BRAC Bank signed two refinancing agreements with Bangladesh Bank to widen access to low-cost financing for cottage, micro, small and medium enterprises (CMSMEs), strengthening support for entrepreneurs and cluster-based industries across Bangladesh.
The agreements, signed at Bangladesh Bank on 18 May, will allow the bank to disburse concessional loans under two separate refinancing schemes, including the central bank’s Tk3,000 crore Cluster Finance Refinance Scheme and the Tk1,500 crore Financial Sector Fund for the Development of MSMEs (FSFDMSME), the bank said in a press release on Monday.
Under the Cluster Finance Refinance Scheme, BRAC Bank will provide term loans and working capital support to entrepreneurs operating in industrial clusters nationwide.
Eligible businesses will be able to access financing at interest rates starting from 7 per cent to support business expansion, improve productivity and generate employment.
The second agreement enables BRAC Bank to participate in the Financial Sector Fund for the Development of MSMEs, which targets manufacturing and service-sector enterprises.
Under the scheme, micro enterprises will be eligible for loans of up to Tk1 crore, while small and medium enterprises can access financing of up to Tk5 crore at a 7 per cent interest rate.
BRAC Bank Deputy Managing Director and Head of SME Banking Tareq Refat Ullah Khan exchanged agreement documents with Bangladesh Bank SME and Special Programmes Department Director Nawshad Mustafa at a ceremony held at the central bank headquarters.
Bangladesh Bank Deputy Governor Nurun Nahar attended the signing programme.
Bangladesh Bank Executive Director Husne Ara Shikha and BRAC Bank Head of Cottage, Micro and Small Business Unit 2 and Head of Liability and Cash Management for SME Banking Mahbubur Rahman were also present.
The bank said the refinancing support would help strengthen access to formal financing for grassroots entrepreneurs and support broader economic activity across the country.
As one of the country’s largest SME-focused lenders, BRAC Bank has continued expanding financing support for small businesses through partnerships with Bangladesh Bank and targeted refinancing programmes.
