Visitors \\\'not happy\\\' with banks\\\' high lending rates

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Siddique Islam | Published: November 27, 2015 00:00:00 | Updated: November 26, 2015 22:18:20

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Kamrul Hasan, who has obtained a Masters Degree in Marketing from the United Kingdom and has been engaged in businesses since 2002, is interested to expand his business with bank financing.
He was seen collecting information of loan at a reasonable interest rate from different commercial banks at the Banking Fair Bangladesh 2015 on Thursday.
But he was not satisfied with their offered interest rates on lending, particularly the small and medium enterprises (SMEs).
Most of the banks are offering around 7.0 per cent interest rate on fixed deposit, while charging between 12 per cent 20 per cent on lending, he said.
"I can't understand how to make business viable with such higher rates of interest on lending," he told the FE.
Like Mr. Kamrul some other entrepreneurs were seen at the fair, who were interested to avail bank loans at lower interest rates for expansion of their businesses.
Talking to the FE, a senior official of a leading private commercial bank (PCB) said interest rates on lending are maintaining a declining trend in the recent months.
"We expect that the trend will continue in the coming months, if lower credit demand persists," the banker explained.
At the fair the banks are showcasing different products and services to bring more unbanked people into banking network. The bankers said most of the visitors are collecting information on different types of fixed deposits and pension schemes for getting maximum return on their deposits.
"We're highlighting different products and services to boost the ongoing financial inclusion campaign across the country," Munshi Abu Zakaria, vice-president of National Bank Limited (NBL), told the FE on the fair premises.
He also said NBL is emphasising SME and agriculture credits to bring more un-banked people into the banking network.
Like NBL, EXIM Bank Limited is also highlighting SME and farm loans at the fair in line with the central bank's suggestion.
Mohammad Mahtab Ali, senior principal officer of EXIM Bank, said: "Our bank is always focusing on SME and agriculture sectors for minimising risk."
Rupali Bank Limited is encouraging marginal farmers through offering soft loans for cultivating various import-substitute crops, like - pulses, oil-seeds and spices.
Talking to the FE, Kaniz Fatema, assistant general manager of Rupali Bank, said: "We're offering such loans at 4.0 per cent interest rate in line with the government's directives."
The government provides subsidy to the banks at 6.0 per cent interest rate, so that they can get 10 per cent interest in total after disbursing loan to the farmers at 4.0 per cent, she added.
IFIC Bank Limited is focusing on home loan, and claimed that the interest rate of their loan is lower than home loans of other banks.
The interest rate on home loan came down to 11.75 per cent recently from 11.95 per cent earlier to attract more clients, according to A S M Fahad Hosain, sales and marketing officer of IFIC Bank.
Mr. Hosain also said IFIC Bank has disbursed around Tk 4.0 billion as home loan so far this year.
"Our home loan is for credit-worthy individuals, who wish to buy new or used apartment, flat and construct building."
Under the home loan scheme, the bank will disburse maximum Tk 12 million to a client with an interest rate of 11.75 per cent. The repayment tenure of the loan is maximum 25 years.
Bangladesh Bank Governor Dr Atiur Rahman inaugurated the five-day banking fair on Bangla Academy premises in the capital on Tuesday to build a banking nation through boosting the ongoing financial inclusion campaign across the country.
    siddique.islam@gmail.com