FBCCI-Bengal Commercial Bank sign deal to provide easy loans to SMEs
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) signed a memorandum of understanding (MoU) with the Bengal Commercial Bank Limited to ensure easy access to loans for cottage, small and medium entrepreneurs.
Under the agreement, the Bengal Commercial Bank will provide loan assistance to the cottage, small and medium entrepreneurs across the country on easy terms for running their businesses.
Mohammad Mahfuzul Haque, secretary general of FBCCI and Tarik Morshed, managing director of Bengal Commercial Bank, signed the deal at the FBCCI boardroom in the capital on Wednesday.
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FBCCI president Md Jasim Uddin said at the signing event, "The SME sector has made a great contribution in creating employment in the country in the 50 years of independence. About 40% of employment in the country is in this sector. These entrepreneurs will be able to expand their businesses if they get loans on easy terms. It will also create new entrepreneurs."
He added, 'Non-Governmental Organisations (NGOs) have been collecting almost 100% of the loans from rural areas even with high-interest rates. It will also be possible for our banks if they want. Small entrepreneurs do not want to be defaulters."
"The growth of the SME sector will facilitate the achievement of other goals of the government including the LDC graduation," he further said.
Mostofa Azad Chowdhury, senior vice president of the FBCCI, was present at the event as a special guest.
He said, "Many small traders face problems in getting bank loans. Financial policies need to be simplified for the survival of new entrepreneurs. This agreement will strengthen the rural economy."
Tarik Morshed, managing director of Bengal Commercial Bank, said, "We have already signed an agreement with 15 associations to ensure that small and medium entrepreneurs get loans on easy terms. About 23% of our disbursed loans last year went to the SME sector. We have set a target of at least 55% loan allocation to the SME sector this year."
