Dhaka Bank PLC has entered into a collaboration with the SME Foundation (SMEF) to offer loans to Cottage, Micro, Small, and Medium Enterprises (CMSMEs) through a revolving loan facility.

The total fund for this initiative is Tk 450 crore, sourced from the government’s stimulus package and Dhaka Bank’s own resources. This move aims to assist businesses in overcoming the economic challenges brought by the pandemic.

The agreement between Dhaka Bank and SMEF was signed on June 11, 2024, at a notable hotel in Dhaka.

According to a media release, SME Foundation will channel Tk 450 crore to participating banks and non-bank financial institutions (NBFIs). These funds will be distributed to entrepreneurs at a subsidized interest rate of 6 percent.

Mr. A K M Shahnawaj, Acting Managing Director of Dhaka Bank PLC, and Mr. Salahuddin Mahmud, Managing Director (Additional Charge) of SME Foundation, signed the agreement on behalf of their respective organizations. The event was also attended by Mr. Md Mahbubur Rahman Palash, Head of MSME and Emerging Business Division at Dhaka Bank.

The signing ceremony was presided over by Professor Md Masudur Rahman, Chairman of the SME Foundation. Notable attendees included Ms. Zakia Sultana, Senior Secretary of the Ministry of Industries, and Mr. Md Abdur Rahman Khan FCMA, Secretary of the Financial Institutions Division, Ministry of Finance, along with high-ranking officials from various banks and NBFIs.