The Financial Express

CMSMEs to get loans worth Tk 2.0b from next month

| Updated: September 20, 2021 11:20:43

Representational image Representational image

SME Foundation is set to disburse credit worth Tk 2.0 billion under the government's second phase of stimulus package from next month, aiming to help entrepreneurs sustain their ventures amid pandemic.

Entrepreneurs in the Cottage, Micro, Small and Medium Enterprises (CMSMEs) sector, especially the marginal ones and women, will get access to the fund at a four per cent interest rate.

Md Mafizur Rahman, managing director of the SME Foundation, made the disclosure at a virtual views exchange meeting with the representative of banks and non-bank financial institutions regarding progress of the stimulus programme, said a statement.

Mr Rahman said half of the beneficiaries should get loan amounts below Tk 2.0 million each, while female entrepreneurs should receive 30 per cent of the total disbursement.

He also indicated that the upper ceiling of the credit could be capped within Tk 5.0 million from Tk 7.5 million earlier.

The entrepreneurship agency will ink partnership deals with the banks and non-bank financial institutions soon after approval of amendments brought to the credit guideline, at the Foundation's board meeting on September 2, he said.

They are likely to begin the disbursement from middle of September, Mr Rahman said, adding: "We are hopeful that we would accomplish the credit programme by December 31 after addressing the challenges we faced with the distribution of Tk 1.0 billion in the last fiscal year."

The Foundation has begun procedures to sign deals with the Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank, apart from other public-private entities, in a bid to ensure maximum inclusion of the credit facilities, he said.

Earlier, the Foundation disbursed Tk 1.0 billion among entrepreneurs in the last fiscal year.

The Foundation's general managers Farzana Khan and Sirajul Haider joined the meeting held on a virtual platform, added the statement.

[email protected]

Share if you like