Eastern Bank launches new loan product
Wednesday, 12 March 2008
FE Report
Eastern Bank Limited, a private bank, has launched a new loan product aiming to provide finance to Bangladeshi holiday makers travelling abroad.
Called EBL TraveLoan, the bank's credit facility will be provided in two categories -- secured and unsecured -- to enable intending travelers to defray their travel-related costs.
"It's a product to make overseas travel by resident Bangladeshis simpler," the bank's chief executive officer Ali Reza Iftekhar said Tuesday.
"The people, belonging mainly to middle-income groups, want to travel abroad … Usually they are to wait for even years to save money needed to go on a holiday abroad. Our aim is to fill that vacuum by catering to the financing needs on simple and flexible terms," Iftekhar told a press conference, organised to launch the programme, at a city hotel.
Tourism experts say an estimated 150,000 Bangladeshis go abroad annually on family vacation. But higher costs associated with overseas travel make it difficult for middle-income and fixed-income groups to bear the expenses, making it an emerging area for banks and lenders.
Currently, HSBC, a foreign bank, and Prime Bank, a local private bank, are offering travel loans.
Officials said Eastern Bank will be the third bank to offer such a product designed to meet the financing needs of intending travellers.
The bank's chief executive said his bank would not only extend loans, but also arrange specially-tailored tour package at cheaper rate for the borrowers, partnering with tour operators and travel agencies.
"We'll also establish linkage with foreign tourism boards and travel agencies to ensure affordable travel packages for the potential clients," he told reporters.
Mamoon Mahmood Shah, head of consumer banking, said the borrowers will get 50 per cent waiver on EBL dual currency credit card issuance fee from EBL other than the loan facility.
Eastern Bank Limited, a private bank, has launched a new loan product aiming to provide finance to Bangladeshi holiday makers travelling abroad.
Called EBL TraveLoan, the bank's credit facility will be provided in two categories -- secured and unsecured -- to enable intending travelers to defray their travel-related costs.
"It's a product to make overseas travel by resident Bangladeshis simpler," the bank's chief executive officer Ali Reza Iftekhar said Tuesday.
"The people, belonging mainly to middle-income groups, want to travel abroad … Usually they are to wait for even years to save money needed to go on a holiday abroad. Our aim is to fill that vacuum by catering to the financing needs on simple and flexible terms," Iftekhar told a press conference, organised to launch the programme, at a city hotel.
Tourism experts say an estimated 150,000 Bangladeshis go abroad annually on family vacation. But higher costs associated with overseas travel make it difficult for middle-income and fixed-income groups to bear the expenses, making it an emerging area for banks and lenders.
Currently, HSBC, a foreign bank, and Prime Bank, a local private bank, are offering travel loans.
Officials said Eastern Bank will be the third bank to offer such a product designed to meet the financing needs of intending travellers.
The bank's chief executive said his bank would not only extend loans, but also arrange specially-tailored tour package at cheaper rate for the borrowers, partnering with tour operators and travel agencies.
"We'll also establish linkage with foreign tourism boards and travel agencies to ensure affordable travel packages for the potential clients," he told reporters.
Mamoon Mahmood Shah, head of consumer banking, said the borrowers will get 50 per cent waiver on EBL dual currency credit card issuance fee from EBL other than the loan facility.