EBL offers SME loans to leather industry

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EBL offers SME loans to leather industry
Business Report

SME Foundation and Eastern Bank Ltd has signed a Memorandum of Understanding (MOU) on Sunday to give low cost loans to small entrepreneurs of the country’s leather industry starting the distribution from the signing spot.

Two small entrepreneurs received loans on the occasion.

The MOU was signed at a local hotel in the city. Managing Director and CEO of Eastern Bank Ltd Ali Reza Iftekhar and his counterpart of the SME foundation Syed Rezwanul Kabir signed the accord.

Industries Minister Dilip Barua was chief guest while the governor of Bangladesh Bank Dr Atiur Rahman was the special guest on the occasion. Under the agreement Eastern Bank will offer loans to small entrepreneurs of the leather industry at 9.0 percent interest.

The credit volume may vary from Tk 50,000 to Tk 10,00000 crore. Those having business experience of minimum one-year period are eligible for the loan to be repayable in three years. One has to put no collateral against the loans.

Speaking on the occasion, the Industries Minister said SME sector plays important role as the growth of engine in the country’s industrial sector. But their number one problem is the funding crisis. He said the move of the Eastern Bank to give them low cost loans will go a long way to fill up the credit vacuum in this sector.

Barua said talks are also in progress to secure loans for the country’s SME sector from the Islamic Development Bank.

Dr Atiur Rahman said SME sector has mainly focused on promoting the country’s middle to lower end entrepreneurs and this group play the most pivotal role in the nation’s overall development.

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