As a vital tea-producing country, Bangladesh has acquired the position of the world’s 10th largest tea grower. In the Bengal region, the tea industry started its journey during the British period. In 1839, the then East India Company commenced the tea trade in the hilly regions of Assam and Sylhet. In the Greater Chittagong, Tea cultivation was initiated in 1840. After several years of research, Commercial cultivation of tea started in 1857 from Sylhet’s Mulnicherra Tea Estate.
Currently, Bangladesh has 167 commercial tea production estates. What is more? The world's many largest working tea plantations are available here. The tea industry of Bangladesh accounts for about 3% of global tea production. Above 4 million people work in this industry and 75% of the tea laborers are women.
Tea is the 2nd major exported crop of the country that accounts for 1% of the national GDP. Currently, this industry is dominated by a handful of Bangladeshi conglomerates, counting M. M. Ispahani Limited, James Finlay Bangladesh, Kazi & Kazi, Transcom Group, Duncan Brothers Bangladesh Limited Orion Group, Abul Khair Group, etc.
The highest tea production in the country was recorded at 63.85 million kilograms in 2012. In Bangladesh, more than 56,846 hectares of land are utilized for tea cultivation, which is a significant improvement from 28,734 hectares of land in back 1947. The government is promoting the small-scale tea producers of Chittagong Hill Tracts and other places of the country to strengthen the tea industry.
At present, Bangladesh has tea gardens in several districts. And, Moulvibazar District occupies the lion’s share of the tea plantations of the country. The other major tea-producing districts of Bangladesh include Habiganj, Sylhet, Chittagong, Rangamati, Panchagarh, Brahmanbaria, etc.
Ispahani Mirzapore tea – owned by Ispahani Tea Ltd. – won the prestigious 'Best Hot Beverage Brand (Tea) Award 2020' for the 6th successive years. Furthermore, this brand acquired the 3rd position in the 'Overall Best Brand' category among the entire local and multinational tea brands in the ceremony Best Brand Award 2020.
Ispahani Mirzapore is the most admired tea brand of Ispahani Tea Ltd. This brand's best-selling products are ‘Mirzapore Best Leaf’ and ‘Mirzapore Double Chamber Tea Bags.’ The mind-blowing aroma and exclusive taste of this beverage have won the hearts of millions of people around the country. Besides the ‘Ispahani Mirzapore Tea’, Ispahani is the owner of two other tea brands, Blender's Choice Premium Tea and Zareen Premium Tea which are also popular in Bangladesh.
Since 1820, the Ispahanis have been involved with the tea industry in South Asia. Ispahani Tea Ltd. owns four tea gardens. Among those, three gardens including Mirzapore, Ghazipore, and Zareen are based in Moulvi Bazar, Sylhet region; while another garden, ‘Neptune’ is located in the Chittagong region. These gardens produce around 4 million kg of teas per year.
Capturing 50% of the national branded tea market, Ispahani Tea Ltd. acquires its position among the top tea trading companies in Bangladesh. What is more? Ispahani is the key player in the domestic tea market of the country, holding about 80% share of the branded tea-bag market.
The Ispahani Mirzapore tea sells at a premium price at the Chittagong Tea Auction. The other Ispahani tea gardens (Ghazipore, Zareen, and Neptune) also constantly claim their positions in the list of the top 10 tea gardens in Bangladesh that achieve the highest auction price.
If you are looking for an internationally-certified organic tea grower, pick the Kazi & Kazi Tea. Their tea garden is located at Tetulia, in Panchagarh – the northernmost district of Bangladesh. This heavenly place is only 50 km away from Darjeeling. This company grows organic teas for both local and overseas markets.
From August 6, 2000, Kazi & Kazi Tea Estate Ltd. started its journey of tea tree plantation by acquiring virgin lands that had never before been utilized for cultivation. Following extensive research as well as the assistance of the Bangladesh Tea Board, this tea trading company grew a large tea garden that produces the finest quality tea. In 2006 this tea trading company entered the local market of Bangladesh with the brand name ‘KK Tea.’
KK Tea is one of the top valued teas in the Chittagong tea auction. This brand produces top-quality organic tea. In the cultivation process, KK applies on-site produced bio-fertilizers and bio-pesticides using natural and organic materials. It grows both Orthodox (loose-leaf tea) and CTC (Crush, tear, curl) organic teas for the local and international markets.
KK Tea is renowned for its herbal tea that preserves the essence of 100% organic ingredients. You can choose herbal tea from diverse flavors including Lemongrass, Ginger, Tulsi, etc. The Black tea is available in several flavors such as Black Tea, First Flush Tea, Bengal Breakfast Tea, etc. The flavors of Green Teas include Jasmine Green tea, Ginger Green Tea, etc.
Besides these, Kazi & Kazi Tea Estate Ltd owns another tea brand called ‘Teatulia’. This international organic tea brand from Bangladesh was founded in 2000. Targeting the overseas markets, this brand produces some special kinds of teas such as Peppermint Tea, White Tea, Oolong tea, Neem Necter Tea, etc. The Teatulia tea is sold in foreign countries, like the USA, UK, Japan, Germany, China, etc. Teatulia is grown at the Teatulia tea garden through natural farming methods.
Fresh Premium Tea is one of the best tea brands in Bangladesh. This brand is owned by Meghna Group of Industries (MGI) – one of the largest prominent conglomerates in Bangladesh.
MGI grows a wide variety of teas for local and overseas consumption. Fresh Premium Tea offers a unique garden-fresh taste with organic flavor, bright liquor, and nice color. The blend is produced from the finest tea leaves that are carefully picked from the finest tea gardens.
If you are a fan of green tea, try the Fresh Premium Green Tea. This special tea is blended from green tender leaves that are cautiously hand-plucked. Enriched with organic mineral composition and antioxidants, this green tea bestows a refreshing taste with a natural aroma.
Fast Moving Consumer Goods (FMCG) refers to the final products, goods, and services that are used for household consumption or private consumption. FMCGs are sold rapidly at comparatively low prices and not applied in the production system of other goods and services. Usually, FMCGs have a limited shelf life. FMCG business has acquired its position among the fastest growing industries in Bangladesh. This industry has huge potential as a high volume business with a low margin. Read this article, to know about the top FMCG companies in Bangladesh.
In Bangladesh, the industry of Fast Moving Consumer Goods (FMCG) is classified into three key categories - Foods and Beverage industry, the Personal Care industry, and Household Care Industries.
Foods and Beverage Industry includes all kinds of food products such as biscuits and bakery, milk and dairy, baby foods, frozen foods, ice cream, tea, tobacco, coffee, soft drinks, health drinks, etc.
Beauty and Personal Care industry include personal care related products such as perfume, cosmetics, hair oil, toiletries products, etc.
Household Care Industry includes the products used for cleaning and decorating homes or offices. This category includes mosquito aerosol, laundry detergent, room sprays, Toilet Cleaner Liquid, Antiseptic Liquids, etc.
Best Milk and Dairy Companies in Bangladesh
‘Milk Vita’ from Bangladesh Milk Producers’ Cooperative Limited, ‘Aarong’ from BRAC Dairy and Food Project, and ‘Pran Milk’ from Pran Dairy Ltd are the leading brands holding 80% share of the pasteurized milk market in Bangladesh. The rest 20% share is held by the other brands such as ‘Aftab Milk’ from Aftab Milk & Milk Products Ltd, ‘Farm Fresh Milk’ from Akij Food and Beverage Ltd, ‘MOO’ from American Dairy Limited, ‘Dairy Fresh’ from Baro Awlia Dairy Milk & Foods Ltd, ‘Ayran’ from Danish Dairy Farm Ltd, etc.
Best Biscuit & Bakery Companies in Bangladesh
The local brands can fulfill about 90- 95% of the domestic demand for Biscuits in Bangladesh and the rest portion is imported from overseas countries. Occupying about 39% market share, Olympic Industries appears as the dominating player in the branded biscuits market of Bangladesh.
The other popular Biscuit and Bakery manufacturing companies include Pran Foods Ltd, Rani Food Industries Ltd, Ifad Multi Products Ltd, Kishwan Snacks Ltd, Haque Food Industries, Danish Foods, Nabisco Bread and Biscuits, Bangas Limited, Al-Amin Bread & Biscuit Industries Ltd, Cocola Food Products Ltd, etc.
Best Frozen Food Companies in Bangladesh
In the segment of processed meat and frozen snacks, Golden Harvest Agro Industries Limited is the pioneer holding 25% of the market. In this line, Lamisa Foods is in the second position with a 15% market share. The other major brands include Brac Chicken, Pran RFL, Kazi farms, CP Bangladesh, Igloo Foods, KFC Bangladesh, Rich Foods, etc.
Best Ice-Cream Brands in Bangladesh
Holding about 36% market share, ‘Igloo’ from Abdul Monem Limited is the most preferred ice-cream brand by the Bangladeshi consumers. ‘Polar’ from Dhaka Ice Cream Industries Limited appears as the second market leader occupying a 26% market share. In this channel, the other major brands are ‘Golden Harvest Ice Cream’ from Golden Harvest Ice Cream Ltd, ‘Bellissimo Creations’ from Bellissimo BD, and ‘Kwality’ from Sanowara Group.
Best Tobacco Companies in Bangladesh
In the tobacco industry of Bangladeshi, the dominating players are British American Tobacco (BATBC), Dhaka Tobacco (under Akij Group), Abul Khair Tobacco, and Nasir Tobacco.
‘Ispahani Mirzapore’ from M.M Ispahani Limited is the most admired tea brand in Bangladeshi. The other pioneering tea brands of the country are ‘Taaza’ from Unilever and ‘Seylon’ from Abul Khair Consumer Goods and ‘Finlay’ tea from The Consolidated Tea and Lands Company Bangladesh.
Best Drinks and Beverages Companies in Bangladesh
‘Mum’ from Partex Beverage Ltd is the market leader in the bottled water segment. ‘Fresh’ from Meghna Group of Industries and ‘Pran’ from Pran Foods holds a significant share in the Bottled Water industry. Besides these, there are some other popular bottled water brands in Bangladesh such as ‘Jibon’ from City Group, ‘Acme’ from The ACME Agrovet & Beverages Ltd, ‘Ifad’ from Ifad Multi Products Ltd, ‘Spa’ from Akij Food & Beverage Ltd, ‘Muskan’ from S.A. Group of Industries, etc.
In the segment of Health Drinks, the market is dominated by ‘Horlicks’ from GSK Bangladesh (Currently owned by Unilever). Besides this, ‘Complan’ from Transcom Beverage, ‘Maltova’ from GSK Bangladesh, ‘Tang’ from Sajeeb Group, are very popular health drink brands in Bangladesh.
Transcom Beverages Ltd (TBL) is the PepsiCo Franchisee for bottling ‘7up’, the most renowned Carbonated Soft drink brand in Bangladesh. TBL also supplies several other popular soft drinks such as Mountain Dew, Pepsi, Mirinda, Slice, 7UP Light, and Pepsi Diet.
‘Pran Frooto’ is the most popular juice in Bangladesh. It is the flagship beverage of Pran RFL Group. This company also produces some other famous juice and carbonated drinks, like, Fazlee, Pran, Cola, Pran Up, Maxx Cola, Tango, Ody, Bulldozer, Power Drink, Colors Drink, PRAN Apple Fizz, etc.
‘Frutika’ by Akij Food & Beverage Ltd is another leading juice brand in the country. This company also produces some other well-known soft drinks like Clemon, Mojo, Aafi, Speed, etc.
‘Mangolee’ is another popular juice made by GSDL (Globe Soft Drinks Limited). Besides this, GSDL & AST Beverage is a franchisee of some well-known soft drinks and energy drinks, including, URO Cola, FizzUp, URO Lemon, Black Horse, Royal Tiger Energy Drinks, etc.
Abul Khair Consumer Goods Division produces Starship Mango Drink, Starship Chocolate Milk, Starship Fruity, Saad Litchi Drink, Shaad Orange Drink, and Marks Chocolate Milk.
‘Shezan’ juice products from Sajeeb Group and ‘Nectar’ juice from BD Thai Food & Beverage Limited (BTFBL) are also popular in Bangladesh.
AM Beverage limited or Abdul Monem Ltd. (AML) is the authorized bottler of several popular soft drinks such as Coca-Cola, Fanta, and Sprite. International Beverages Private Limited is also associated with the production and distribution of Coca-Cola beverages in Bangladesh.
Partex Beverages produces a bunch of popular soft drinks like RC Cola, RC Lemon, RC Orange, RC Zera Pani, etc.
Best Food Ingredients and Snacks Brands in Bangladesh
In the segment of Atta, Maida, and Suzi related food products, ‘Fresh’ owned by Meghna Group is the top market player. The other significant brands are ‘Teer’ by City Group, ‘Pusti’ by TK Group, ‘ACI Pure’ by ACI Limited, ‘Sajeeb’ by Sajeeb Group, ‘Ifad’ by Ifad Multi Products Ltd, ‘Fouzi’ by Sena Kalyan Sangstha, etc.
In the Spice category, the most popular brands are Radhuni, Pran, BD Food, and Arku. Square Food & Beverage produces Spice products under the ‘Radhuni’ brand that holds around 66% of the local market share in Bangladesh. ‘Pran’ spices produced from Pran Foods Ltd occupies about 19% market share, ‘BD Food’ spices from BD Foods Ltd holds around 7% of the market share, ‘Arku’ spices from Arku Group Ltd holds about 3% of the market share.
In the Salt industry of Bangladesh, the chief brands are ‘ACI Pure Salt’ from ACI Limited, ‘Molla Super Salt’ from Molla Super Salt Industry Ltd, ‘Fresh Super Premium Salt’ from Meghna Group, and ‘Confidence Salt’ from Confidence Salt Ltd.
In the sector of Noodles, the most admired brands are ‘Maggi’ from Nestle Bangladesh, ‘Cocola’ from Cocola Food Products Ltd, ‘Mr. Noodles’ from Pran, ‘Doodles’ from New Zealand Dairy, ‘Ifad’ from Ifad Multi Products Ltd, ‘Sajeeb’ from Sajeeb Group, ‘Mama’ from Presidents Foods, ‘Knorr’ from Unilever Bangladesh Ltd, and ‘Chopstick’ from Square Foods.
In Bangladesh, the local companies produce toiletries and perfumes related products under affordable price ranges. These local brands mainly target the niche of the low to middle price market. Almost 95% of the total market share is dominated by seven companies. Those are Unilever Bangladesh Ltd., Keya Cosmetics Ltd., Lily Cosmetics Ltd., Marks & Allys Ltd., Aromatic Cosmetics Ltd., Square Toiletries Ltd., and Kohinoor Chemical Company Ltd.
In the segment of Toilet Soap, Unilever Bangladesh Ltd solely owns about 43% of the local market share. The other three key players including Keya Cosmetics Ltd, Lily Cosmetics Ltd, and Kohinoor Chemical Company Ltd hold around 10% of the market share each.
Unilever Bangladesh Ltd is the leading company in the segment of Fairness Cream, Lotion, Shampoo, and Oran Care products.
In the Mosquito Aerosol category, ‘Xpel’ from Square Toiletries is the top brand in Bangladesh. Among the other popular brands, there are ‘ACI Mosquito Aerosol Spray’ from ACI Limited, ‘Hit’ from Godrej group, and ‘Mortein’ by Reckitt Benckiser Ltd.
In the segment of Laundry Detergent, the most popular brands are Wheel, Surf Excel, and Rin. All of these products are owned by Unilever Bangladesh Limited.
In the Liquid Antiseptic sector, ‘Savlon’ from ACI Limited is the market leader. Then ‘Dettol’ from Reckitt Benckiser Bangladesh Ltd occupies second place in this category.
In the Plastic goods industry, the dominating players are RFL Plastics Limited, Bengal Plastic, and Partex Plastics Limited.
In the sector of Toilet Cleaner Liquids, the key player is ‘Harpic’ by Reckitt Benckiser Bangladesh. Among the other popular Toilet Cleaner brands, there are ‘Clean Master’ by Kohinoor Chemical Company, and ‘Shakti’ by Square Toiletries Ltd.
Asian American households saw the biggest income growth of any racial or ethnic group in the United States over the past decade and a half — almost 8%, according to figures released Thursday by the U.S. Census Bureau.
Household income for Latinos grew by nearly 6% over that time, while households led by non-Hispanic whites and Blacks had comparatively stagnant income growth — 3% and almost 2% respectively — over the past decade and a half.
Nationwide, median household income grew 2.3% from the 2005-2009 period to the 2015-2019 period, according to the latest 5-year American Community Survey.
Economists said a lot of the difference in income growth among racial and ethnic groups has to do with the thriving job markets where Asian American and Latino-led households are concentrated — cities and communities in the West and Southwest.
“As the labor market tightened more in certain areas and in certain fields we would see more robust income growth for those groups,” Ohio State economist Trevon Logan said in an email. “Also, higher concentration in urban areas with larger job growth and increases in minimum wage can also play a role in income gains.”
While income growth has been comparatively flat in a vast majority of U.S. counties, it has been concentrated in a handful of communities, said William Spriggs, an economist at Howard University.
“So, I suspect recent Asian and Latino immigration has been to these high growth areas,” Spriggs said.
Education also played an important role, said Marlene Kim, an economist at the University of Massachusetts Boston. More than 54% of Asian Americans had a bachelor’s degree, the highest of any racial or ethnic group, compared to 32% overall for U.S. residents, according to the 2015-2019 American Community Survey.
By comparison, 35.8% of non-Hispanic whites, 21.6% of Blacks and 16.4% of Latinos had bachelor’s degrees.
“We are in a knowledge economy and a college education is key to getting professional jobs that pay well. Asians have the highest percentage of getting a college degree and I think you are seeing that effect,” Kim said. “Asians are more likely to be in professional and technical jobs, which are thriving and increasing their pay and income level.”
But there are wide differences among Asian Americans — a diverse racial category that include Americans with roots in China, India, the Philippines and other Asian nations. Americans of Indian origin had higher rates of college education than those of Cambodian and Hmong origin, according to a report last year from the Pew Research Center.
By the same measure, location and job markets also played a role in the stagnant income growth for Black-led households, with large numbers geographically clustered in the South, economists said.
“For Black households, we continue to see them struggle for the same reasons. Blacks are over-represented in public employment, which experienced anemic income growth,” Logan said. “Also, Blacks in rural areas, especially in the rural South, are located in places with substantial business losses and weak job growth.”
Discrimination in hiring and promotions also are factors as well as policy decisions, he said.
“For example, we know increasing the minimum wage would close racial income gaps, and Blacks are disproportionately located in states, localities that have not done so,” Logan said.
The concentration of Black high tech workers in places like Atlanta and Washington instead of Silicon Valley or Boston also worked against income gains for Black households, Spriggs said.
“As the economy emerged out of the Great Recession, essentially the key factor in what is being measured, discrimination in the labor market locked higher skilled Black workers out,” he said. “The extremely high level of geographic segregation of the Black IT work force prevents bigger gains from the largest middle-class sector for Black workers.”
National Urban League President and CEO Marc Morial said increasing the minimum hourly wage to $15 would create an income floor from which people could take care of their basic needs, but he added high tech needs to do a better job of hiring Black workers.
“This is the direction that jobs are going in,” Morial said. “There has been a lack of commitment to diversity, and in some cases, discriminatory hiring.”
The five-year American Community Survey measures all sorts of demographic traits about the U.S. in half-decade chunks. But the latest data doesn’t capture the economic upheaval caused by the pandemic in 2020, including how the unemployment rate for Asian Americans shot up from 2.6% to 12% before declining to 6.7% in the past year.
Households led by Asian Americans had a median household income of $88,204 over the five year period covered by the 2015-2019 American Community Survey, the highest of any racial or ethnic group. Asian Americans make up almost 6% of the U.S. population.
Nationwide, the median household income for 2015-2019 was $62,843. The median income for Non-Hispanic white households was $68,785. It was $51,811 for Latino-lead households and $41,935 for Black-lead households.
Speakers at a webinar discussion here underscored the need for bilateral cooperation in agriculture between India and Bangladesh to overcome the existing problems caused by COVID-19.
South Asian Network on Economic Modeling (SANEM) and Asian Confluence jointly organised the discussion meeting titled “Regional Cooperation in Trade and Development of Agriculture: Perspectives from Bangladesh and India.”
Conducted by Dr Selim Raihan, Executive Director of SANEM, the webinar hosted an expert panel discussion as academicians, researchers, journalists, agriculture experts, development practitioners, businessmen and students took part in it.
Dr Selim Raihan, also a professor of Economics department at Dhaka University, hoped that SANEM and Asian Confluence will continue to collaborate in fostering intellectual discussions promoting regional cooperation and trade.
“Farmers in Bangladesh don’t have any expertise on marketing of their products and thus they should be trained in this regard. However, increasing bilateral cooperation and trade in agriculture, political willingness is most important,” he added.
Sabyasachi Dutta, Executive Director of Asian Confluence, India East Asia Center at Shillong in India, described the necessity of cooperation between India and Bangladesh in agricultural sector.
“In the context of the ongoing pandemic, cooperation in agriculture has become all the more important. The effective role of think-tanks in increasing regional cooperation,” Dutta pointed out.
Abdus Salam, Managing Director of Organic Bangladesh Limited, said Bangladesh can gain advantage in export of agricultural products, in competition with other countries through regional cooperation.
“Such collaboration can benefit farmers of both countries, increase regional trade and assist in export earning,” he added.
Dr M Nahid Sattar, Associate Professor of Agricultural Economics department at Bangladesh Agricultural University, said the pandemic has affected income and in turn the consumption of the mass people, which has significantly decreased the sale of agricultural products.
To tackle these problems, he stressed the need for commercial transformation of agriculture and development of market management structure in Bangladesh.
Life is full of uncertainties. We can’t always anticipate what is coming ahead. Sometimes, destiny puts us in situations – whether good or bad – when we face an instant need for money. Sometimes our instant financial need overflows our budget or bank balance. Then we have no other choice left but to borrow money. Many of us feel ashamed of borrowing money from friends and relatives due to self-respect issues. Now, what’s the way out?
Nowadays, many banks and financial organizations in Bangladesh are offering ‘Advanced Loan against Salary’ to salaried executives. This type ‘Personal Loan’ is provided on the basis of an individual’s monthly salary multiples. This loan is also popular as ‘Any Purpose Loan’ as it is provided to fulfill any legitimate need of the borrower. Self-employed professionals, business owners, and landlords also get loans under these schemes.
You can take a personal loan to meet any ‘legitimate’ personal financial need, like medical treatment, education, tourism, marriage, home renovation, interior designing, purchasing consumer goods, purchasing different tools and equipment for office set up, etc.
In this article, we are gonna introduce you to some renowned scheduled banks and financial organizations that are currently offering worthwhile Personal Loan Deals in Bangladesh.
In this section, we have focused on some vital parameters to find which bank is providing the best personal loan deal for you.
Interest rates are basically two types: fixed and floating. From our survey, it revealed that the banks mostly set floating interest rates on their loan products.
The above info-graph shows the initial rate of interest for ‘Personal Loan’ for different banks in Bangladesh. Averagely, the initial interest rate fluctuates around 11 to 13 percent. A few banks like BCB demand a higher (about 17%) rate of interest. However, the rate of interest is about to change any time depending on respective bank policy.
If you need a good deal of money for medical treatment or marriage or any other legitimate purpose, it is wise to check out which banks are offering the highest loan ceiling.
On average, most of the banks in Bangladesh sanction a maximum of 10 to 20 lacs in BDT under Personal Loan/ Any Purpose Loan/Advanced Loan against Salary scheme. For some banks the loan ceiling may be lower. For instance, NCC Bank offers maximum 1 lac BDT under ‘Personal Loan’ scheme.
Some banks are offering ‘Advanced Loan against Salary’. This kind of loan product is especially designed for salaried executives who draw salary through any government approved bank in Bangladesh. It depends on the bank policy how much money can you get against your current monthly salary.
The above graph reveals the trend of advanced loan against salary multiples offered by several reputed banks in Bangladesh. Researching a number of renowned scheduled banks in Bangladesh, we noticed that generally banks offer 10 to 15 multiples of the monthly salary amounts as ‘Advanced Loan against Salary’. However, EBL stands out from the other banks in offering the maximum multiples (up to 20 times) of salary as advanced loan.
For sudden financial requirement you may need to borrow a small range loan. The scheduled Banks in Bangladesh provide personal loan starting from minimum 25000 BDT.
Our research shows that most of the scheduled banks in Bangladesh provide a minimum 50 thousands BDT for ‘personal loan’ or ‘any purpose loan’. However, some banks – like City Bank and EBL – don’t approve applications for personal loan when the expected loan amount falls below one lac BDT.
Loan Repayment Tenure
Though loan tenure depends on the policy of respective bank, the tenure can be cut short depending on the borrower’s age. For instant, if banks set maximum age limit 60 years on loan-maturity. Then, a 59 year old person can get Personal Loan; but s/he gets only one year for repaying the total loan amount.
Starting from a minimum six months, an individual borrower usually avails 5 years period to repay his/her loan including interest. However, a few banks like NCC Bank and BCB sanction loan for limited tenure (3 years). On the other hand, NRBC Bank offers extensive tenure (6 years) for loan repayment.
The scheduled banks in Bangladesh provide ‘Any Purpose Loan’ or ‘personal loan’ or ‘Advanced Loan against Salary’ to the deserved customers who can meet the specific standards set by respective bank policy. In this section, we are gonna discuss some significant factors which the banks tend to evaluate before sanctioning any personal loan.
While evaluating any loan application, the banks evaluate the client’s income-expenditure profile and calculate the Debt Burden Ratio (DBR). In simple words, DBR calculates the burden of your liabilities (loan EMI, and other monthly expenditure) over your earning (monthly).
The maximum allowed range of DBR varies depending on monthly earning. For instance, banks may allow up to 60% DBR when you earn two lacs BDT per month. The same banks may not approve your loan loans when the DBR crosses 40%, if your monthly earning falls below fifty thousand BDT.
Our research shows that the renowned scheduled banks choose prospective clients with lesser DBR profiles. It seems that the possibility of loan approval increases while the DBR value decreases. While approving ‘personal loan’ the scheduled banks tend to keep the DBR range within 40 to 60 percentages, in general.
If you are a salaried executive you can’t get a loan after taking retirement from your office according to Government policy. In Bangladesh, the age of retirement is mostly 60 or 65 years. The scheduled banks approve ‘personal loan’ calculating the borrower’s age of retirement at the end of loan tenure. Usually, the banks want their clients to complete the loan tenure before hitting retirement age. However, the maximum age limit for getting a loan may vary depending on the borrower’s occupation type. And the minimum age of getting any loan starts from 18 years.
The above graph depicts the age range for personal loan approval by the government approved banks in Bangladesh. Mostly the banks are comfortable to offer loans to 21 years or older clients. The maximum limit of age is hovering around 60 to 65, on average. However, some banks like NCC Bank don't approve loan to clients over 50 years; whereas DBBL allows up to 70 years – at the end of loan tenure.
Banks are highly interested to offer ‘personal loan’ to salaried executives, professionals, business owners, landlords, self-employed and government employees who make handsome amounts per month on a regular basis. However, the minimum earning requirement for loan approval may vary depending on the prospective borrower’s occupation type. For instance, earning requirement is a bit flexible for government professionals.
The above graph represents the trend of minimum required monthly earning for salaried executives working in private sector organizations. A good number of banks are ready to offer ‘Personal Loan’ for minimum monthly earning of 15 thousands BDT. Average banks require 20 to 25 thousands earning per month. While a few financial organization and banks (like IPDC and NRB Bank) expect a bit higher level of earning.
The required length of work experience varies for government employees, private salaried executives, self-employed professionals, businessmen and landlords. Usually, the scheduled banks have flexible earning requirement for the renowned businessmen, Government officials, successful professional, etc.
The above info graph reveals the length of required work experience for salaried executives working in private sector. Mostly the scheduled banks are comfortable to provide loans to permanent executives working in well-known organizations. A significant number of banks want 2 to 3 years of continuous work experience with at least one year working history with the current employer.
Opportunity of getting Advanced Loan against Salary is a windfall for many salaried executives in the moment of crisis. People from other profession can avail this opportunity taking ‘Personal Loan’ or ‘Any Purpose Loan’. Some banks are providing ‘Special Loan’ to professionals working under some specific sectors. Therefore, it behooves upon you to find an appropriate Loan Scheme that complies with your specific legitimate financial need.
Our research also shows that a good number of banks are offering as high as 20 lacs BDT as ‘Personal Loan’. However, under the scheme of Advanced Loan against Salary, the banks decide the loan ceiling counting monthly salary multiplications of the salaried executives. On average, the scheduled banks sanction 10 to 20 times of monthly salary as loan amount.
And, most of the banks provide 50 thousands BDT as minimum amount under ‘Personal Loan’ category. Though the scheduled banks in Bangladesh allow 5 years loan tenure, this term might be shorter depending upon the maximum age limit set by respective bank as well as the retirement age of the borrower from his/her current working place. Usually, banks prefer clients aged not less than 21 years and not more than 65 years.
Minimum required monthly earning ranges from 15 to 30 thousands BDT depending on specific policy set by respective bank. And, for work experience the scheduled banks require 1 to 3 years of continuous experience under reputed institutions.
In this article, we have analyzed ‘Personal Loan’ schemes offered by different scheduled banks and financial organizations in Bangladesh. Due to the inadequacy of time, budget, and manpower, we couldn’t research all banks. But we have tried our level best to overview the lucrative offers for Personal Loan in Bangladesh. Hope it helps!
Also Read: Home Loans in Bangladesh