MDB Green Loan

DESCRIPTION

MDB Green Loan is a structured and an environment friendly lending product with a view to enabling different MSMEs, farmers, individuals, organizations to purchase Green and Renewable Energy Technologies (RETs) to reduce the dependence of traditional energy as well as to meet up country's electricity and gas demand. Green Energy is a potential and growing sector of Bangladesh which creates an ample opportunity of lending here and making bank's profitability. To serve this sector Green loan scheme been designed.

Title Details
Target customers : All kinds of customers; users, manufacturers, traders, service providers and promoters of Green Energy Technologies (GETs), which fall under micro, cottage, small & medium enterprises, emerging corporates, households, individual farmers, agri farms, NGOs, Co-operative Societies, institutions and other special organizations engaged in promoting the green energy sector.
Objectives :

This product will meet up funding requirement of the prospective customers and contribute to achieve the following objectives:

  • Tap the loan market of the flourishing green energy sector
  • To improve human living conditions and achieve energy efficiency
  • To create green jobs
  • To promote the sustainable energy sector
  • To contribute the climate change of the bank
  • To discharge CSR role
  • Minimize risk through portfolio diversification
  • To achieve profitability of the bank
  • Branding of the bank
Preferred sectors as per Bangladesh Bank re-finance circular for green financing :
  • Solar PV (photovoltaic) for Home System & Water Pump (for Irrigation and drinking water)
  • Solar PV Assembly Plant
  • Solar Mini Grid
  • Bio-gas plant
  • Effluent Treatment Plant (ETP)
  • Environment-Friendly Brick Kilns (Zig Zag, Hybrid Hoffman kilns/HHK, Tunnel Brick Kiln, Compressed Block Brick, Concrete Block Brick, Non-fire Block Brick)
  • Vermicompost Production
  • LED Lights Assembly Plant
  • Auto Sensor Power Switch Assembly Plant
  • Hydropower Plant
  • PET( polyethylene terephthalate) Bottle Reprocessing
  • Solar Battery Reprocessing
  • Waste Management Plant
  • Energy Efficiency Technology
  • Any other feasible green plant/projects/products within/beyond the Bangladesh Bank circular may also to be encouraged.
Loan category :
  • MDB Green Loan (TL)
  • MDB Green Loan (RL)
Purpose of loan : To foster development of green energy sector with bank finance for working capital and fixed asset financing including civil construction for project building/warehouse/shed etc. Working capital may be extended in the form of RL and TL while fixed assets/construction of project building/warehouse/shed shall be financed in the form of TL. Ultimate objective is to meet up the country's need for electricity and gas as well as to protect the climate by reducing carbon emission.
Eligibility criteria :
  • Tenure Of business: Both the existing and startup businesses having potentiality and capacity to repay bank loan;
  • Nature of business: Users, manufacturers, promoters, contractors, service providers and related trading enterprises RETs;
  • Legal form of business: Proprietorship/partnership/private limited company/ organizations having valid registrations/licenses. Individual users are eligible for the loan;
  • Nationality: Bangladeshi by birth;
  • Entrepreneurs age: 21-60 years (applicable for sole proprietorship and partnership firms);
  • Owners/entrepreneurs experience: 2 years of experience in any kind of business. For startup business the entrepreneur/s should have practical experience/training in the relevant area. if the client is user, there needs no experience;
  • Owners/entrepreneurs capacity: To repay loan from secondary/tertiary source in addition to primary source of income;
  • Women entrepreneurship: More than 50% share owned by women entrepreneurls (for partnership/private limited company)
Account turnover
: Bank account turnover will be encouraged.
Availability
: Loans under this product will be available across the country through MDB Green Loan various branches/sales outlets of MDB.
Eligibility for re-finance : Applicable as per Bangladesh Bank rule or agreement with any other re-financing or pre-financing agency/s.
Loan size
: Up to BDT 25.00 crore including working capital and fixed asset finance. Loan size may be extended based on business viability and repayment capacity of the borrower.

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