UCB, SME Foundation team up to expand financing

United Commercial Bank (UCB) PLC has signed a partnership agreement with the SME Foundation to improve access to financing for businesses in the cottage, micro, small and medium enterprises (CMSME) sector.

Under the participation agreement, signed as part of the Credit Wholesaling Programme, CMSME entrepreneurs will be able to access loans at a competitive interest rate of 8 percent.

Anwar Hossain Chowdhury, managing director of the SME Foundation, and Mohammad Mamdudur Rashid, managing director and CEO of UCB, signed the agreement at a ceremony held at InterContinental Dhaka recently, according to a press release.

Speakers at the event said the initiative would enable CMSME entrepreneurs to obtain loans at an 8 percent interest rate under simplified terms, making it easier for small businesses to grow and expand.

Khandakar Abdul Muktadir, minister for industries, commerce, and textiles and jute, attended the programme as the chief guest.

In addition, UCB has entered into another agreement with the Japan International Cooperation Agency (JICA) to support CMSME clients in agro-based industries.

Under this arrangement, eligible businesses will be able to access loans at a 9 percent interest rate.

These initiatives are expected to support the growth of Bangladesh’s CMSME and agro-based sectors, while also strengthening financial inclusion across the country.

Md Obaidur Rahman, secretary of the Ministry of Industries and chairman of the SME Foundation; Nurun Nahar, deputy governor of Bangladesh Bank; Mohammad Ridwanul Haque, head of distribution and strategy at UCB; and Zeeshan Kingshuk Haq, chief communication officer, along with other senior officials from both organisations, were also present.