BRAC Bank achieves record in collateral-free SME loan to internet entrepreneurs

BRAC Bank has set a unique record by providing Tk 1.0 billion (Tk 100 crore) in collateral-free loans to more than 550 internet entrepreneurs across Bangladesh. This initiative is a part of the government's nationwide drive to boost internet penetration, making it an outstanding achievement in the banking sector.

A celebration was held at BRAC Bank's head office on July 30, hosting a ceremony for ISPAB leadership, says a press release on Friday. 

Syed Abdul Momen, deputy managing director and head of SME Banking, BRAC Bank, Md Emdadul Hoque, president, ISPAB, and other directors of ISPAB and senior officials of the bank were present at the ceremony.

The programme recognised the collaborative efforts of BRAC Bank and the Internet Service Providers Association of Bangladesh (ISPAB) in advancing internet access to rural and semi-urban regions. In line with the government's ‘Smart Bangladesh’ vision, this partnership facilitated digital transformation and enabled easy finance access for internet service companies.

"In this digital era, the internet has become a way of life – be it doing business, education, healthcare, banking etc. The internet is instrumental to economic development and national progress. With the easy access to finance facility, the ISP companies have been able to scale up their operations and ensure internet service across the country," said Syed Abdul Momen, emphasising the bank's commitment to further supporting grassroots entrepreneurs in non-traditional industries.

The collaboration between BRAC Bank and ISPAB has empowered eligible members with unsecured loans through the bank's One-Stop-Service and contributed to the growth of the country’s ISP sector. 

As part of the government's ambitious roadmap to reach the upper middle-income bracket by 2031 and developed country bloc by 2041, the internet will improve living standards and create new businesses, employment, and opportunities.

As the pioneer in SME banking, BRAC Bank is determined to explore more avenues to offer collateral-free financing, thereby strengthening the nation's path towards phenomenal growth in various sectors, the press release reads further.