SME Foundation to provide over Tk45cr in loans to small entrepreneurs

The SME Foundation will disburse more than Tk45 crore in loans to micro, small and medium entrepreneurs under its Credit Wholesale Programme financed through the foundation’s revolving fund.
Under new guidelines from the Finance Division, the loans will carry an interest rate of 8%. In addition, returnee migrant workers seeking to become entrepreneurs will be able to access loans at a concessional 7% interest rate through Karmasangsthan Bank with support from the International Labour Organization (ILO), Bangladesh.
Entrepreneurs will be eligible for loans ranging from Tk1 lakh to Tk25 lakh. However, cottage, micro, small and medium enterprises (CMSMEs) in agro-based industries and food processing sectors can receive up to Tk1 crore at a 9% interest rate.
The SME Foundation signed agreements with three partner banks—Mutual Trust Bank, Dhaka Bank and Karmasangsthan Bank—on Tuesday. Anwar Hossain Chowdhury, managing director of SME Foundation, delivered the welcome speech at the event. 
Speaking at the event, Industries, Commerce, and Textiles and Jute minister Khandakar Abdul Muktadir said the initiative would help transform remittances into entrepreneurship, investment and employment. He stressed the government’s commitment to supporting women, youth, returnee migrants and entrepreneurs in climate-vulnerable regions.
The foundation said loans of up to Tk10 lakh will be provided without collateral. Borrowers will have up to four years to repay, including a six-month grace period.
At least 25% of the fund must be allocated to women entrepreneurs, 20% to SME clusters and 60% to manufacturing enterprises. Priority will also be given to ICT-based startups, export-oriented and import-substitute industries, disadvantaged groups, climate-resilient businesses and returnee migrant entrepreneurs.
Since its inception, the SME Foundation has disbursed more than Tk1,250 crore among nearly 13,000 CMSME entrepreneurs under the programme.