BRAC Bank inks partnership deal with SME Foundation

BRAC Bank Ltd has recently signed a partnership agreement with SME Foundation for providing collateral free SME loans to shoe manufacturers.

The agreement was signed at SME Foundation office, said a press release.

Managing Director and CEO of the bank Selim R F Hussain and the foundation's Managing Director Md Safiqul Islam signed the agreement on behalf of their organisations.

BRAC Bank and SME Foundation will jointly offer working capital financing to the entrepreneurs, under the agreement. The financing arrangement will be under the refinancing facility of Bangladesh Bank.

As per the agreement, the bank will receive Tk12 crore from SME Foundation.

There are many leather and shoe manufacturing clusters in various parts of the country meeting a sizeable domestic demand for shoes and leather items, added the press release.

Syed Abdul Momen, BRAC Bank's head of SME banking and other officials of both organisations were present on the occasion.

"As an SME-focused bank, BRAC Bank is committed to ensure access to finance to the SME entrepreneurs at the grassroots. We have long been partner of the SME Foundation to provide SME loans to entrepreneurs in different clusters. We believe BRAC Bank will play a catalytic role in enhancing manufacturing growth and expanding the shoe clusters," said Selim R F Hussain, managing director and CEO of the bank.

Presently, the two organisations are jointly providing SME loan facilities in Gobindaganj Hosiery Cluster, Gaibandha and Cricket Bat Cluster in Pirojpur and other areas.