Farhan Israq Ahmed

Bank Asia Ltd.

Weekly Journal 10
111 0440 030
Duration: 22/03/2015 to 26/03/2015
Bus 498
Faculty Mentor: Mr. Sheikh Mohammad Rabby (RBY)

This week I was shifted to the credit department. This week I was mostly exposed to
consumer finance products of Bank Asia Ltd. The most popular ones are consumer
durable loan, unsecured personal loan, auto loan and house finance.
Consumer Durable Loan is for the purpose of goods for personal or family use like
electronics or furniture etc. The age limit is from twenty five years old to fifty seven
years. The loan size can be from Tk. 50000 to Tk. 500000. The loan to price ratio is
30% of the total cost item. The applicant must have 4 years of business experience
or 3 years in service. The interest rate is 18%. The tenure of the loan is from 6
months to 48 months. The processing fee is 1% or Tk. 1000 whichever is higher. The
penalty on overdue payment is 2%. The applicants must have photo identification
like passport driving license, utility bill, trade license or salary certificate, bank
statement of 6 months TIN and guarantor, price quotation personal net worth
statement along with others.
Auto loan is for the purchasing Brand new motor vehicle. The applicant must be 25
to 65 years old. Loan size can be from Tk. 300000 to Tk. 2000000. The financing
can be up to 30%. The applicant must have 3 years of business experience or
service record. The interest rate is 17%. The tenure can be up to 72 months. Loan
processing fee is 1% of loan or Tk. 5000 whichever is higher. The penalty on
overdue payment is 2%. The applicant requirement is same as before like price
quotation of car bank statement TIN certificate passport etc.
House finance is for the purchase of House only and not land. It can be extension of
existing house or construction of new house or maybe purchase of flat. Loan size
can be from Tk. 500000 to Tk. 7500000. Financing can go up to 70% of the total
cost. Interest rate is 17%. The tenure can be maximum of 15 years. Loan processing
fee is 0.5% of loan amount of Tk. 5000 whichever is higher. Penalty of overdue of
payment is 2% of installment. Collateral or security and legal documents are
needed such as NID, passport guarantor and applicant photo, bank statement, TIN
and other documents related to land property. The flat or land related documents
required are agreement of landlord and developer, approval by RAJUK, copies of
deeds along with others.
Unsecured personal loan can vary from education to marriage to any other legal
purposes. Age limit of applicant can be from 25 to 57 years old. The amount of loan
can be from Tk. 25000 to Tk. 1000000. The applicant must have 3 years of stable
record of service in any reputed organization. The tenure can be from 12 months to
48 months. The processing fees is 1%of total loan amount. The risk and reward fund
is 1% of total loan and the overdue on payment is 2% on installment amount. Other
charges are levied upon CIB charge and Stamp charge. The supporting documents
needed are passport utility bill, bank statement photograph, price quotation etc.
There are some criteria and parameters upon which an applicant and his ability is
analyzed and then the loan is given. Criteria are occupation, education, length of

Farhan Israq Ahmed

Bank Asia Ltd.
Weekly Journal 10
111 0440 030
Duration: 22/03/2015 to 26/03/2015
Bus 498
Faculty Mentor: Mr. Sheikh Mohammad Rabby (RBY)

service or business, age, housing status, average A/c balance, tax payment and
spouse occupation and others. Debt Burden ratio is also calculated if the debt is
33% of its loan then its acceptable. Upon these criteria a score of 27 and above the
loan is provided.