This page houses an English translation of the rules for Shohoz Shonchoy`s `Product 7`
Flyer:
Shohoz Shonchoy - helping you to build and use capital
SAVINGS
The simplest and cheapest way to build and use capital is to save, earn profit, and withdraw. Shohoz Shonchoy's 'Capital Account' helps you to do that.
After you open a Capital Account our Collectors call on you at your home or business - as often as daily if you like - to collect deposits or to give you withdrawals. You can deposit or withdraw in any sum at any time.
The Capital Account pays good profit on your savings, and profit is added to your account each quarter. The more you save, the higher the profit.
LOANS
You can take loans from Shohoz Shonchoy too. They're easy to use.
If they are secured against your own savings, they are extremely cheap.
You can at any time take a loan of up to 5,000 taka more than your Capital Account savings balance (For example, if your Capital Account savings balance is 8,000 taka you can take a loan of 13,000. Or if you have no savings yet, your maximum loan is 5,000 taka).
To help you build your own capital, 1,000 taka of every loan must be placed into your Capital Account savings. (Of course, you can put more into savings if you like).
Repaying your loan is easy. When you have a loan, our Collector will come every day. Pay what you like to her. There is no fixed repayment schedule, but loans must be fully repaid within one year.
While you hold a loan, you cannot withdraw savings if your Capital Account savings balance is smaller than your loan balance. (Of course, if you have more savings than loan, you can withdraw, as long as you keep an amount equal to your loan balance).
You pay monthly fees for your loan. When your loan balance is bigger than your Capital Account savings balance, monthly fees are 3% each month, based on the month-end balance. But when your loan balance drops to equal or less than your Capital Account savings balance the fee is only 1% per month. (Monthly fees are deducted from Capital Account savings: you also pay 10 taka a month as a collection service fee when you hold a loan).
The reduced monthly loan fee encourages you to grow your own capital. That's how Shohoz Shonchoy helps you!
Don't you think you should open an account today?
Rules:
Shohoz Shonchoy capital accounts
Opening an account: If you live or work in the area served by the Hrishipara Branch you may apply to open an account. Our Manager will inspect your business and tell you if you qualify for an account. You may open only one account.
To open your account, come to the Hrishipara Office with our Collector. Bring two copies of a photograph with you. You will be issued with a passbook. Tell us who your 'nominee' is - that person will receive your savings if you die. Pay 50 taka to open your account, and take a receipt from the Manager.
Depositing Savings: You may deposit savings at the Hrishipara Office during working hours, but it is easier to use our Collector who will call on you. You can deposit any amount you like with her. You are not obliged to deposit - it is entirely up to you.
For the first two weeks after you open your account, your Collector will call on you every day (except Friday). After that, you will tell her whether you want her to continue calling every day, or agree another visiting frequency, such as once every two days, twice a week, or weekly.
Earning profit on your savings: Savings earn profit at various rates depending on how much you have saved. This encourages you to build your own capital! Our present rates are:
For accounts with 20,000 taka or more, we pay 7% per year.
For accounts of 10,000 taka but less than 20,000, we pay 6% a year.
For account of 5,000 taka but less than 10,000, we pay 5% a year.
For accounts of 1,000 taka but less than 5,000, we pay 4% a year.
For accounts with less than 1,000 taka we pay 3% a year.
There is no minimum balance - all your savings earn profit every month (except the first month). The calculation is done monthly, and is based on the minimum balance during the month. The profit earned is added to your account on the 15th day of the month following the close of each quarter (that is, it will be paid into your account on April 15th, July 15th, October 15th and January 15th).
Withdrawing savings: If you have no Shohoz Shonchoy loan, you may withdraw any amount at any time. You may withdraw from the Collector when she calls provided she has enough cash with her: if not, she will ask you to accompany her to the Hrishipara Office, or she will bring you the cash the next day.
When you hold a Shohoz Shonchoy loan you may not withdraw savings until the loan balance is smaller than your savings balance. Once the loan balance is smaller than your savings balance, you may withdraw the excess amount from savings, or you may withdraw savings to pay back the loan in part or in full.
Taking Loans: You may take a loan at any time after you have opened your account. Loans are taken one at a time - you must repay one loan in full before you can take another. To take your loan come to the Hrishipara Office and have your account details and savings balance checked in the computer. Bring your passbook with you.
Loan size: Loans cannot exceed your savings balance by more than 5,000 taka. This means, for example, that if your savings stand at 7,000 taka, your loan cannot exceed 12,000 taka. It means that if you have no savings in your account, your loan cannot exceed 5,000 taka. You may always take less than the maximum if you wish.
Using your loan to build capital: 1,000 taka of every loan, without exception, must be placed immediately into your savings account. You may place more than 1,000 taka in your savings account if you wish. This rule helps you build your own capital: borrowing from Shohoz Shonchoy is a good way to get capital, but building your own capital is even better!
Repaying your loan: All loans are for a maximum of one year - you must repay in full, with fees, within one year.
When you have a loan our Collector will call on you every day. You repay your loan by giving your repayments to her. There is no fixed schedule. Give her what you like at any time. You may also visit the Hrishipara Office to repay. You may repay as quickly as you like. If you repay quickly you save money on monthly fees (see below) and you may take your next loan sooner.
Loan fees: While you hold your loan you pay monthly fees of 3% based on the loan balance at the end of the month. However, when your loan balance is the same as or smaller than your savings balance, the rate is only 1% a month.
The first fee is paid based on the loan balance at the end of the English month in which you took the loan, but only half the fee is payable if you took your loan in the second half of the month. No fees are payable for the month in which you complete paying your loan. (But if you repay your loan in full within the same month that you took it, we charge a fee of 3% of the loan amount).
You also pay 10 taka per month as a collection service fee while you hold a loan.
All fees are deducted automatically from your savings account on the first day of the following month. Our Collector will show the deduction in your passbook. Please make sure that at all times you have enough savings for this deduction to take place. Our Collector will remind you if deducting fees causes your loan balance to rise above your savings balance again.
Loan insurance: The loan fees include insurance: if you die we forgive any debt to Shohoz Shonchoy in excess of your savings.
Closing an account: You can close your account at any time. Come to the Hrishipara Office and hand in your passbook. If your savings exceed your loan balance, Shohoz Shonchoy will pay you the excess savings along with any profit. If your loan balance exceeds your savings balance you must pay off the loan. There are no account closing fees.