Prime Bank now becomes a tech evangelist
In a trailblazing move in the banking sector, Prime Bank is increasingly shifting its focus towards financing the ICT industry and has already started disbursing collateral-free loans among businesses in different segments of the digital business.
The lender today signed an agreement with the Internet Service Providers Association of Bangladesh (ISPAB) offering collateral-free loans of up to Tk 50 lakh to the members of the platform.
Earlier, the bank has inked similar deals with the Bangladesh Association of Software and Information Services (BASIS) and the e-Commerce Association of Bangladesh (e-CAB) and loan disbursement under those agreements has already started.
According to the accords, the working capital term loans will be available for fixed asset purchase, capital expenditure, international trade solution and bank guarantee against a work order, the bank said.
ISPAB members will need two years' business experience and an introduction letter from the association to avail themselves of the loans.
The announcement came at an online event attended, among others, by Telecom Minister Mustafa Jabbar, who said the initiative will open a new window of opportunities for both the banking industry and ICT businesses.
Prime Bank's initiative will provide a big boost to the booming ICT and IT-enabled services industry, he said.
"We believe other banks will follow Prime Bank and extend financing to ISP entrepreneurs. Like immovable property in other business, knowledge and intellectual property of an entrepreneur are valuable assets. Young and creative entrepreneurs are bringing in innovation in the ICT industry and injecting dynamism into the economy," Jabbar added.
If an ISP defaults on the loans, its membership will not be renewed and the association will also request the Bangladesh Telecommunication Regulatory Commission (BTRC) to cancel its licence, said Md Aminul Hakim, president of the ISPAB.
"We are getting the loans without any mortgages and the best part of the programme is that it takes less than a week to grant loans if documents are okay," Hakim said.
Prime Bank is fully aligned with the government's vision of making a Digital Bangladesh, said Rahel Ahmed, managing director and chief executive officer of Prime Bank.
"With the financing solution, the ISP companies will be able to expand their services to the unexplored areas and strengthen their presence across the country," he added.
ISPAB Secretary General Md Emdadul Hoque and Prime Bank's head of MSME banking Syed M Omar Tayub were also present.
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