SME Foundation to Disburse Tk 45 Crore in Loans to Small Businesses and Returnee Migrants

The SME Foundation has partnered with three banks to disburse over Tk 45 crore in loans to micro, small, and medium enterprises (MSMEs). The initiative, part of the foundation's Credit Wholesaling Programme, aims to support local businesses and help returnee migrant workers transition into entrepreneurship.

Loan Details and Interest Rates The loans will be provided from the foundation's revolving fund at an 8% interest rate, following new guidelines from the Finance Division.

In a separate initiative backed by the International Labour Organization (ILO), returnee migrant workers can access loans through Karmasangsthan Bank at a reduced interest rate of 7%.

Standard loan amounts will range from Tk 1 lakh to Tk 25 lakh. However, entrepreneurs running cottage, micro, small, and medium enterprises in the agro-based and food-processing sectors can secure up to Tk 1 crore at a 9% interest rate.

Collateral and Repayment Terms To ensure accessible financing, partner banks will offer collateral-free loans for amounts up to Tk 10 lakh. Borrowers will have a maximum of four years to repay their loans, which includes a grace period of up to six months, depending on their relationship with the lending bank.

Agreements and Leadership The agreements were signed on Tuesday in Dhaka between the SME Foundation and its three partner banks: Mutual Trust Bank, Dhaka Bank, and Karmasangsthan Bank.

Industries Secretary Abdoon Naser Khan chaired the signing ceremony. Speaking as the chief guest, Industries and Commerce Adviser Khandaker Abdul Muqtadir highlighted the broader economic impact of the program, stating that the initiative creates a sustainable pathway to transform "remittances into entrepreneurship, entrepreneurship into investment, and investment into employment.