Al Arafah Islami Bank CMSME Investment Products

Micro Small & Medium Enterprise (MSME) has been playing an important role in the economic growth and development of the country. In the ongoing economy, MSMEs continue to serve as a platform for employment generation, income generation, and development of advanced and backward industrial linkages. Hence, MSMEs occupies a very important role in the economy.

Micro, Small, and Medium Enterprises (MSMEs) form the largest part of the employment base and indeed, often form the basis of the local private sector, as research reports in many developing countries show. In most cases, micro-enterprises come directly from cottage industries. Al Arafah Islami Bank therefore, considers cottage industries when considering micro enterprises.

What is the role of MSME in the economy of Bangladesh?

MSMEs constitute the major source of industrial employment in Bangladesh accounting for about 80 percent, and about 90 percent of industrial units fall into this category. The actual performance of MSMEs, however, varies depending on relative economic efficiency, economic policy environment, and specific promotion policies.

Al-Arafah Islami Bank’s CMSME Banking products

• Al-Arafah Women Entrepreneurs
• Micro Enterprise Investment Scheme
• Rural Agricultural Investment Scheme
• Small Enterprise Investment Festival
• Small Enterprise Investment Scheme.

Eligibility for the Investment products

• Any permanent resident of Bangladesh
• The age between 25 years to 60 years
• Educated persons
• Skilled in managing his / her business successfully
• Sufficient Infra-structure and skilled personnel
• At least 02 (two) years of experience in the applied business
• Having a Transparent CIB Report
• Valid Licenses, such as Trade License, VAT registration, TIN, and NOC from Environment Department (where applicable)
• Other terms and conditions stipulated by the bank.

What is the definition of MSME Enterprise?

Al-Arafah Islami Bank’s main objective of MSME banking

• For the convenience of small and medium entrepreneurs
• To boost small business in Bangladesh
• To increase the Agro-industry
• Aiming to create employment
• Extending Islamic banking to the social level
• Encouraging women entrepreneurs in Bangladesh.

What are the modes of Investment and Profit/ Rent rates?

• Working Capital Investment
• Fixed Capital Investment.

What are Securities against investment?

• Personal guarantee of other family members (spouse/parents).
• In the case of a small company, a guarantee of all directors other than the nominee director shall be obtained
• Registered mortgage of immovable property with registered power of attorney (2 lakhs and above)
• Third-party personal guarantee of the company (at least one).
• Postdated check for each installment and an undated check for full investment value with full markup profit.
• Estimates related to inventory, receivables, prepayments, plant, and equipment
• Eligible investment is maximum Tk. 2 lakh
• Other securities specified by the bank depending on the type of investment.

Finally, a person who has an MSME business and good financial growth of the company can apply for this MSME investment plan. The person/ company can take the loan individually or jointly with an eligible member of his family.

Frequently Asked Questions (FAQs) for Al Arafah Bank MSME investment products

What is the interest rate of Al Arafah Bank?

• Depends on the working capital and fixed capital

How can I apply for investment in CMSME Banking products?

• You can contact any branch of Al Arafah Bank or online

What is the contact address of Al-Arafah Islami Bank Limited?