IPDC Finance and SME Foundation have signed two agreements to expand access to low-cost financing for small and medium enterprises (SMEs), aiming to support entrepreneurs with easier credit and boost economic activity.
The initiative will provide loans on easy terms to productive SME industries, business clusters and women entrepreneurs across the country, with a focus on agro-based industries and the food processing sector, IPDC said in a press release on Thursday.
Under the SME Foundation’s Credit Wholesaling Programme, the interest rate for loans has been set at 8 per cent.
Under the Japan International Cooperation Agency-funded Food Value Chain Improvement Project, the interest rate has been fixed at 9 per cent.
The agreements were signed at a ceremony attended by Adviser to the Ministries of Industries, Commerce, Textiles and Jute Khandaker Abdul Muktadir as chief guest and Bangladesh Bank Deputy Governor Nurun Nahar as special guest.
Industries Secretary and SME Foundation Chairperson Md Obaidur Rahman chaired the event.
IPDC Finance Managing Director Rizwan Dawood Shams and SME Foundation Managing Director Anwar Hossain Chowdhury signed the agreements on behalf of their respective organisations.
IPDC Finance Deputy Managing Director and Acting Head of SME Ashiq Hossain and Assistant General Manager of SME Division Mohammad Adnan Islam attended the event.
SME Foundation Board Member Nasreen Fatema Awal, Deputy Managing Director Md Nazim Hasan Sattar and Deputy General Manager Suman Chandra Saha were also present, along with senior officials from both organisations.
The initiative is expected to expand financing opportunities in the SME sector and increase participation of women entrepreneurs across the country, stakeholders said.
