United Finance joins Tk5,000cr Bangladesh Bank CMSME refinance scheme
United Finance PLC has signed a participation agreement with Bangladesh Bank under the CMSME Working Capital Refinance Scheme to expand access to affordable working capital financing for cottage, micro, small and medium enterprises (CMSMEs) across the country.
United Finance PLC Chief Business Officer Mohammad Monir Uddin and Bangladesh Bank SME and Special Programmes Department Director Md Zabdul Islam signed the agreement on behalf of their respective organisations at the Bangladesh Bank head office, according to the press release.
Bangladesh Bank established the Tk5,000 crore revolving fund to support operating CMSMEs that are unable to run their production, service or business activities at full capacity because of insufficient working capital.
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Under the scheme, eligible enterprises can access working capital loans at a maximum interest rate of 9%.
The scheme also provides a grace period of up to six months, while renewed working capital facilities are eligible for refinancing.
With the signing of the agreement, United Finance has become a Participating Financial Institution (PFI) under the scheme.
As a participating financial institution, United Finance will be able to channel low-cost refinance funds to eligible small businesses under Bangladesh Bank's applicable guidelines and conditions.
The facility is intended to help CMSMEs address working capital shortages, restore or maintain production and business activities, protect employment and pursue sustainable growth.
Operating since 1989, United Finance said it remains focused on responsible financing, customer service, good governance and sustainable development.
The company said its participation in the refinance scheme further reflects its commitment to supporting the resilience and growth of Bangladesh's CMSME sector.
