IPDC Finance has signed an agreement with SME Foundation to disburse loans to Cottage, Micro, Small and Medium Enterprises (CMSMEs) at rural and marginal areas.
The agreement was signed between SME Foundation and IPDC Finance at a ceremony held on 27 July at the Pan Pacific Sonargaon Hotel in Dhaka, reads a press release.
Sheikh Mohammad Salim Ullah, secretary of Financial Institutions Division (FID), Ministry of Finance attended the event as the chief guest.
AKM Sajedur Rahman Khan, deputy governor of Bangladesh Bank and Dr Md Khairuzzaman Mozumder, additional secretary of Finance Division were present as the special guests.
Prof Dr Md Masudur Rahman, chairman of SME Foundation presided over the event.
Dr Mofizur Rahman, managing director of SME Foundation and Rizwan Dawood Shams, additional managing director of IPDC Finance and Mohammad Mahmudur Rahman, head of SME, IPDC Finance were present in agreement signing ceremony.
In order to facilitate business growth and economic recovery at rural areas after Covid fallout, Bangladesh government allocated an incentive package for CMSMEs under which a revolving fund has been created in favor of SME Foundation to disburse loans to the CMSMEs.
SME Foundation have signed an agreement with 18 banks and Financial Institutions to disburse loans from the Tk400 crore fund. The Tk400 crore revolving loan package comprises Tk300 crore from the government stimulus and Tk100 crore from the foundation.
The fund has been set up under the guidance of Finance Division.
According to SME foundation, entrepreneurs from priority SME sub-sectors, manufacturing clusters and value chain of goods, women entrepreneurs, new entrepreneurs who are yet to receive any loan from banks, entrepreneurs in tribal and marginalised areas, physically challenged and third gender entrepreneurs will be the priority group for the new loan package.
The entrepreneurs will be able to get a minimum of Tk1 lakh to a maximum of Tk30 lakh at 4% interest rate and repay in 30 monthly instalments in three years.
Twenty-five percent of the total loan, which is Tk75 crore is designated for women entrepreneurs. IPDC participated in the loan distribution for CMSMEs under incentives package before with huge success.