Bangladesh Bank, Padma Bank to provide loans to small entrepreneurs

Padma Bank and the Bangladesh Bank recently signed an agreement to provide loans to small and marginal entrepreneurs and communities.

Md Amir Uddin, executive director of the financial inclusion department of the central bank, and Mohammed Emtiaz Uddin, deputy managing director and chief business officer of Padma Bank, inked the deal at the BB headquarters in the capital's Motijheel, read a press release.

Under the agreement, Padma Bank will provide collateral-free loans at a maximum interest rate of 7 percent and up to Tk 5 lakh to marginal or landless farmers, low-income professionals, and small businesses with accounts of Tk10/Tk50/Tk100.

The loans will be provided through all branches and sub-branches of Padma Bank across the country.

The agreement is expected to increase access to finance for small and marginal entrepreneurs and communities, thereby stimulating economic activities and promoting overall economic growth.

Among others, Abeda Rahim, additional director of the BB, and Md Riazul Islam, executive vice-president and head of SME and agriculture banking division of Padma Bank, were also present.