Banks get warm responses

Swhan Chowdhury, who runs partially export-oriented Capital Cap House in Old Dhaka, is keen to expand his dairy farm in Munshiganj. He spoke to some banks for funds and found the interest rate to be too high.

Chowdhury took a chance and came to the Bank Fair 2015, hosted by Bangladesh Bank at the Bangla Academy premises.

He mainly sought information on finance options, with hopes that bankers, who are financial planners and consultants, would help make his dairy farm a success.

At the fair, a bank official offered Chowdhury loans with a 13 percent interest rate a year and the loan amount would range between Tk 5 lakh and Tk 10 crore.

Chowdhury said loans from another bank carried a 10 percent interest rate; the banker asked him to visit his bank for further discussion.

Zubair Hossain, who is studying at Dhaka University, visited the fair in search of education loans as he plans to apply for higher education abroad.

This is how the banking fair has attracted people from all walks of life. Visitors can get instant information from one bank and compare it with offers from 55 other banks under one umbrella.

Over 80 exhibitors -- banks, non-bank financial institutions and mobile banking services providers -- gathered at the fair to provide information on loans, deposits and services.

The BB led from the front line, exhibiting its activities -- from low-cost loans to small and medium enterprises and farmers to innovative tech-based services.

The fair is also hosting seminars, personal consultation and financial education, to let people know about banking services in Bangladesh. Prime Bank has attended the fair with a wide array of its products. Some are innovative ones, an official said, citing an example of a deposit product named 'Monarch'.

If a customer opens an account with Tk 20 lakh, he or she can be a monarch account holder. Their family members will also get complimentary premium banking membership, access to premium banking lounges and reduced pricing on banking services.

Mutual Trust Bank has been exhibiting a loan product named 'MTB Light Engineering'. It is a revolving loan, meaning that the fund can be withdrawn, repaid, and redrawn again in any manner and as many times as the borrower wants, until the arrangement expires. MTB also offers revolving loans for other SMEs to help them meet their working capital requirements.

MTB also offers separate loans for women entrepreneurs for SMEs with a single-digit interest rate. The loan is pre-financed by SME Foundation.

“Most people want to know about loan products and its interest rates. Also, there are some visitors, mostly elderly, who want to know about deposit rates,” said an official of Prime Bank at the fair.

bKash, the leading mobile banking service provider, has been displaying its services, including educating visitors on opening a bKash account and anti-money laundering measures.

bKash also brought along two of their mobile banking users -- a rickshaw puller and a garment worker -- to share their experiences.

Delwar Hossain, 35, who pulls a rickshaw in Dhaka, has been sending money through bKash for the last year and a half. “It is easier and cheaper to send money through bKash. It costs only Tk 18.5 to send Tk 1,000.”

Similarly, Mukta, 24, a garment worker in Banani, has been using bKash to send money to her mother and in-laws for the last six months.

Biru Paksha Paul, chief economist of Bangladesh Bank and the fair coordinator, said: “It's a huge success. Responses are overwhelming.”

The move will strengthen financial inclusion and educate people on financial products and services, according to Paul.