It is a common practise for private sector company to secure funds from external sources such as foreign loans. According to a recent study by Bangladesh Bank, private sector companies resort to foreign loans due to their low interest rates and low capital base of domestic banks.
Before borrowing from a foreign bank, the private company in Bangladesh needs approval from the Scrutinity Committee of the Board of Investment.
1. Duly filled in prescribed application form
2. Board’s resolution for the proposed foreign loan
3. Latest resgistration from BIDA
4. Loan Agreement between the parties
5. Credentials of the sponsors or directors
6. Duly filled in CIB Inquiry form 1&2 and undertaking from its Sponsors or Directors.
7. CIB Certificate of the company and its sponsors
8. Track record of past foreign loans/deferred payment (if available)
9. Audited Balance Sheet of previous year
10. Utilization Certificate from nomited Bank
11. Up-to-date credit rating report of the company
12. Up-to-date financial analysis
13. Up-to-date details Feasibility report of the proposed project
14. Form-X, Form-XII and Form-XV from RJSC&F
15. Certificate of Incorporation of commencement
16. Memorandum & Articles of Association
The applicant is required to submit the prescribed applicaton form together with above listed supporting documents. For final approval, a fully documented proposal needs to be presented before the Scrunity Committee governed by Governor of the Bangladesh bank. The applicant shall get clearance based on the recommendation of the Committee and pay the notimated fee into the designated bank and receive money receipt from BIDA. Then, a letter shall be issued from BIDA if the applicant receives approval.
Estimated processing time for approval of foreign loan is thirty (30) days.
Ranges from BDT 5000 to 1 Lac BDT depending on the amount of loan.