BRAC Bank-SME Foundation loan for hosiery entrepreneurs

BRAC Bank and SME Foundation signed an agreement to provide SME loans to hosiery entrepreneurs in Gaibandha.

Under the agreement, BRAC Bank and SME Foundation will partner to offer working capital financing to the entrepreneurs at preferential rates.

Hundreds of factories in the hosiery cluster at Gobindaganj in Gaibandha employ more than 100 thousand workers. The hosiery cluster flourished over the past 70 years in the area and now generates an annual turnover of BDT 5 billion. The cluster meets a sizeable domestic demand for sweaters, cardigans, warm clothes for children, blankets, caps, etc.

The entrepreneurs can avail loans ranging from Tk. 50,000 to Tk 1,500,000 without any collateral. The financing by BRAC Bank will play a catalytic role in enhancing manufacturing growth and expanding the cluster further. BRAC Bank’s branch and strong SME Unit Office network will facilitate door-to-door services and quick loan disbursement.

Selim RF Hussain, managing director and CEO of BRAC Bank, and Md. Safiqul Islam, managing director, SME Foundation, signed the agreement at the SME Foundation Office in Dhaka on 18 July 2018. AK Sheikh Mufakkhar Hossain, general secretary, Nayarhat Hosiery Industry Entrepreneurs Association, was also present on the occasion.