IPDC Finance joins SME Foundation’s credit wholesaling programme for CMSME loan disbursement

IPDC Finance has announced its participation in the agreement signing ceremony for the third phase of the SME Foundation’s revolving fund loan disbursement programme.

This initiative aims to disburse an additional BDT 4.5 billion (450 crore) in loans to Cottage, Micro, Small, and Medium Enterprises (CMSMEs). IPDC Finance plays a pivotal role in this significant financial empowerment effort, according to a media release. 

The programme is part of the Prime Minister’s stimulus package and the SME Foundation’s revolving fund, which is dedicated to supporting CMSMEs in Bangladesh in response to the challenges posed by the COVID-19 pandemic.

Under this initiative, IPDC Finance will administer loans at a 6 per cent interest rate, with no collateral required for loans up to BDT 1 million (10 lakh). The disbursement strategy includes a commitment to allocate at least 30 per cent of the funds to female entrepreneurs and 10 per cent to entrepreneurs within CMSME clusters.

The programme allows loans up to BDT 2.5 million (25 lakh) for entrepreneurs, with a maximum of BDT 5 million (50 lakh) available to purchase capital machinery.

The agreement includes participation from 19 banks and 4 financial institutions, encouraging them to offer collateral-free loans primarily targeting the manufacturing and service sectors.

This collaborative effort aims to provide accessible and affordable financing solutions to empower entrepreneurs, drive economic growth, and support sustainable business practices in Bangladesh, the release says. 

The event was graced by the presence of several distinguished guests, including Zakia Sultana, Senior Secretary of the Ministry of Industry; Md. Abdur Rahman Khan FCMA, Secretary of the Financial Institutions Department at the Ministry of Finance; Md. Masudur Rahman, Chairperson of the SME Foundation; Rizwan Dawood Shams, Managing Director, IPDC Finance; Mohammad Mahmudur Rahman Shawon, Head of SME, IPDC Finance along with managing directors from participating banks and financial institutions, as well as representatives from the SME Foundation.

Mr Rizwan Dawood Shams, expressed his enthusiasm for the initiative, stating, "We are proud to be a part of this crucial program that aims to support and uplift the CMSME sector in Bangladesh. By providing accessible and low-cost financing solutions, we are committed to empowering entrepreneurs and contributing to the country’s economic growth and sustainability."