaged in crop

cultivation

Loan Limit Minimum Tk.10,000 and Maximum Tk.1,50,000

Loan may be given for one time or revolving basis

No collateral required

No loan processing fee

Eligibility

Any individual Bangladeshi farmer/share cropper having minimum 1 year

experience in farming

Loan will be extended to the owners up to 15 bighas cultivable land /7.5

bighas for potato & sugarcane cultivation

Repayment

Repayment depends on harvesting of the crops

Repayment tenor minimum 3 months and maximum 12 months

10. EBL Projukti

Features

Loan for Individual Farmers for purchasing Agricultural Machinery

Loan Limit Minimum Tk.10,000 and Maximum Tk.1,50,000


No collateral required

Eligibility

Any individual Bangladeshi farmer having minimum 1 year experience in

farming

Loan will be extended to the owners up to 15 bighas cultivable land /7.5

bighas for potato & sugarcane cultivation

Repayment

Monthly Instalment

Repayment EMI basis within 3-24 months

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11. EBL Utkorsho

Feature

Collateral free loan fromTk.30,00,000 to Tk.1,00,00,000

Terminating loan facility (EMI based)

Term Loan for 12-60 months tenor

Loan for working capital, fixed assets purchase and other business purposes

Eligibility


Relevant permission from the appropriate authority to run the business

Business income to support the proposed loan installment

Minimum Tk.12,00,00,000 Annual Sales Turnover

100% Bank Reflection of Sales Turnover

Repayment

Easy Monthly instalments by 12-60 months

12. EBL Utpadon

Features

Bundle loan for any productive business enterprises

Loan amount from Tk.5,00,000 to Tk.3,00,00,000

Combination of Term Loan and Overdraft

Medium Term Loan for 2-5 years (including 1 year grace period)

Long Term Loan for 5-8 years (including 2 years grace period)

Appropriate Working Capital for 1 year (Annually renewable up to 5 years)



Eligibility



Minimum 30% equity participation by owner(s) of the business

Collateral security required along with charge on business asset

Business cash flow must support to the proposed loan amount

Repayment




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13. EBL E-Cash/Loan

Features

Cash Collateral backed Overdraft/Term Loan

Loan amount from Tk.50,000 to Tk.10,00,00,000

E-Cash: Revolving facility for 1 year

E-Loan: Term Loan for 12-60 months

Interest Rate: FD Rate+3% but minimum 12% p.a.


Eligibility



maximum 95% of Present Value of FD

Repayment




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B. Medium Segment Loan Products

1. EBL Invoice Factoring

Features

Receivable financing through invoice discounting

Limit amount maximum BDT 5 crore

Interest rate 13% per annum or as determined by bank’s ALCO time to time

Accepted invoice from list of buyers/debtors including EBL's Corporate

Clients, MNCs, Multilateral Agencies, Banks, NBFIs Insurance Companies,

NGOs

Eligibility

Any legitimate business with two years business in the same line or relevant

business

Primarily assignment of accepted invoice/receivables

Factoring Agreement with EBL

Repayment

Over 30 days but not exceeding 120 days

2. EBL Bannijyo

Features

Credit facility up to BDT 35,000,000 to any legitimate import business

Nil margin LC facility

No requirement of land/building mortgage

Post import facility up to 6 months

30% of total limit in the form of FD as collateral requ

Over Draft facility to support day to day general expenses

Eligibility

Any legitimate business with three years of operation and at least one year

experience in import business

Necessary import related documents

Business cash flow to support repayment

Repayment

Monthly installment

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3. EBL Green Credit

Features

Opportunities to save energy or implement renewable energy

Evaluate appropriateness of technological solutions

Assess the technical feasibility and economic viability of potential projects

Link up with vendors and energy service providers

Provide financing and mobilize funds for investment

Eligible Sectors

Steal Re-rolling, Light Engineering, Pulp and Paper, Cement, Poultry, Textile,

Readymade Garments, Chemicals, Plastics, Food and Beverage and Others.

Technologies and areas of intervention of these sectors with energy efficient

motors.

Waste heat recovery and Co-generation

Renewable energy consisting of solar thermal and solar PV applications,

Biomass gasification

Use of biogas to generate electricity and/or system

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C. SME Liability Products

1. SME Equity Builder

Features

Minimum installment amount BDT 500 and maximum BDT 50,000

Tenor 5 years (60 months)

Higher interest rate compare to other savings scheme in the market

Pre-mature encashment is allowed anytime

One enterprise can open multiple EBL SME Equity Builder account

90% SOD facility of the present value of the deposited amount

Free monthly statement for the Current Account and free half yearly statement

for the SME Equity Builder Account

Eligibility to open this account

Any legitimate business entity-sole proprietorship, partnership or private limited

company, with valid Trade License and other documents as per Bangladesh Bank

requirements, can open EBL SME Equity Builder Account.

2. SME Double Return

Features

Minimum Opening Amount BDT 100,000.00 (One lac) only, No upper ceiling

for Maximum Amount

Amount will be double only after 6 years

Auto renewal allowed further for 1 term (6 years) after maturity

85% SOD facility of deposited amount within 1 year and 95% after 1 year

Can be used as security for SME Loan products

Eligibility to open this account

Any SME client having valid trade license for proprietorship, partnership and

public limited company

Copy of National ID/Passport/Driving license in the name of signatories is

required

Any other legal documents as per regulatory requirement

37 | P a g e

3. EBL Subidha

Features

Daily interest bearing & half yearly interest paying Current account linked

with STD

Minimum Opening Amount Tk. 100,000

Minimum deposit requirement for interest earning TK. 100,000

Free Monthly Statement for the Current Account and Free Half Yearly

Statement for the Shubidha Account

No Ledger Fee if Shubidha Account average balance is BDT 100,000 or more;

in case of amount less than that a semi-annual ledger fee of BD 300 will be

applicable

No Intercity Transaction Fee up to BDT 10,00,000

Business Debit Card facility (Up to 3.0 Lac/day withdrawal facility)

Eligibility

Any legitimate business entity - sole proprietorship, partnership or private

limited company, with valid trade license and other documents as per

Bangladesh Bank requirements, can open EBL Shubidha Account.

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DIFFERENCE BETWEEN ISLAMIC BANKING SYSTEM

AND TRADITIONAL BANKING SYSTEM

Generally the term “Bank” means a financial institution that collects deposits from

surplus units of the society and then lends the deposits to the deficit units of the society.

The definition of Islamic Bank, as approved by the General Secretariat of the OIC, is

stated in the following manner-

“An Islamic bank is a financial institution whose statutes, rules and procedures

expressly state its commitment to the principle of Islamic Shariah and to the banning of

the receipt and payment of interest on any of its operation.”

The traditional bank(TB)s differs in theory and practice from Islamic Bank(IB)s; most

of the differences can be summarized by stating that TB’s system is a debt -based and it

allows for risk transfer. While IB’s system is asset -based and it allows for risk sharing

(Hasan & Dridi, 2006). Table (1) is a comparison between traditional and Islamic

banking system-

Characteristic Islamic banking system Traditional banking system

Business

Framework

Functions and operating modes are based on Shariah and Islamic banks must ensure that all business activities are incompliance with shariah requirements.

Functions and operating modes are based on secular principles, not religious laws or guidelines.

Interest charging

Financing is not interest (Riba) oriented and should be based on risk-and-reward sharing.

Financing is interest oriented, and a fixed or variable interest rate is charged for the use of money

Interest on

deposits

Account holders do not receive interest(riba) but may share risk and rewards of investment made by the Islamic bank

Depositors receives interest and a guarantee of principle payment

Risk sharing in equity financing

Islamic banks offer equity financing with risk sharing for a project or venture. Losses are shared on the basis of equity participation, whereas profit is shared on the basis of pre-agreed ratio.

Risk sharing is not generally offered but is available through venture capital firms and investment banks, which may also participate in management

Restrictions Islamic banks are allowed to participate only in economic activities that are Shariah compliant.

Traditional banks may finance any lawful product or service

Zakat One of the functions of the Islamic Banks is to collect and distribute zakat.

Traditional banks do not collects and pay any religious tax

Penalty on

default

Islamic banks are not allowed to

charge penalties for their enrichment. They may however

Traditional banks normally charge

additional money (compound interest) in case of late payment

39 | P a g e

allow imposition of default or late-

payment penalties on the grounds that these penalties discourage late payments or defaults, which impose

administrative costs on bank for processing and collecting the amount owed. Penalties may be donated to a

charity or used to offset collection cost.

Avoidance of

gharar

Transaction with elements of

gambling or speculation are discouraged or forbidden.

Speculative investments are allowed

Customer Relationship

The status of client is that of partner and investor

The status of a client is one of creditor and debtor

Shariah

supervisory

Board

Each Islamic bank must have a supervisory board to ensure that all its business activities are in line with Shariah’s requirement

Traditional banks do not have such requirements

Statutory requirements

An Islamic bank must be compliance with the statutory requirements of the central bank of the country in which it operates and also Shariah’s guidelines

A traditional banks must be in compliance with the statutory requirements of the Central bank of the country in which it operates and in some places, the banking laws of state or other localities.

Source: The Research Foundation of CFA Institute

From another point of view, it is important to document the critique of some scholars

regarding the differences between the two systems. They believe that those differences

are only in theory not in practice (i.e. the difference is only in the terminology).

40 | P a g e

DOCUMENTS REQUIRED TO OPEN AN ACCOUNT

IN EBL

To open a savings, current, STD account, the following documents are mandatory:

1. FOR INDIVIDUAL ACCOINT:

Account opening form: to be filled in and signed by each applicant

Two copies of Passport size Photograph of the Clients (Attested by

introducer or Verified with Passports)

Copy of National ID card/ valid Passport/ Driving License

Customer Profile.

Transaction Profile.

Photograph of the Nominee(s) attested by the account holder.

TIN Certificate

Copy of recent utility bill as a proof of mailing address

2. FOR JOINT ACCOUNT:

Account opening form: to be filled in and signed by each applicant

Copy of National ID card/ valid Passport/ Driving License of the

Proprietor.

Customer Profile.



TIN Certificate.

Relationship between the account holders.

Purpose of opening of the Joint account

Copy of recent utility bill as a proof of mailing address

3. FOR PROPRIETORSHIP ACCOUNT:

Account opening form: to be filled in and signed by the proprietor

Two copies of Passport size Photograph of the proprietor (Attested by


Copy of National ID card/ valid Passport/ Driving License of the

Proprietor.

Customer Profile.



TIN Certificate.

Trade License.

VAT Registration (if available)

41 | P a g e

4. FOR PERTNERSHIP CONCERN:

Account opening form: to be filled in and signed by each partner

Two copies of Passport size Photograph of each partner(Attested by


Copy of National ID card/ valid Passport/ Driving License of

Company Profile.

Transaction Profile of the concern.

Personal Profile of the partners.


TIN Certificate.

Trade License of the concern.

VAT Registration (if available)

Relationship between the partners.

Attested Photocopy of the Partnership Deed (Deed on Tk 1000.00stamp)

Resolution regarding opening and operation of the account.

5. FOR COMPANY ACCOUNT:

Attested or Certified copy of the Memorandum and Articles of Association.

Certificate of Incorporation.

Certificate of Commencement of Business.

Two copies of Passport size Photograph of all Directors (Attested by


Copy of National ID card/ valid Passport/ Driving License of all Directors

of the company.

Company Profile.

Transaction Profile of the company.

Personal Profile of all Directors as per enclosed sheet in the company’s

letterhead pad.

TIN Certificate.

Trade License.

VAT Registration (if available).

Board resolution of the company regarding opening and operation of the

account.

6. FOR PRIVATE SCHOOL/COLLEGE/MADRASA:

Attested or Certified copy of the Constitution.

Registration Certificate.

List of all Executive Members (as per enclosed format).

Two copies of Passport size Photograph of the account operators

(Attested by introducer or Verified with Passports)

Copy of National ID card/ valid Passport/ Driving License of the account

operators.

Personal Profile of all members of the governing body and Managing

Committee.

Board resolution regarding opening and operation of the account.

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7. FOR NGO/ CLUB-SOCIETY/CO-OPERATIVE ACCOUNT:

Registration Certificate from the Joint Stock Company/ Ministry of Social

Welfare.

List of all Executive Members (as per enclosed format).

Board resolution as per Memorandum regarding opening and operation

of the account.

Attested or Certified copy of the Constitution/Bylaws.

Two copies of Passport size Photograph of all Members (Attested by


Copy of National ID card/ valid Passport/ Driving License of all Members.

Profile of the Firm.

ebl 1

Business

role of eastern bank

g e eastern bank limited

eastern bank limited

central bank

commercial bank

creation of loan deposits

term deposits

fixed deposits