Eligibility For Foreign Loan
How to Obtain Eligibility for Foreign Loan in Bangladesh
It is common for private sector companies in Bangladesh to secure funds from external sources, such as foreign loans. According to a recent study by Bangladesh Bank, private companies often resort to foreign loans due to their lower interest rates compared to the limited capital base of domestic banks.
Before borrowing from a foreign bank, a private company in Bangladesh must obtain approval from the Scrutiny Committee of the Board of Investment (BOI).
Documents Required:
- Duly filled prescribed application form
- Board resolution for the proposed foreign loan
- Latest registrations from BIDA
- Loan agreement between the parties
- Credentials of the sponsors or directors
- Duly filled CIB Inquiry forms 1 & 2 and an undertaking from its sponsors or directors
- CIB Certificate of the company and its sponsors
- Track record of past foreign loans/deferred payments (if available)
- Audited balance sheet of the previous year
- Utilization certificate from the nominated bank
- Up-to-date credit rating report of the company
- Up-to-date financial analysis
- Up-to-date details of the feasibility report for the proposed project
- Form-X, Form-XII, and Form-XV from RJSC & F
- Certificate of incorporation
- Memorandum & Articles of Association
Process:
The applicant must submit the prescribed application form along with the supporting documents listed above. For final approval, a fully documented proposal needs to be presented before the Scrutiny Committee governed by the Governor of Bangladesh Bank. The applicant will receive clearance based on the Committee's recommendation, pay the nominated fee into the designated bank, and receive a money receipt from BIDA. Following this, a letter of approval will be issued from BIDA.
