SME Foundation to give out loans at 6pc interest rate
FE REPORT | Thursday, 13 June 2024
The SME Foundation will provide another Tk 4.5 billion in loans to small and medium-sized enterprises (SMEs) from its 'Revolving Fund' at an interest of 6.0 per cent, aiming to help expand their businesses.
The entrepreneurs can avail loans ranging between Tk 100,000 and 2.5 million under easy terms while the ceiling is Tk 5.0 million for the purchase of capital machinery.
To this effect, the SME Foundation has inked deals with 23 banks and non-bank financial institutions at a ceremony held in a city hotel on Tuesday evening, a statement said.
SMEF Managing Director (additional charge) Salahuddin Mahmud and the chief executives of 19 partner banks and 4 financial institutions signed the deals.
The SMEF Chairman Masudur Rahman presided over the ceremony attended by secretary to the Ministry of Industries Zakia Sultana and Secretary to the Financial Institutions Department Abdur Rahman Khan as special guests.
The 'Revolving Fund' was created under the stimulus package announced by Prime Minister Sheikh Hasina to recover the losses caused by the COVID pandemic.
Entrepreneurs working in SME clusters, export oriented as well as import-alternative good manufacturers, ICT businesses, marginalised and people with special needs, and entrepreneurs recommended by different public and private organisations will be eligible for the loans.
So far, the SME Foundation has distributed loans of about Tk 7.16 billion to 8,286 entrepreneurs in three rounds of different schemes.