The SME Foundation and Prime Bank have signed a refinancing agreement in Dhaka to expand access to affordable loans for cottage, micro, small, and medium (CMSME) entrepreneurs. The initiative, supported by the government’s Tk 300 crore revolving fund and guided by credit wholesaling directives, aims to strengthen grassroots economic activity. Industry, Commerce, and Textile Minister Khandaker Abdul Muktadir attended the signing ceremony as chief guest, reaffirming the government’s commitment to a business-friendly environment for small entrepreneurs.

Under the agreement, eligible entrepreneurs will receive loans at a maximum annual interest rate of 8 percent, ranging from Tk 1 lakh to Tk 25 lakh, with a repayment period of up to four years including a six-month grace period. A significant portion of the fund is reserved for women entrepreneurs and those in specific industrial clusters. Priority will also be given to young ICT innovators, import-substitute producers, and entrepreneurs in climate-vulnerable or disadvantaged regions.

Leaders from both institutions expressed optimism about the program’s potential to enhance employment, promote eco-friendly technology, and integrate returning migrants into productive sectors, thereby strengthening Bangladesh’s CMSME sector.