SME Foundation to disburse over Tk 2.0b from next fiscal
Mahmuda Shaolin | Friday, 20 June 2008
The SME Foundation will disburse over Tk 2.0 billion from the beginning of next fiscal for development of the country's Small and Medium enterprises (SMEs).
"We will start disbursing SME loans from next month," SME foundation chief Mohammad Ayub Miah told the FE Thursday.
The state owned foundation will disburse loans among small and medium enterprises at below 10 per cent rate of interest.
"We have decided to disburse first ever SME loans to the SME entrepreneurs at below 10 per cent interest to help development the sector," said Mr. Miah who is also secretary in-charge of Ministry of Water Resources.
Of the total amount of loans to be disbursed in the 2008-09 fiscal, he said small entrepreneurs will get 80 per cent while the rest 20 per cent will be given to the medium entrepreneurs.
"There will be priority for women entrepreneurs," he added.
Initially, the programme styled 'SME Credit Holding Programme' will start to disburse loans through banks.
Miah has expressed the hope that the programme will help develop and acquire technologies by data based development for wealth creation and poverty alleviation.
Appreciating the foundation's easy loan process, Rakia Afzal Rahman, former advisor of caretaker government and president of the Bangladesh Federation of Women Entrepreneurs (BFWE), said it will help strengthen the entrepreneurs' access to credit and support services.
The programme would also contribute to sustainable economic growth and poverty reduction, she added.
The government received a $50 million grant from the Asian Development Bank (ADB) to support the SME sector in 2004, $30 million of which has been sanctioned as SME loans and $5 million for the entrepreneurs' training.
Earlier, Bangladesh Bank managed the grant. Recently, the government has decided to handover it to the SME Foundation and the fund is titled as Small Enterprise Fund (SEF).
Under the programme, the foundation also takes initiative to give training to the country's SME entrepreneurs. Efforts to accelerate the retention and promotion of women entrepreneurs should be strengthened, SME foundation chief said.
The foundation will arrange regional campaign conference for SME entrepreneurs in Dhaka, Chittagoan and Rajshahi very shortly, Ayub Miah added.
It will also set-up a SME advisory service centre--'SME Business Support Service'--to operate the SME enterprises and provide information to the SME entrepreneurs for making new SMEs.
A 'SME Product Display Centre' will be set up to display SMEs product, which will help introduce and advertise their various products.
Founded in 2006, SME Foundation is going to award at lest 20 women through a programme--SME Women Entrepreneurs Award-- in different categories within the next three months, he further informed.
"We will start disbursing SME loans from next month," SME foundation chief Mohammad Ayub Miah told the FE Thursday.
The state owned foundation will disburse loans among small and medium enterprises at below 10 per cent rate of interest.
"We have decided to disburse first ever SME loans to the SME entrepreneurs at below 10 per cent interest to help development the sector," said Mr. Miah who is also secretary in-charge of Ministry of Water Resources.
Of the total amount of loans to be disbursed in the 2008-09 fiscal, he said small entrepreneurs will get 80 per cent while the rest 20 per cent will be given to the medium entrepreneurs.
"There will be priority for women entrepreneurs," he added.
Initially, the programme styled 'SME Credit Holding Programme' will start to disburse loans through banks.
Miah has expressed the hope that the programme will help develop and acquire technologies by data based development for wealth creation and poverty alleviation.
Appreciating the foundation's easy loan process, Rakia Afzal Rahman, former advisor of caretaker government and president of the Bangladesh Federation of Women Entrepreneurs (BFWE), said it will help strengthen the entrepreneurs' access to credit and support services.
The programme would also contribute to sustainable economic growth and poverty reduction, she added.
The government received a $50 million grant from the Asian Development Bank (ADB) to support the SME sector in 2004, $30 million of which has been sanctioned as SME loans and $5 million for the entrepreneurs' training.
Earlier, Bangladesh Bank managed the grant. Recently, the government has decided to handover it to the SME Foundation and the fund is titled as Small Enterprise Fund (SEF).
Under the programme, the foundation also takes initiative to give training to the country's SME entrepreneurs. Efforts to accelerate the retention and promotion of women entrepreneurs should be strengthened, SME foundation chief said.
The foundation will arrange regional campaign conference for SME entrepreneurs in Dhaka, Chittagoan and Rajshahi very shortly, Ayub Miah added.
It will also set-up a SME advisory service centre--'SME Business Support Service'--to operate the SME enterprises and provide information to the SME entrepreneurs for making new SMEs.
A 'SME Product Display Centre' will be set up to display SMEs product, which will help introduce and advertise their various products.
Founded in 2006, SME Foundation is going to award at lest 20 women through a programme--SME Women Entrepreneurs Award-- in different categories within the next three months, he further informed.