United Commercial Bank (UCB) signed a participation agreement with SME Foundation to provide loans to cottage, micro, small and medium enterprises at 8 per cent interest.
The agreement, under the Credit Wholesaling Programme, was signed at Hotel InterContinental Dhaka, the bank said in a press release.
SME Foundation Managing Director (MD) Anwar Hossain Chowdhury and UCB MD and CEO Mohammad Mamdudur Rashid exchanged the agreement on behalf of their organisations.
Industries Minister Khandaker Abdul Muktadir attended the event as chief guest, while Industries Ministry Secretary and SME Foundation Chairman Md Obaidur Rahman and Bangladesh Bank Deputy Governor Nurun Nahar were present as special guests.
UCB Head of Distribution and Strategy Mohammad Ridwanul Haque and Chief Communication Officer Zeeshan Kingshuk Haq were also present along with senior officials.
The initiative will enable CMSME entrepreneurs to access financing at simplified terms, supporting business expansion and growth, speakers said.
UCB has also signed a separate agreement with Japan International Cooperation Agency to provide loans to agro-based CMSME clients at 9 per cent interest.
The programmes are expected to support the growth of the CMSME and agro-based sectors while strengthening financial inclusion in Bangladesh.
