SME Foundation announces Tk 440 crore loan for MSMEs

The SME Foundation has taken an initiative to disburse over Tk 440 crore in loans to micro, small and medium entrepreneurs (MSMEs). Information and Broadcasting Adviser Dr Zahed Ur Rahman announced this during the weekly briefing at the Secretariat on Tuesday, adding that entrepreneurs will receive loans at 8 and 9 percent interest under two separate programmes.

Under the Credit Wholesaling programme from the Revolving Fund, approximately Tk 295 crore will be disbursed. An entrepreneur can take a minimum of Tk 1 lakh and a maximum of Tk 25 lakh under this programme, with the interest rate set at 8 percent. The SME Foundation has signed agreements with 15 banks and financial institutions for this purpose.

Additionally, under a separate agreement with the Bangladesh Infrastructure Finance Fund Limited (BIFFL) with JICA support, entrepreneurs in the agro-based industry and food processing sectors will receive Tk 145 crore at 9 percent interest. Entrepreneurs can take up to Tk 1 crore under this programme.

No collateral is required for loans up to Tk 10 lakh. The maximum loan repayment period is four years. Borrowers can repay in 48 instalments with a maximum grace period of six months based on the customer-bank relationship. Of the total loan amount, 25 percent will be reserved for women entrepreneurs and 20 percent for SME cluster entrepreneurs. Additionally, at least 60 percent of the total loans must be disbursed to the production sector.

Priority will be given to export-oriented and import-substitute product manufacturing, ICT and technology-driven ventures, women entrepreneurs, entrepreneurs from disadvantaged regions, persons with disabilities and third-gender entrepreneurs, green enterprises in climate-vulnerable areas, and returning expatriates. However, grocery shops, medicine and hardware sales, and environmentally polluting businesses will not be covered under this loan facility.