Financial inclusion of smaller businesses: Uttaron SME card launched

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Uttaron SME card has been launched to help ease the tiny businesses and startups’ usage of mainstream investment and finance.

The service was launched at the seminar “SME Financing and Launching of SME Card” jointly organised by Prism Bangladesh, NRB Bank, and Aurora in the administrative centre on Saturday.

An incredible number of small and medium enterprises (SMEs), cottage and micro sector businesses which have remained out of formal banking channel need a big push with proper backing from larger finance institutions, experts say.

Introduction of smart cards like bank debit cards with financial facilities could be an option, to commence with, they maintain.

Uttaron team leader Md Quamruzzaman said they would enhance the capacity of the SMEs through mentorship, advisory services and skill training. “We will also give them access to low-cost formal finance and offer quality and risk management services.”

“Women and young entrepreneurs are certain to get loans of up to Tk500,000,” Quamruzzaman said. “Our purpose is to create an SME platform to improve the sector’s competitiveness and create an enabling environment for it.”

ATM Zamal Uddin, NRB Bank’s head of SME banking, said they were providing loans of up to Tk1,000,000 to startups.

“If new entrepreneurs come to us after completing an exercise from the Bangladesh Bank, we will provide them up to Tk10 lakh at 9% interest.”

There are around 8 million SMEs in Bangladesh. Of these, 72.6% are micro, 20% small, and 6.4% medium enterprises, ATM Zamal said. “We want to create a business ecosystem and market linkages for them.”

Source: https://unb.com.bd

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