Bengal Commercial Bank signs deals with BB to support CMSME financing

Bengal Commercial Bank PLC has signed two participatory agreements with Bangladesh Bank under the BB’s “Financial Sector Fund” for the development of micro, small and medium enterprises and the “Cluster Financing Scheme” to provide easy-term financing for cottage, micro, small and medium enterprises (CMSMEs).

Tarik Morshed, managing director of Bengal Commercial Bank PLC, and Nawshad Mustafa, director of the SME and Special Programmes Department of the Bangladesh Bank, signed the agreements at the BB headquarters in Motijheel, Dhaka recently, according to a press release.

Nurun Nahar, deputy governor of Bangladesh Bank, attended the signing ceremony.

Under the agreements, CMSME entrepreneurs will be able to access financing at a 7 percent interest rate, subject to compliance with the terms and conditions set by the bank.

Under the Cluster Financing Scheme, Bengal Commercial Bank will provide term loans and working capital support to entrepreneurs engaged in various industrial clusters across the country, with funding support from the Tk 3,000 crore programme of Bangladesh Bank.

The bank has also joined the Tk 1,500 crore Financial Sector Fund for the Development of MSMEs (FSFDMSME), which aims to strengthen financing support for CMSME development nationwide.

Under this scheme as well, entrepreneurs will be eligible for loans at a 7 percent interest rate to support business expansion, productivity improvement, and employment generation.

KM Awlad Hossain, additional managing director and chief business officer of Bengal Commercial Bank PLC, was also present at the ceremony, along with senior officials from both organisations.