IPDC Finance joins SME Foundation's credit wholesaling programme for CMSME loan disbursement

IPDC Finance is delighted to announce its participation in the agreement signing ceremony for the third phase of the SME Foundation's revolving fund loan disbursement program.

This initiative aims to disburse an additional Tk450 crore in loans to Cottage, Micro, Small, and Medium Enterprises (CMSMEs). IPDC Finance plays a pivotal role in this significant financial empowerment effort, reads a press release.

The program is part of the Honorable Prime Minister's stimulus package and the SME Foundation's revolving fund, which is dedicated to supporting CMSMEs in Bangladesh in response to the challenges posed by the COVID-19 pandemic. Under this initiative, IPDC Finance will administer loans at a 6% interest rate, with no collateral required for loans up to Tk10 lakh. The disbursement strategy includes a commitment to allocate at least 30% of the funds to female entrepreneurs and 10% to entrepreneurs within CMSME clusters. The program allows loans up to Tk25 lakh for entrepreneurs, with a maximum of Tk50 lakh available to purchase capital machinery.

The agreement includes participation from 19 banks and 4 financial institutions, encouraging them to offer collateral-free loans primarily targeting the manufacturing and service sectors. This collaborative effort aims to provide accessible and affordable financing solutions to empower entrepreneurs, drive economic growth, and support sustainable business practices in Bangladesh.

The event was graced by the presence of several distinguished guests, including Zakia Sultana, Senior Secretary of the Ministry of Industry; Md. Abdur Rahman Khan FCMA, Secretary of the Financial Institutions Department at the Ministry of Finance; Md. Masudur Rahman, Chairperson of the SME Foundation; Rizwan Dawood Shams, Managing Director, IPDC Finance; Mohammad Mahmudur Rahman Shawon, Head of SME, IPDC Finance along with managing directors from participating banks and financial institutions, as well as representatives from the SME Foundation.

Mr. Rizwan Dawood Shams, expressed his enthusiasm for the initiative, stating, "We are proud to be a part of this crucial program that aims to support and uplift the CMSME sector in Bangladesh. By providing accessible and low-cost financing solutions, we are committed to empowering entrepreneurs and contributing to the country's economic growth and sustainability."

This agreement signing ceremony marks a significant milestone for both IPDC Finance and the SME Foundation. Through this collaborative effort, IPDC Finance reaffirms its commitment to fostering the growth of CMSMEs in Bangladesh, ensuring that entrepreneurs have the necessary resources to thrive in today's challenging economic landscape.