The SME Foundation has announced a Tk 450 crore loan scheme to support small and medium-sized enterprises (SMEs) across the country. Entrepreneurs can avail loans ranging from Tk 1 lakh to Tk 25 lakh, with a maximum of Tk 50 lakh for purchasing capital equipment. The interest rate for these loans is set at 6 percent.

In a recent press release, the SME Foundation stated that it has signed agreements with 23 banks and financial institutions to facilitate this initiative. The signing ceremony took place on Tuesday, with the managing directors of 19 banks and four financial institutions in attendance.

The participating banks and financial institutions include Sonali Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Karmasangsthan Bank, BRAC Bank, Bank Asia, Dhaka Bank, Eastern Bank, Mutual Trust Bank, NRB Commercial Bank, Mercantile Bank, Prime Bank, Premier Bank, City Bank, Southeast Bank, Shahjalal Islami Bank, Bengal Commercial Bank, United Commercial Bank, Trust Bank, IDLC Finance, IPDC Finance, LankaBangla Finance, and United Finance.

To qualify for these loans, five criteria have been established:

• Entrepreneurs from priority SME sub-sectors, clusters, and value chains.
• Producers of export-oriented and import-substitute products.
• Young or new entrepreneurs in ICT and technology-driven creative businesses who have not previously received bank loans.
• Entrepreneurs from backward regions, tribal areas, physically disabled individuals, and the third gender.
• Entrepreneurs recommended by various trade organizations, SME associations, women entrepreneur organizations, and relevant government and non-government bodies.

The SME Foundation will encourage partner banks and financial institutions to offer collateral-free loans. No collateral will be required for loans up to Tk 10 lakh. Borrowers will have a maximum repayment period of four years, with the option to repay in 48 monthly installments, including a six-month grace period based on the customer-bank relationship.

Thirty percent of the total loans will be allocated to women entrepreneurs, and 10 percent to SME cluster entrepreneurs. For women, 50 percent of the loan must be allocated to production and service sectors, with the remainder for value chains and other sectors. For male entrepreneurs, 50 percent of the loan will be allocated to the production sector, 25 percent to the service sector, and 25 percent to value chains and other sectors.

The foundation will monitor the loan distribution and recovery activities of the banks and financial institutions. Field inspections will be conducted to ensure that loans are distributed according to the agreement and to the appropriate entrepreneurs. However, loans will not be provided for unproductive sectors such as grocery stores, pharmacies, hardware stores, and environmentally harmful businesses.

Previously, during the COVID-19 pandemic, the SME Foundation distributed Tk 300 crore under the government’s stimulus package. Additionally, Tk 294 crore was distributed from a revolving fund to SMEs, clusters, client groups, associations, chambers, and women entrepreneurs.

The signing ceremony was chaired by SME Foundation Chairperson Md Masudur Rahman. The event featured Industry Minister Nurul Majid Mahmud Humayun as the chief guest, with Senior Secretary of the Ministry of Industry Zakia Sultana and Secretary of the Financial Institutions Division Md Abdur Rahman Khan as special guests.