Probashi Kallyan Bank will move to BB for soft loan to help overseas job seekers

Talha Bin Habib The authorities of Probashi Kallyan Bank (Expatriates Welfare Bank) are set to move to the Bangladesh Bank (BB) for getting soft loans to provide financial support to the outbound migrant workers, a high official of the bank said Thursday. "We are working on it and would send proposal to the central bank soon through proper channel for getting soft loans with single digit interest rate for assisting the persons intend to go abroad with job," the official said. Earlier, the parliamentary standing committee on the ministry of finance (MoF) on February 13 last directed the bank authorities to take soft loans from the BB so that it could provide loans to the outbound migrant workers at nominal interest rate. The bank got the cabinet approval in 2010 and started its operation in 2011. The authorised capital of the bank, a specialised and the first ever full-fledged expatriates' welfare bank in the globe is Tk 5.0 billion while the paid-up capital is Tk 1.0 billion. The rest Tk 4.0 billion would be raised by offloading shares. The expatriate Bangladeshis will be the only shareholders of the bank. Before inception of the bank many expatriates went to different countries by spending around Tk 0.2 to 0.4 million in the past. And most of them collected the amount either by selling their valuable lands or other property. The bank provides loans to the out-bound Bangladeshi workers on production of their appointment letters at minimal interest rate. The condition is that the expatriates should send their remittance through the bank. They will be able to pay their loans in installments. At present there are 11 branches of the bank located in seven divisional cities and other important districts of the country to assist people to go abroad with jobs. The bank will open some new branches in different divisions of the country within the next two months following growing demand from the local people. The branches will be opened in Brahmanbaria, Cox's Bazar, Moulvibazar and Sirajganj by March following huge demand from the people of those localities who intend to go abroad with the financial support of the bank. The bank official said that so far over 1,400 people have received migration loan from the bank. He said on an average 4-5 persons receive migration loan every day from the bank located in the city and branch offices at 7 divisional towns. The official said the bank is now providing Tk 100,000 as migration cost for Singapore while for the Republic of Korea (ROK) Tk 70,000-Tk 80,000 and for the Middle East countries especially for Dubai Tk 80,000. The loan of the bank is collateral-free. The loan seekers must have a personal guarantor who may be his/her family member or a respectable person in their locality. The recovery rate of loans of the bank is over 96 per cent. The expatriates would be able to open accounts, deposit and withdraw money through online banking system after the start of commercial functioning of the bank. Asked about the probable interest rate for getting loan from the BB, the official said they prefer to get loan at three to four per cent interest.