CMSME Financing

Mercantile Bank PLC (MBPLC) acknowledges Cottage, Micro, Small, and Medium Enterprises (CMSMEs) as a cornerstone of inclusive economic development- a priority sector for achieving sustainable growth in Bangladesh and a thrust sector that contributes significantly to the country’s GDP.

As per SMESPD Circular No. 01 dated March 17, 2025, issued by Bangladesh Bank, the loan determinant and loan ceiling for CMSMEs (Cottage, Micro, Small, and Medium Enterprises) are defined by the enterprise's classification. The circular specifies that the classification of an enterprise is determined by a combination of its fixed asset value, the number of employees, and in some cases, its annual turnover. The loan ceiling, or the maximum amount an enterprise can borrow, is directly tied to this classification.

Determinants of CMSME Classification

The classification of an enterprise is the primary determinant for the loan ceiling. If an enterprise falls into different tiers based on the criteria below, the higher tier will prevail.


Enterprise Type

Sub Sector

Fixed Asset Value
(excluding land & building)

Number of Employees

Annual Turnover
(for Service/Trading)

Non-Institutional/Marginal
Entrepreneurship

Manufacturing/
Service/Trading

Less than Tk. 5 lac

Maximum 10

N/A

Cottage

Manufacturing

Less than Tk. 10 lac

Maximum 15

N/A

Micro

Manufacturing

Tk. 10 lac to less than 75 lac

Maximum 25

N/A

 

Service

less than Tk. 10 lac

Maximum 15

N/A

 

Trading

Max. Tk. 15 lac

Maximum 10

Max. Tk. 2 cr.

Small

Manufacturing

Tk. 75 lac to less than 15 crore

26 to 120

N/A

 

Service

Tk. 10 lac to less than 2 crore

16 to 50

N/A

 

Trading

Tk. 15 lac to less than 2 crore

11 to 30

Tk. 2 Cr. to less than Tk. 20 cr.

Medium

Manufacturing

Tk. 15 crore to 50 crore

121 to 300

(RMG/Labour intensive  Max 1000)

N/A

 

Service

Tk. 2 crore to 30 crore

51 to 120

N/A

 

Trading

Tk. 2 crore to less than 15 crore

31 to 100

Tk. 20 Cr. to less than Tk. 50 cr.

CMSME Loan Ceilings

The maximum loan/investment limit is set based on the enterprise's category and sub-sector. The total funded loan/investment across all banks and financial institutions for a single enterprise cannot exceed these limits.


Enterprise Type

Manufacturing
(max. BDT)

Service
(max. BDT)

Trading
(max. BDT)

Informal/Marginal

5 lac

5 lac

5 lac

Cottage

20 lac

-

-

Micro

2 crore

50 lac

75 lac

Small

25 crore

8 crore

8 crore

Medium

100 crore

75 crore

10 crore

Aligned with the vision and guidelines of the Bangladesh Bank's CMSME master circular (SMESPD Circular No. 01, dated March 17, 2025), MBPLC is committed to fostering the development of this vital sector and dedicated to ensuring enhanced access to finance for all CMSME segments—including cottage, micro, small, and medium enterprises—as well as informal, marginal, and women-led enterprises. Our approach emphasizes need-based, inclusive and regionally balanced financial solutions to reduce dependency on informal sources and foster formal entrepreneurship by bridging the financing gap and empowering entrepreneurs to thrive, expand and contribute to a more resilient and sustainable national economy. Through a wide range of appropriately structured credit products and support services, MBPLC aims to empower entrepreneurs, reduce economic disparity and actively contribute to building a robust, diversified and resilient economy in accordance with national financial inclusion goals.

Loan/Investment Products


  • To make business expansion and procure capital machinery and other fixed assets of the business.
  • Loan Limit Tk 0.50 lac to Tk 10000.00 lac.
  • Collateral free Loan up to Tk 5.00 lac with the applicable conditions as per credit Policy of the Bank complying with the guideline of Bangladesh Bank.
  • Repayment period- 12 months to 84 months with the applicable conditions as per credit Policy.
  • Interest Rate: Prevailing Rate of interest as per schedule of the Bank/PPG
  • Age limit- 21 years to 70 years.
  • Minimum 2 years experience in the respective field of business.
  • The project must be financially, economically and commercially viable
  • Documentation procedure: Documentation will be completed as per existing Credit Policy of MBPLC.
  • To meet up working capital requirement of the business by maintaining sufficient stocks in trade.
  • Loan Limit Tk 0.50 lac to Tk 10000.00 lac.
  • Interest Rate: Prevailing Rate of interest as per schedule of the Bank/PPG
  • Repayment period- 12 months, which is renewable.
  • Age limit- 21 years to 70 years.
  • Minimum 2 years experience in the respective field of business.
  • The project must be financially, economically and commercially viable.
  • Documentation procedure: Documentation will be completed as per existing Credit Policy of MBPLC.
  • To meet up short term seasonal need of the business, seasonal cash flow fluctuations of the business.
  • Loan Limit Tk 0.50 lac to Tk 1000.00 lac.
  • Repayment period- Maximum 12 months.
  • Interest Rate: Prevailing Rate of interest as per schedule of the Bank/PPG
  • Age limit- 21 years to 70 years.
  • Minimum 2 years experience in the respective field of business.
  • The project must be financially, economically and commercially viable.
  • Documentation procedure: Documentation will be completed as per existing Credit Policy of MBPLC and or as per guideline of Bangladesh Bank.
  • To meet up working capital requirement, available for business expansion, procurement of capital machinery and other fixed assets for the Women Entrepreneurs.
  • Loan Limit [Tk 0.50 lac to Tk 100.00 lac @ 5.00% interest p.a. with the applicable conditions upto Small Enterprise and Tk.0.50 lac to Tk.10000.00 lac with Prevailing interest rate of the Bank for all CMSME customers with the applicable conditions]
  • Repayment period- 12 months to 84 months for Term Loan and 12 months for Continuous Loan, which is renewable.
  • Interest Rate: @ 5.00% interest p.a. with the applicable conditions upto Small Enterprise and Prevailing Rate of interest for all CMSME customers.
  • Age limit- 21 years to 70 years.
  • Minimum 2 years experience in the respective field of business.
  • The project must be financially, economically and commercially viable.
  • Documentation procedure: Documentation will be completed as per existing Credit Policy of MBPLC and or as per guideline of Bangladesh Bank.
  • Designed to ensure performance based borrower’s evaluation and facilitation where credit performance will get privilege over any other considerations.
  • Facility Mix- CC (Hypo) /OD and Time/Term Loan .
  • Loan Limit: Tk 50.00 lac to Tk 10000.00 lac.
  • Age limit- 21 years to 70 years
  • Interest Rate: Prevailing Rate of interest as per schedule of the Bank/PPG
  • Repayment period- 12 months to 84 months for Term Loan and 12 months for Continuous Loan, which is renewable but Time Loan for 12 months (Not renewable).
  • Documentation procedure: Documentation will be completed as per existing Credit Policy of MBPLC and or as per guideline of Bangladesh Bank.
  • Designed for foreign trade financing facility(ies) of the entrepreneurs in diversified sectors towards optimum utilization of their inherent entrepreneurship capacity.
  • Facility Matrix:
    • L/C (One off/Revolving) to import& procure permissible goods,
    • Term Loan/Hire Purchase/LTR for retirement of shipping documents under L/C,
    • Time Loan (One off/Revolving) to make payment of customers duty, VAT, Tax etc.
  • Limit: Min. Tk.0.50 lac to Tk 10000.00 lac (Funded & Non-funded taken together)
  • Age limit- 21 years to 70 years
  • Repayment period- 12 months to 84 months for Term Loan and 12 months for Continuous Loan, which is renewable but Time Loan for 12 months (Renewable/Not renewable).
  • Interest Rate: Prevailing Rate of interest as per schedule of the Bank/PPG
  • Documentation procedure: Documentation will be completed as per existing Credit Policy of MBPLC and or as per guideline of Bangladesh Bank.
  • Designed for receivable financing against goods or services sold/delivered on credit basis.
  • Limit: Transaction accommodation within the purview of the arrangement shall be made on case to case basis.
  • Maximum Limit: Maximum exposure on the particular client/ business shall not exceed Tk 5.00 crore under the factoring arrangement.
  • Retention Margin: 20% to 50% basing on the risk perception on the end beneficiary/customer of the client.
  • Facility Tenor: Over 30 days but not exceeding 90 days depending upon the business/ cash cycle of the particular borrowing concern.
  • Age limit- 21 years to 70 years
  • Interest Rate: Prevailing Rate of interest as per schedule of the Bank/PPG
  • Repayment period- 12 months to 84 months for Term Loan and 12 months for Continuous Loan, which is renewable but Time Loan for 12 months (Renewable/Not renewable).
  • Documentation procedure: Documentation will be completed as per existing Credit Policy of MBPLC and or as per guideline of Bangladesh Bank.
  • Dedicated for the young entrepreneur(s) with the specific business plan to materialize.
  • Nature of Business: Manufacturing, Service and Trading
  • Encouraging Sector for financing:
    • Light engineering,Dairy, Poultry, Fisheries, Agro-processing, IT related Software, Website development, Hardware, Security,Graphic Design, Animation, Information Database,Frozen Foods,Handicrafts, Embroidery, Mobile Engineering, Recycling industry/ Waste Management, Furniture, Local Garments, Backward linkage industries,
  • Purpose of the Loan: Providing seed capital for start -up business.
  • Loan Limit per instance: Minimum 0.50 lac – Maximum 50.00 lac
  • Facility Type (s): Funded by nature and preferably should be Term loan with specific repayment schedule
  • Tenure of the Term Loan:
    • Maximum 03 (three) years for working capital and
    • Maximum 05 (five) years subject to assessment of the requirement including moratorium/ grace period forfinancing fixed cost component/ acquisition of businessrelated asset or as per Credit Policy of MBPLC.
  • Age limit- 21 years to 35 years
  • Interest Rate: Prevailing Rate of interest as per schedule of the Bank/PPG
  • Documentation procedure: Documentation will be completed as per existing Credit Policy of MBPLC and or as per guideline of Bangladesh Bank.
  • Start-up dof new technology-based business/Industry.
  • Facility Mix- Term Loan/Working Capital
  • Loan Limit: Maximum Tk.8.00 crore with the applicable conditions as per Credit Policy and or guideline of SMESPD Circular no-02 dated July 09, 2025.
  • Age limit- Minimum 21 years
  • Repayment period- In Term Loan maximum of 8 years including grace period, In Working capital loan facility will be renewable up to a maximum of 08 years from the date of first loan disbursement. However, the loan/investment can be renewed after 08 years on the basis of banker-customer relationship at market based interest rate.
  • Interest Rate: 4% p.a. with the applicable conditions as per Credit Policy and or guideline of SMESPD Circular no-02 dated July 09, 2025.
  • Business Entity: Technology-based business or industrial enterprise established by one or more entrepreneurs or an organization established/managed by a domestic-foreign joint venture that is playing an active role in producing a product or providing a service that is highly potential, scalable and new and innovative. In addition, innovation of a new product/service/process/technology or development of an existing product/service/process/technology will also be considered as a start-up. However, any enterprise formed by restructuring or dividing an existing business will not be considered as a start-up.
  • Documentation procedure: Documentation will be completed as per existing Credit Policy of MBPLC and or guideline of SMESPD Circular no-02 dated July 09, 2025/ Bangladesh Bank.
  • Products/services should be related/similar or homogenous along with related products. Enterprises must be production or service units including forward and backward linkage industries/Organization consisting of minimum 30 entrepreneurs on Cottage , Micro, Small and Medium enterprises.
  • Adjoining geographical location: several villages, wards, unions and industrial estates.
  • Scattered within an area of 5 kilometer radius.
  • Cluster-based Women Entrepreneurs and special deprived/ unbanked entrepreneurs will get priority in availing loan/investment
  • Loan Limit& Tenor: Both term loan and working capital limit and Tenor can be provided as per the loan limit for CMSMEs defined in the SMESPD Circular No-02/2019 and or SMESPD Circular No-01   dated March 17, 2025 of Bangladesh Bank and with the applicable conditions as per Credit Policy of MBPLC and or guideline of Bangladesh Bank.
  • Age limit- 21 years to 70 years
  • Interest Rate: Interest rate will be applicable as per guidelines of Bangladesh Bank/Credit Policy of MBPLC from time to time.
  • Borrower will enjoy lower interest rate if he/she is financed under any specific/pre-finance/re-finance scheme. In such case, the interest rate will be determined according to the relevant scheme.
  • Target Customers: Agro/ food processing and Agro machinery manufacturing industry, Readymade garments industries, knitwear, design and decoration, ICT, Leather and Leather goods industries, Light engineering, Jute products industry, Plastic and other synthetic industry, Tourism industry, Home textile, Renewable energy (solar power), Automobile manufacturing and repairing industry,  Handlooms and handicrafts, Energy efficient appliances (LED, CFL bulb manufacturing)/ manufacture of Electronic equipment/ Electronic material development industry, Toy Industry, Cosmetics and Toiletries Industries, Furniture Industry, Mobile/Computer/ Television servicing, Jewelry Industry, Agar Industry and others Clusters recognized by SME Foundation, Other Stake Holders (if any), Identified clusters of MBPLC.
  • Documentation procedure: Documentation will be completed as per existing Credit Policy of MBPLC and or as per guideline of Bangladesh Bank.

Loan/Investment Application Form

Bangladesh Bank Refinance Schemes
(Bangladesh Bank Poster)

News and Event

Contact us

Head of SME Financing Division 

Head office (Annex)
Eunoos Trade Center, 
52-53 Dilkusha C/A, (Level-15), Dhaka-1000, 
Phone: 9514752-4, +8809678142100
Email: hod_smefd@mblbd.com