There are 4 types of Loan as per BRPD Circular-14 dated 23/09/2012.

They are:

(a) Continuous Loan

(b) Demand Loan
(c) Fixed Term Loan
(d) Short Term Agriculture & Micro Loan (STAG&MI)
a. Continuous Loan

The Loan Accounts in which transactions may be allowed frequently within certain limit and have an
expiry date for full adjustment will be treated as Continuous Loan. Examples are: CC, OD etc.

Two key indicators:

1. Transactions may be allowed frequently within certain limit.

2. Have an expiry date for full adjustment.
b. Demand Loan:
The Loan that becomes repayable on demand by the bank will be treated as Demand Loan. Such loan
has no specific repayment schedule. So if any contingent or any other liabilities are turned to forced
Loans (i.e. without any prior approval as regular Loan) those too will be treated as Demand Loans. Such
as: Forced PAD (Forced Loan against imported merchandise), Foreign Bill Purchased and Inland Bill
Purchased etc.

C. Fixed Term Loan:

The Loans which are repayable within a specific time period under a specific repayment schedule will
be treated as Fixed Term Loan. Classification rule for Fixed Term Loan is different depending on its
limit ( upto 10 lac and beyond 10 lac).
d. Short Term Agriculture & Micro Credit:
Short-term Agricultural Loan will include the short-term Loans as listed under the Annual Credit
Programe issued by the Agricultural Credit Department (ACD) of Bangladesh Bank. Loan in the
agricultural sector repayable within 12 (twelve) months will also be included herein. Short-term Micro-
Loan will include any micro-Loan not exceeding an amount determined by Bangladesh Bank from time
to time and repayable within 12 (twelve) months.
However, loans and advances can be classified in other ways also as follows:
 Short term Loan- If the tenure of the loan is not more than one year
 Long term Loan- If the tenure of the loan is more than one year
 Funded- If loan is provided through fund
 Non-Funded – If the loan is not provided through fund
 Secured- If the loan is backed by security
 Un-secured- If the loan is not backed by any security
 Domestic currency loan-If the loan is obtained in domestic currency
 Foreign currency loan-If the loan is obtained in foreign currency
 Local loan- If the loan is obtained in local currency
 External Loan or foreign loan-If the loan is obtained from abroad.
 Bill Purchase- Advance against bill prior to the realization of value from the ultimate importer
or buyer or purchaser. Here interest is charged for the period of financing. Usually sight bills are
purchased.
 Bill discounting- Advance against usance bill after deducting a portion which is called discount.
Here discount represents the interest on the advance from the date of purchase of the bill until it
is due for payment.
 Export Finance (suppose packing credit- working capital loan to manufacture/procure goods
before execution of shipment or delivery).
 Import Finance ( PAD, LTR, LIM, EDF)
 Pre-shipment Credit- Credit provided before shipment
 Post Shipment- Credit provided after shipment
 Operating lease- Short term lease wherein the lessee gets the right to use the property for short
period against rent and the ownership remains with the lessor.
 Financing Lease-The lessee gets the right to use the property for a long time and the end of the
lease term becomes the owner of the property.
 SME- Loan: Loan provided to small and medium enterprises. In small industries maximum
grantable loan amount is Tk 20 cr for manufacturing and 5 cr for service sector. In case of medium
scale enterprise grantable loan amount is Tk. 75 cr for manufacturing sector while 50 cr is for
service sector.
 Consumer finance or personal loan-Basically loan to individuals like credit card, education loan,
car loan, home loan, loan for purchase of home appliances, etc.
 Floating rate loan- Interest rate is variable or linked to any other bench mark rate like LIBOR
 Fixed rate loan- Interest rate is fixed.