Karmasansthan Bank Own Loans

In Bangladesh, an agricultural country, the government places special emphasis on the agricultural sector. Agriculture not only sustains the nation’s food requirements but also plays a vital role in earning foreign currency through food exports.

As part of our commitment to fostering SME business growth, Karmasansthan Bank Own Loans has identified and addressed various gaps within our client base. One significant gap pertains to the funding requirements of our SME customers. To bridge this gap effectively, we offer the following tailored loan solutions for our valued SME clients.

Karmasansthan Bank Loans Products in Bangladesh

There are many types of SME loans available in Bangladeshi Banks, but each loan is generally defined by four main factors:

  • Principal: The amount of money you have borrowed. Generally, 25 lacs for a single persona and 50 lacs for a group of people. This amount is usually reinvested in their business to grow their capital.
  • Tenure: How many days do you have to repay the entire loan. Customers will get a maximum of 8 years.
  • The interest rate: The annual amount you have to pay the lender to borrow money, is shown as a percentage of the current principal balance.
  • Repayment frequency: The borrower pays back their mortgage, usually on a monthly or bi-weekly basis.

Key Features of Karmasansthan Bank Loan

  • Loan Details:
  • Interest Rate: 9.00%
  • Loan Amount: Up to 50 lacs
  • Loan Tenure: Up to 8 years
  • Objectives of the Loan:
    • Engaging the country’s unemployed, with a particular focus on youth, in economic development activities.
    • Facilitating the creation of self-employment opportunities.
    • Empowering individuals to become self-reliant.
    • Encouraging entrepreneurship through investments in cottage industries, including agricultural product processing.
    • Aiding in poverty alleviation efforts.
    • Contributing to an increase in the national Gross Domestic Product (GDP).

Sectors of the loan products

There are three types of loans for the customer. 1. Productive sector, 2. Commercial Sector and 3. Service sector.

A. Productive Sector business model

Agricultural Production

These credit activities are conducted in short-term, more profitable sectors such as mushroom cultivation, vegetable cultivation, sericulture, fruit cultivation, bee cultivation, betel nut/bean cultivation, flower cultivation, etc.

Nursery Plant Production

This loan is more profitable in short-term sectors, including fruits guava seedlings, lemon, orange, dragon, Elephant apple, Orange, Coconut seedlings, etc., flower, and wood tree plants.

Fish Farming

Fish farming is increasing day by day in Bangladesh as fish is the only lucrative and profitable business to provide meat. Many of us do not know what is important to do when starting a fish farming project. Adopting a fish farming project is an important factor in making a profit in fish farming. We have to take care of some things at the beginning of fish farming for proper fish farming through the project. You can take this loan to improve your fish farming project:

(i) Carp (Katla, Rui, Mrigel etc.), Monosex Tilapia, Vetki, Chital, Koi, Thai Koi, Shoal, Carrot, Puti etc.

(ii) Catfish-Pangas, Boal, Pabda, Tangra, Singh, Magur, Prawns, mixed fisheries, etc., and production of fingerlings (in ponds).


The demand for livestock in Bangladesh is increasing day by day so new entrepreneurs can run the following farms under this loan:

a) Poultry Farm: Chicken (Layer, Broiler, Cock) Farm, Quail Farm, Turkey Farm, Duck Farm, Swan Farm, Peacock Farm, Pigeon Farm, Pheasant Farm, etc.

b) Livestock fattening: Cow fattening, goat fattening, sheep/mutton fattening, buffalo fattening, etc.

c) Dairy Farms: Cow Dairy Farms, Goat Dairy Farms, Sheep/Sheep Dairy Farms, Buffalo Dairy Farms, etc.


Small, large, and medium-sized industries have a lot of potentials to make profits, so an entrepreneur can come under this loan to grow his business, such as fish hatcheries, poultry hatcheries, agricultural machinery factories, animal feed factories, Fish feed processing plant, Chili/Muri mill/Industry, Rice mill/Rice mill, Bakery industry, Oil mill/Oil mill, Sawmill, Fruit food industry (Jam, Jelly, Juice, Pickle, Syrup, Syrup, Sauce), Fertilizer Manufacturing Industry, Flour, Flour, Sesame Manufacturing, Design & Fashion Wear, Starch, Glucose, Dextrose Manufacturing Industry, Ice Cream Factory, Powdered Spice Manufacturing Industry, Fragrant Rice Manufacturing, Pulses Processing, Jorda Manufacturing Industry, Coconut Oil Manufacturing Industry, Seeds Processing, rubber processing, leather industry, etc.

Small and Cottage Industries

Along with the improvement in people’s standard of living, the demand for small and cottage industries has increased many times, so to advance this industry, you can take easy loans:

Pottery, Blacksmithing, Block-Batik/Printing, Rural Sanitary Latrines, Weaving/Weaving, Wood/Steel Furniture Making, Silk Textile Manufacturing Industry, Agricultural Machinery Manufacturing, Candle/ Agarbati/ Rose Water/ Toothpaste/ Coil Manufacturing, Bamboo & Cane Industry, Parts Manufacturing Factories, Small Printing & Signboard Making, Leather Industry, Dried Fish Processing, Ice Mills, Nakshi Kantha Making, etc.

B. Service Sector business model

Nowadays service sector has become very important where small and medium entrepreneurs can raise business capital by taking loans: For salons/ laundry, beauty parlors/ herbal treatment, power tillers, computer services, photocopy services, TV/VCR/electrical equipment/mobile phone repair, Rural Vehicles (Rickshaws/Boats/Rickshaw-Vans), Sewing Machines, Light Engineering/ Car Repair Workshops, Diagnostic Centre/ Clinics/ Dentistry, Studios, Educational Services (Coaching Centre/ Kindergartens), Cable Operators, Power Distribution through Generators, Community Center, Amusement Park, Residential Hotel, Tourist Cottage, Solar Power, Cyber ​​Café, etc.

C. Commercial Sector business model

Entrepreneurs in the commercial sector generally take this loan for business expansion such as grocery/convenience stores, departmental stores, textile/ garment businesses, animal feed/ fish feed sale, purchase and sale of paddy/ farming/ other agricultural produce, fertilizer/ seed/ pesticide business. , Parts Store, Electrical Goods Sale, Electronics Goods Sale, Medicine Business, Dried Fish Business, Stone Quarrying & Sale, Sand Buying & Selling Business, Shoe Business, Crockery Goods Buying & Selling, Bangle Business, Hardware Business, Hotel/Restaurant Business, Sale of furniture, etc.

Credit Limit of Own Loan products

  • Maximum of Tk. 25 (Twenty-five) lac for a single person
  • Maximum of 50.00 (Fifty) lacs for a group of 05 (five) persons.

Death Risk Covering Scheme

Under the bank’s program, every borrower must be a member of the death risk insurance scheme

For insurance every member has to pay a non-refundable contribution based on the tenure of the loan at the following rates:

Loan TenureFee
Up to 01 (one) year0.40%
Above 01 (one) year but up to 02 (two) years0.50%
Above 02 (two) years0.60%

Loan eligibility

  • Should be a citizen of Bangladesh
  • The applicant must be a permanent resident of the branch jurisdiction. A permanent resident of the branch jurisdiction should be the guarantor of the loan if not a permanent resident
  • Applicant should be unemployed/semi-unemployed
  • Age should be at least 18 years to 45 years. However, the age limit is relaxable in the case of old borrowers of the Employment Bank
  • Must have project management skills
  • Should have training/ experience in project management
  • Must have creditworthiness and creditworthiness and good financial standing
  • The applicant will be considered ineligible if he is in default on a loan from any other Bank/Financial Institution/NGO or Private Institution.

Loan Tenure and Repayment Schedule

  • Generally: 2 years. However, considering the nature of the project, size, loan amount, potential profit, etc., the loan tenure can be from 1 year to a maximum of 5 years. Maximum 08 years in case of loan assistance program for the establishment of agricultural industries;
  • Loan repayment schedule is determined in monthly/quarterly/six-monthly/one-time installments based on marketing/marketing of products/services produced;
  • Early Settlement Fee (ESF) has to be paid as per rules in case of taking a loan by repaying the loan before maturity

Required documents for an applicant

Documents payable along with loan proposal (applicable to all cases):

  • Loan applicant’s address should be close to the lending branch of the bank located in the project area
  • Recent passport-size attested photographs of the applicant
  • Recent passport-size attested photographs of the guarantor
  • National ID card with attested photocopy of both sides of national identity card and guarantor (not mandatory)
  • Citizenship certificate issued by the local UP Chairman/ Municipal Mayor/Ward Councilor of the City Corporation along with a photocopy of the document/ purchase of the entrepreneur/ guarantor as permanent resident proof of the entrepreneur/guarantor
  • Attested photocopy of educational qualification certificate (if needed)
  • Attested photocopy of training/experience certificate (if needed)
  • (a) Consent letter of the guarantor if the owner of the project site is the guarantor

(b) copy of rental agreement/lease if rented/leased

  • 03 tenders from suppliers in case of machinery purchase loan (where applicable);
  • Copy of Trade License (if applicable) in case of loan above BDT 1,00,000
  • Copy of drug license (in case of drug store)
  • Income-expenditure statement of the project/institution.

Frequently Asked Questions (FAQs) on Karmasansthan Bank Own Loan

Q: What are the interest rates for Karmasansthan Bank Own Loan Program?

A: The interest rate for the Karmasansthan Bank Own Loan Program is 9.00%.

Q: What is the maximum loan amount for the Karmasansthan Bank Own Loan Program?

A: The maximum loan amount for the Karmasansthan Bank Own Loan Program is 50 lacs.

Q: What are the fees associated with the Karmasansthan Bank Own Loan Program?

A: The fees for the Karmasansthan Bank Own Loan Program are as follows:

  • Up to 2 lac BDT: 300
  • 2,00,001 lac to 4,00,000 lac BDT: 400
  • Above 4,00,000 lac BDT: 500

Customers should be aware of the following

Loans are not paid in cash. Payment is made through Order Check or A/C Payee Check only in the name of the Borrower the loan amount must be received from the servicing bank.

To know more details about this loan Click here

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