BRAC Bank, SME Foundation sign deal to generate affordable financing for small businesses

Businesses will receive loans ranging from Tk 100,000 to Tk 2.5 million under the initiative

BRAC Bank and the SME Foundation have signed an agreement to provide easier and more affordable financing for cottage, micro and small enterprises, with a focus on women-led and manufacturing businesses.

The agreement was signed in Dhaka on Apr 9 by BRAC Bank Managing Director and CEO Tareq Refat Ullah Khan and SME Foundation Managing Director Anwar Hossain Chowdhury, said a media statement.

Under the partnership, SME Foundation will channel Tk 3 billion through banks and financial institutions under its revolving fund credit wholesaling programme.

Loans ranging from Tk 100,000 to Tk 2.5 million will be provided, the statement read.

BRAC Bank will disburse Tk 400 million from the fund, offering collateral-free loans at an 8 percent interest rate.

Priority will be given to manufacturing units, cluster-based enterprises and women entrepreneurs.

The initiative aims to improve access to finance for underserved small business owners and support inclusive economic growth.

Industries, Commerce and Textiles and Jute Minister Khandaker Abdul Muktadir attended the signing ceremony as chief guest.

SME Foundation Chairman and Industries Secretary Md Obaidur Rahman chaired the event, with Bangladesh Bank Deputy Governor Nurun Nahar and senior officials from banks and financial institutions attending, according to the statement.

Tareq Refat Ullah Khan said the partnership reflects a shared commitment to supporting grassroots entrepreneurs and expanding financing through the revolving fund mechanism.

He said the initiative will help scale up credit access, create jobs and strengthen small businesses, particularly women-led and manufacturing enterprises.

In the media statement, BRAC Bank said it remains committed to expanding access to SME finance through innovative partnerships and financing solutions across the country.