• Saturday, Jul 31, 2021
  • Last Update : 10:29 am

SME Foundation to provide 300C in loans to entrepreneurs

  • Published at 08:46 pm April 27th, 2021
SME weaving loom
Syed Zakir Hossain/Dhaka Tribune

Those who did not receive soft loans last year will get priority

SME Foundation will provide loans of Tk300 crore to the cottage, micro, small and medium enterprises (CMSMEs) under the government's second phase incentive package for expediting Bangladesh's economic recovery amid the Covid-19 pandemic.

The foundation, in a statement issued on Tuesday, said that they will provide Tk100 crore of this in the current fiscal year and another Tk200 crore in the next fiscal year 2021-22.

In this regard, the SME Foundation has already taken initiatives to disburse loans through agreements with 11 banks and non-bank financial institutions, said the statement.

SME Foundation has signed agreements with BRAC Bank, Premier Bank, Mutual Trust Bank, Bank Asia, Southeast Bank, Dhaka Bank, Dutch-Bangla Bank, Prime Bank, Basic Bank, IDLC Finance and LankaBangla Finance to disburse the loans.

As per the terms of the agreement, these banks and financial institutions will provide loans to entrepreneur clusters of almost all the districts of the country as well as women entrepreneurs who are recommended by SME Foundation, various governmental NGOs and associations, trade body and group listed entrepreneurs across the country.

Rural and marginal entrepreneurs who have not availed loans under the package from last year will be eligible and prioritized this year.

Third gender entrepreneurs will also get priority for availing the stimulus.

Earlier on March 21, SME Foundation Chairman Md Masudur Rahman approved the policy and guidelines for disbursement of this loan program during their 120th meeting of the board of directors.

Entrepreneurs will get loans at 4% interest under the incentive package. At the consumer level, the loan amount will be from a minimum of Tk1 lakh to a maximum of Tk75 lakh.

The loan can be repaid in a maximum of 24 equal monthly installments based on banker-customer relationship. After submitting the “complete loan application” along with the required documents to the bank, the concerned bank will take the initiative to disburse the loan in favor of the customer.

In general, loans will be disbursed in favour of single and joint ventures.

However, group-based loans can be disbursed in favor of a maximum of 5 entrepreneurs on the basis of banker-customer relationship and consensus in order to bring marginal small, especially women-entrepreneurs under the loan.

The SME Foundation, in consultation with partner banks and financial institutions, will appoint focal officers in one or more branches that are convenient for entrepreneurs.

Entrepreneurs will contact the focal officer, who will coordinate with the SME Foundation, the bank's head office and branches and entrepreneurs.

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