IPDC, SME Foundation to disburse loans to CMSMEs

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 at a ceremony held on Wednesday in Dhaka, said a statement.

Sheikh Mohammad Salim Ullah, Secretary, Financial Institutions Division (FID), Ministry of Finance attended the event as the chief guest. AKM Sajedur Rahman Khan, Deputy Governor, Bangladesh Bank and Dr Md Khairuzzaman Mozumder, Additional Secretary, Finance Division, Ministry of Finance were present as the special guests while Prof Dr Md Masudur Rahman, Chairman, SME Foundation was the president of the event.

Dr Mofizur Rahman, Managing Director, SME Foundation; Rizwan Dawood Shams, Additional Managing Director, 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 favour of SME Foundation to disburse loans to the CMSMEs.

SME Foundation has signed an agreement with 18 banks and Financial Institutions to disburse loans from the Tk 400 crore fund. The Tk 400 crore revolving loan package comprises Tk 300 crore from the government stimulus and Tk 100 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 marginalized areas, physically challenged and third gender entrepreneurs will be the priority group for the new loan package.