Prime Bank, ISPAB alliance on financing solutions to ISP companies

Prime Bank Limited and Internet Service Providers Association of Bangladesh (ISPAB) have joined hands to facilitate financing for entrepreneurs in internet service.

Prime Bank Managing Director and CEO Rahel Ahmed and ISPAB President Md. Aminul Hakim formally launched the alliance through a virtual press meet on Monday.

Minister for Post and Telecommunications Mustafa Jabbar was present as the Chief Guest.

The partnership titled "Prime Bank-ISPAB Alliance for ISP-MSME Financing Solutions" will enable easy access to finance to Internet service providing companies as they strive for market expansion across the country. It will be a big boost for the country's ISP sector as eligible ISPAB members can now avail collateral free loan up to BDT 50 lakh and other tailor-made financing solutions.

Under the arrangement, the e-commerce firms will get working capital (CC, OD and Demand Loan), Term Loans for Fixed Asset Purchase and Capital expenditures, International Trade solution- LC, LATR, IDBP etc., Bank Guarantee, Work Order etc. They can also avail a wide range of deposit products and free Internet Banking - ALTITUDE - for conducting broad range of e-transaction. They will need two-year business experience and introduction letter from ISPAB. The companies can apply for loan from the comfort of their office or home as Prime Bank has assigned dedicated Relationship Manager for exclusive service for valued ISPAB members.

On the occasion, Minister for Post and Telecommunications Mustafa Jabbar said: "With this financing initiative of Prime Bank, the earlier distance between banking and ICT sector has been removed. We believe other banks will follow Prime Bank and extend financing to ISP entrepreneurs. Like immovable property in other business, the knowledge and intellectual property of an entreprener are valuable asset. Young and creative entrepreneurs are bringing in new innovation in ICT industry and injecting dynamism in the economy."

The minister underscored the need for reducing cost of Internet and importance of making internet affordable for the students and educational institutions. He lauded Prime Bank for introducing the loan for the ISP entrepreneurs. He said Prime Bank would be one step ahead from others as it had launched the credit program as the pioneer.

Commenting on the alliance, Managing Director and CEO, Prime Bank Rahel Ahmed, said: "Prime Bank is fully aligned with the government's vision of making a Digital Bangladesh as the country sets sight to become a middle income country. Internet service sector is instrumental to the vision of Digital Bangladesh and also key to growth in Digital Banking. We hope with the financing solution, the ISP companies will be able to expand their services to the unexplored areas and strengthen their presence across the country. Prime Bank is committed to be a part of the growth journey of this promising sector."

Prime Bank's Head of MSME Banking Syed M Omar Tayub, Head of Brand and Communications Nazmul Karim Chowdhury and ISPAB Secretary General Md. Emdadul Hoque were also present. In view of the COVID-19 outbreak, the bank conducted the event through virtual media as part of its efforts to reinforce social distancing.