United Finance PLC can now channel low-cost working capital loans to cottage, micro, small and medium enterprises (CMSME) after recently signing a Participation Agreement with Bangladesh Bank (BB) under the CMSME Working Capital Refinance Scheme.
Eligible enterprises can access working capital loans at a maximum interest rate of 9 per cent, with a grace period of up to six months. Renewed working capital facilities also qualify for refinancing, said a press release on Wednesday.
The agreement was signed by United Finance PLC Chief Business Officer Mohammad Monir Uddin and BB SME & Special Programmes Department (SMESPD) Director Md Zabdul Islam on behalf of their respective organisations at BB Head Office.
BB created the Tk5,000 crore revolving fund to help operating CMSMEs that cannot run at full capacity because they lack working capital. With the agreement, United Finance becomes a Participating Financial Institution (PFI) under the scheme.
