Midland Bank to lend small businesses at 7% under BB schemes

Midland Bank will provide loans at a concessional rate of 7 percent to cottage, micro, small, and medium Enterprises (CMSMEs), including cluster-based businesses, under two Bangladesh Bank refinance schemes worth a combined Tk 4,500 crore.

The bank signed a participation agreement with the central bank on May 18 in this regard, it said in a press statement issued recently.

The commercial bank said it will implement the BB’s Tk 3,000 crore Cluster Financing Scheme and the Tk 1,500 crore Financial Sector Fund for the Development of Micro, Small and Medium Enterprises (FSFDMSME) fund.

Both term loans and working capital facilities will be available under the agreement.

The initiative aims to promote entrepreneurship and support the sustainable growth of cluster-based and CMSME enterprises across Bangladesh, it added.

The initiative is expected to enhance financial inclusion, encourage entrepreneurship development, generate employment opportunities, and strengthen the CMSME sector, which plays a vital role in Bangladesh’s economic growth and development, the press statement also said.

The agreement signing ceremony was held on May 18 at the Jahangir Alam Conference Hall of the BB.

Nurun Nahar, deputy governor of BB, attended the event as the chief guest. Nawshad Mustafa, director of SMESPD of BB and Imtiaz U Ahmed, managing director & CEO of Midland Bank, signed and exchanged the agreement documents on behalf of their respective organisations.

Among others, Mohd Javed Tarek Khan, head of Institutional Banking Division; Ahsan Jamil Hossain, head of SME Division of Midland Bank; and senior officials from BB and Midland Bank were present at the ceremony.