United Finance PLC on Monday signed an agreement with Bangladesh Bank’s Credit Guarantee Department (CGD) to secure credit guarantees for collateral-free small loans it plans to increase in the coming years.
The central bank’s Tk 25,000 crore credit guarantee scheme is designed to support lenders in providing more loans to socio-economically prioritized sectors.
The scheme compensates lenders 75% of the principal amount as soon as the loans go bad, a significant improvement over previous schemes that compensated only after the court verdicts.
The agreement was signed by Muhammad Nazmul Haque, Director of CGD, Bangladesh Bank, and Mohammad Rafiqul Islam, Managing Director of United Finance PLC.
Md Sawkatul Alam, Executive Director of CGD, Bangladesh Bank, and senior officials from United Finance PLC, including Sudip Saha, Head of SME & Women Entrepreneur Financing, and Jason Anik Pandey, Head of Product Management & Business, were also present.
Mohammad Rafiqul Islam expressed gratitude to the Bangladesh Bank for launching the scheme, highlighting its role in enabling financial institutions to extend credit to entrepreneurs while safeguarding their interests.
United Finance, a trusted partner in the growth of SMEs for over 36 years, operates 23 branches across Bangladesh and is committed to using this fund to support the country’s entrepreneurs, the non-bank financial institution said in a statement.
The Credit Guarantee Scheme aims to expand access to finance for eligible borrowers and contribute to the growth of small and medium enterprises in Bangladesh.
