Karmasangstan Bank Loan Programs

The Government’s visionary move in 1998 led to the establishment of Karmasangsthan Bank through Act No. 7 of 1998, known as the Karmasangsthan Bank Act 1998. The primary objective was clear: to generate employment opportunities for the nation’s unemployed youth. This initiative complemented the ongoing efforts by private and public sector specialized banks in creating job opportunities. Despite facing certain limitations since its inception, Karmasangsthan Bank has remained steadfast in its commitment to serve its core purpose – supporting the self-employment of unemployed youths.

One of the remarkable achievements of Karmasangsthan Bank is its nationwide reach. In the past fiscal year, the bank orchestrated extensive loan disbursement programs, efficiently coordinating through 33 regional offices and 277 branches across the country. This expansive presence allowed the bank to directly contribute to the economic development of the nation while aligning with the Government’s commitment to tackle the pervasive issue of unemployment.

Karmasangstan Bank provides loans under the following programs:

Program NameDescription
Self-Employment for Educated Unemployed YouthProvides financial assistance for self-employment ventures, especially for educated unemployed youth, to create self-employment opportunities.
Special Program for Employment in Agricultural SectorOffers support for the development of agricultural-based industries, creating opportunities in rural areas and contributing to the growth of the agriculture sector.
Self-Employment for Released/Retired Industrial WorkersProvides small loans without collateral to self-employed small-scale industrial workers, particularly those who are released or retired, to promote self-employment.
Eradication of Hazardous Child Labor in BangladeshAims to eliminate hazardous child labor in Bangladesh by offering small loans to parents of child laborers who are employed in hazardous work, encouraging self-employment.
Fisheries and Livestock Loan Assistance ProgramSupports economic growth and improvement in health and intelligence through the expansion of animal husbandry and the creation of job opportunities.
‘Dairy Production and Artificial Insemination Scheme’Promotes dairy production and increases income through artificial insemination, extending financial assistance.
Consumer Credit Scheme/Personal LoansProvides loans at low interest rates for bank’s permanent employees to purchase essential consumer goods.
Computer/Laptop Purchase LoanOffers loans to bank’s permanent employees for skill development in information technology by purchasing computers or laptops.
Home Construction LoanProvides low-interest loans to bank’s permanent employees for housing facility creation.
Motorcycle LoanOffers loans to bank’s permanent employees to improve transportation and communication facilities.
Bangabandhu Youth LoanAims to provide financial assistance to the unemployed youth of the country for self-employment and poverty alleviation.
COVID-19 Economic Recovery and Employment CreationProvides financial assistance to various sectors to create employment and sustain production and supply in response to the COVID-19 pandemic.
Supporting Post-COVID-19 Small Scale EmploymentFocuses on the operation of cottages, micro, and small enterprises (CMSEs) especially run by youth and rural women entrepreneurs for economic support and development.

Types of projects eligible for loans

Types of Accounts for Providing LoansExamples of Eligible Projects
1) Fisheries ResourcesFish farming: Carp, catfish, prawns, tilapia, mixed fish farming, and pond-based shrimp production.
2) Livestock ResourcesDairy farming, cattle fattening, goat/sheep rearing, broiler/layer poultry farming, and turkey farming.
3) Transportation ServicesProviding loan for product/ passenger transport services through auto-rickshaws/three-wheelers.
4) Cottage and Small IndustriesFish hatcheries, poultry hatcheries, agricultural machinery manufacturing, animal feed production, etc.
5) Small and Cottage IndustriesHandicrafts, handloom work, block printing, rural sanitary latrine production, weaving, and sericulture.
6) Other Production ProjectsMushroom cultivation, vegetable farming, silk production, fruit farming, beekeeping, and art/crafts.
7) Service SectorSaloon/barber, beauty parlors, herbal treatments, power tiller, computer services, photocopy services, etc.
8) Commercial AccountsRetailers, departmental stores, garment business, livestock/poultry feed sales, agricultural product trade, and more.

Please note that these categories represent various types of projects eligible for loans, and the list is not exhaustive. The specific projects may vary, so it’s advisable to contact the bank or organization for detailed information about loan eligibility and requirements.

Eligibility for Getting a Loan at Karmasangstan Bank:

(a) The applicant must be a citizen of Bangladesh.
(b) The applicant must be a permanent resident of the branch’s jurisdiction. If not, a permanent resident of the branch’s jurisdiction must act as a guarantor for the loan.
(c) The applicant should be unemployed or partially employed.
(d) The usual age range for loan applicants is between 18 and 50 years. However, age limits may be flexible for previous loan recipients.
(e) The applicant must have the capacity to carry out equity activities (where applicable).
(f) Adequate training/experience in project management is required.
(g) The applicant must possess the ability to repay the loan, along with good financial conduct.
(h) Individuals with a history of defaulting on loans from other banks, financial institutions, NGOs, or private organizations are not eligible for a loan.
(i) The applicant must comply with other terms and conditions of the loan policy.

Please note that these eligibility criteria are subject to the bank’s loan policy and may change over time. Applicants should always refer to the most current loan eligibility guidelines provided by Karmasangstan Bank.

Interest Rate

No.Program NameInterest Rate
1Bangabandhu Youth Loan Program9% (Simple)
2Bangladesh Bank Fisheries and Livestock Loan Assistance Program (1st, 2nd, 3rd, and 4th Phase)8% (Simple)
3Poverty Alleviation and Employment Generation Loan Assistance Program for COVID-19 Resilience and Economic Growth9% (Simple)
4Bangabandhu Youth Loan Program under the Coverage of Bangladesh Bank8% (Simple)
5Assistance Program for Individuals with Low Income Affected by Ongoing COVID-19 Situations due to Enforced Prohibitory Orders4% (Simple)
6Loan Assistance Program for Agriculture-Based Industries: (a) Project Loan – 8% (Simple) (b) Working Capital Loan – 9% (Simple)
7Loan Assistance for the Establishment of Small Loans for Voluntary Retirement/Dismissed Workers/Employees in Industrial FactoriesOne-time Service Charge – 8%
8Repayment Assistance Program for Bangladesh Bank Dairy Production and Artificial Insemination Accounts3% (Simple)
9Individual Loan Program: (a) Production and Service Sector Account – 9% (Simple) (b) Commercial Account – 9% (Simple)
10Loan Program for Widows/Divorced Unemployed Youth Women8% (Simple)
11Loan Program for Unemployed Youth with Special Needs (Disabled): 8% (Simple Interest) A 1% Rebate on Interest Rate within the Specified Time Frame for Regular Loan Repayers
12Loan Program for the Hijra Community8% (Simple Interest) A 1% Rebate on Interest Rate within the Specified Time Frame for Loan Repayers

Please note that the interest rates are simple and may be subject to change.

Frequently Asked Questions (FAQs) for Karmasangstan Bank Loan Programs

Q1: How do I open a savings deposit account with Karmasangstan Bank?
A1: To open a savings deposit account, visit any branch of Karmasangstan Bank and provide the required documents as mentioned in the account opening section.

Q2: Can I deposit any amount in my savings deposit account?
A2: Yes, you can deposit any amount you choose into your savings deposit account.

Q3: What is the current interest rate for the savings deposit account?
A3: The current interest rate is 3.50%, but it may change over time. Please check with the bank for the most up-to-date rate.

Q4: Can I open an account on any working day of the month?
A4: Yes, you can open an account on any working day of the month.

Q5: What documents are required for opening an account?
A5: You’ll need two passport-size photographs, one for the nominee, a photocopy of your National ID or Passport, a nationality certificate, and a filled-up KYC form. You may also need a TIN certificate if applicable.

Q6: Can I open an account in any branch of Karmasangstan Bank?
A6: Yes, you can open an account in any branch of the bank.

Q7: Are there any other required documents apart from those listed?
A7: Depending on your specific situation, you may need additional documents. Please check with the bank for any other requirements.

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