About SMEF

The Small & Medium Enterprise Foundation (SMEF) was formally inaugurated today,
July 17, 2007, by Dr. A. B. Mirza Md. Azizul Islam, Hon’ble Advisor, ministries of
Finance, Commerce, Post & Telecommunications, Government of the People’s Republic
of Bangladesh at a ceremony held at the Hotel Sonargaon, Dhaka.

The SME Foundation is an independent center of excellence created and generously

capitalized by the Government of Bangladesh to the tune of a total endowment of Tk. 2
billion. The inaugural was presided over by Mrs. Geetiara Shafiya Chowdhury, Hon’ble
Advisor, ministries of Industry, Jute and Textiles, Children & Women Affairs and Social
Welfare, Government of the People’s Republic of Bangladesh. Dr. Md. Nurul Amin,
Secretary, Ministry of Industries, originally set the proceedings off by delivering an
address of welcome. The Hon’ble Finance Advisor also formally launched also at the
same time Small & Medium Enterprise Web Portal (SMEWP) and Small & Medium
Enterprise Helpline Centers, two of the deliverables within the framework of Small &
Medium Enterprise Sector Development Programme (SMESDP), the ADB-assisted
technical assistance (TA) project being implemented by the Ministry of Industries.
Thirty-two such helpline centers would from now be operating in twenty-five districts of
Bangladesh.

Special Guests who also spoke on the occasion, wishing the SME Foundation well and
giving exceedingly valuable guidance and suggestions were Mr. Mir Nasir Hossain,
President, FBCCI; Ms. Hua Du, Country Director, ADB Bangladesh Resident Mission;
Mr. Abdul-Muyeed Chowdhury, Chairman of the Board of Directors of SME Foundation
and Dr. Salehuddin Ahmed, Governor, Bangladesh Bank.

Halfway through the session, the Hon’ble Finance Advisor, accompanied by the Chair-
person and all the other dignitaries, examined, with obvious interest, several features of
the content management system before, finally, declaring the SME Web Portal open.
Speaking on the occasion, the Hon’ble Finance Advisor appraised his About SMEF
The Small & Medium Enterprise Foundation (SMEF) was formally inaugurated today,
July 17, 2007, by Dr. A. B. Mirza Md. Azizul Islam, Hon’ble Advisor, ministries of
Finance, Commerce, Post & Telecommunications, Government of the People’s Republic
of Bangladesh at a ceremony held at the Hotel Sonargaon, Dhaka.

The SME Foundation is an independent center of excellence created and generously

capitalized by the Government of Bangladesh to the tune of a total endowment of Tk. 2
billion. The inaugural was presided over by Mrs. Geetiara Shafiya Chowdhury, Hon’ble
Advisor, ministries of Industry, Jute and Textiles, Children & Women Affairs and Social
Welfare, Government of the People’s Republic of Bangladesh. Dr. Md. Nurul Amin,
Secretary, Ministry of Industries, originally set the proceedings off by delivering an
address of welcome. The Hon’ble Finance Advisor also formally launched also at the
same time Small & Medium Enterprise Web Portal (SMEWP) and Small & Medium
Enterprise Helpline Centers, two of the deliverables within the framework of Small &
Medium Enterprise Sector Development Programme (SMESDP), the ADB-assisted
technical assistance (TA) project being implemented by the Ministry of Industries.
Thirty-two such helpline centers would from now be operating in twenty-five districts of
Bangladesh.

Special Guests who also spoke on the occasion, wishing the SME Foundation well and
giving exceedingly valuable guidance and suggestions were Mr. Mir Nasir Hossain,
President, FBCCI; Ms. Hua Du, Country Director, ADB Bangladesh Resident Mission;
Mr. Abdul-Muyeed Chowdhury, Chairman of the Board of Directors of SME Foundation
and Dr. Salehuddin Ahmed, Governor, Bangladesh Bank.

Halfway through the session, the Hon’ble Finance Advisor, accompanied by the Chair-
person and all the other dignitaries, examined, with obvious interest, several features of
the content management system before, finally, declaring the SME Web Portal open.
Speaking on the occasion, the Hon’ble Finance Advisor appraised his audience about the
great importance the Government attaches to the subject of the development of SMEs in
the country. He reminded the audience that he was recently called upon by a delegation
representing the community of women entrepreneurs. The women entrepreneurs
represented, with some visible angst, how difficult it is to succeed in the highly
competitive world of SMEs in Bangladesh when one’s bank charges on interest rates as
high as 17% to 22%.

The Hon’ble Finance Advisor appeared to commiserate with the women entrepreneurs’
delegation, whereupon he urged the managing directors of private banks present in his
audience to do everything in their power to charge SMEs in general and women
entrepreneurs in particular interest rates that are affordable. The Hon’ble Finance Advisor
expressed his conviction that the under the leadership with a proven track record, the
SMEF would more than meet the high expectation the Government and the nation have
about it. The Advisor also informed the audience that an orderly transference of the Small
Enterprise Fund (SEF) from the Bangladesh Bank to the SMEF was already in train.
The Hon’ble Advisor of Industry, Mrs Chowdhury, said that as well as carefully going
into the challenging area of credit wholesaling, where prudential guidelines of the
Bangladesh Bank would have to be upheld meticulously, the SMEF would need to be
very diligent, highly professional and innovative in both generating a facilitation capacity
to have business creation services and business development services delivered to SMEs
in general and women entrepreneurs in particular in a demand-driven manner.

Ms Hua Du said in her address that, while it is relatively easy to create a new institution,
what really count for a lot more is to run it most prudently, efficiently, astutely, for that is
the only way in which an institution can sustain itself and then can grow in others’ regard
and esteem. She issued a mild note of caution that the SMEF would be well-advised to
get involved in wholesaling credit very very gingerly and cautiously. She also advised the
SMEF to ensure that it makes the utmost effort to involve, empower, upgrade and
collaborate with the private sector and not crowd it out.

Mr. Abdul-Muyeed Chowdhury responded by saying that the SMEF has every desire to
make the private sector the principal change agent on the ground. SMEF, he said,
constantly would remind itself that it is a catalyst, a facilitation platform, and wants to be
remembered by its work. Public-private partnership is the shibboleth, the imprimatur, by
which the SMEF would want to be recognized.

Mission

The abiding mission of the Government of the People’s Republic of Bangladesh as regards the
development of SMEs is the primacy of pro-poor development of Bangladesh’s small and
medium enterprises (SMEs) in the present age of unceasing globalization, and all-consuming re-
structuring. This flagship mission translates into more measureable goals of spurring growth rate
of SMEs, upgrading capacities and productivities by existing SMEs and providing stimulus to the
emergence of new enterprises, their capacity to generate employment and reduce poverty.

Vision

Amid an environment characterized by increasingly relentless integration of markets,

internationalization of production network by leading and name-brand companies, lowering
business threshold for alternative competitive entry, and therefore exacting competition,
Government of Bangladesh’s core business values in championing the cause of SMEs are (i) the
creation and tasking of a genuinely independent brains-trust comprising a professionally rich
trove of expertise; (b) a level policy playing field for all sizes of enterprises, especially small
enterprises; (c) the creation, updating and dissemination around the clock of an integrated
information- and –evidence base which not just informs but is also in tern informed by the
community of its users; (d) the discovery and inculcation of a holistic ‘systems-approach’
regarding what it takes to enable SMEs in Bangladesh to draw level with, even at times leap-frog,
their competition; (e) unstinted and transparent execution of a plan of action that is well-informed
and yet consensual, future-facing and yet well-embedded in today’s context, opportunities and
constraints. It is a milestone development that the Government of Bangladesh has entrusted the
SMEF with implementing the SME Policy Strategies - 2005 that will be adopted by the
Government from time to time. In no countries of Asia has incumbent governments vested so
much executive sovereignty along with generous start-up budgetary support for an institution
with so much indepdence in the name of spurring the development of SMEs.

Objectives

To promote, support, strengthen and encourage the growth and development of SMEsin all
productive sectors of the economy, including the service sector,throughout the country.

To plan, program and financeinterventions for delivery by private sector organizations, including
chambers,associations, trade bodies, research and development institutions includinguniversities,
consultancy companies and professionals.

To institute SME Awards in order to promotecompetitiveness among the SMEs.

To facilitate SME access to finance bycreating and supporting appropriate strategies and
institutions in order toencourage and promote potential SME booster sub-sectors, but shall not
sanctionand/or deal in direct credit delivery to SME clients. However, SMEF may alsopromote,
select and supply fund to banks and financial institutions having wideoutreach throughout the
country for onward lending to SME clients all over thecountry.

To rationalize public sector approaches andsupport structures for SME development through
systematic capacity assessmentand interventions for organizational development and institutional
capacitybuilding.

Tocreate a pro-growth and pro-poor business environment in which both existingand aspiring
SME entrepreneurs, affordably.

find what they need---namely, access tofinance, information, counseling, mentoring,

marketing, and design know-how,networking, linkages, representation andthe power of
agency to succeed.

Tocreate appropriate incentives, mechanisms and support structures to facilitatethe

formation of new enterprises, ensuring enterprise competitiveness, andpromoting
sustained growth of existing businesses.

Toidentify and report policy anomalies, market and institutional failures thatare
prejudicial to the legitimate interests of SMEs, based on in-depthresearch, and
stakeholder consultations.

Toencourage improvement in SME business environment by gradually becoming aone-

stop facilitation window center. for SMEs in getting licenses and approvalsfrom various
agencies and department, and in accessing other required services.

Tocreate a database and provide all needed information about SMEs to investorsand
service providers

To encourage and motivate financialinstitutions, industry and trade associations, civil-

society institutions andbodies, including SMEs own cooperative “bodies” to
meaningfully enhance theircapacities for SME development

To implement a strategy for facilitatingapplied R & D while harnessing the synergies

existing within thepublic-sector, corporate and private sector and the research and
university system

Toactively foster greater collaboration, in both design and commercialization,between

industry, civil-society and academia in the interest of harmoniousdevelopment of human
resources, and delivery systems for SME development.
SME Banking in Bangladesh

Name of Bank Product Loan size

BRAC Bank Prapti account Any institution can open this
account in the name of the
Institution Opening balance only
BDT. 10,000.00 & BDT. 5000
Anonno Rin From BDT 3 lac to BDT 9.5 lac
Prothoma Rin From minimum BDT 3 lac up to
maximum of BDT 9.5 lac
Digoon Rin Minimum of 5 lac to maximum
of 30 lac BDT
Apurbo Rin Starting from BDT 8 lac to
maximum of BDT 30 lac
Pathshala Rin Minimum BDT 3 lac to
maximum BDT 30 lac
Aroggo Rin Minimum of 3 lac to maximum
of 30 lac
Trust Bank AGRI-BUSINESS LOAN Loan facility from TK. 2.00 lac
to 100.00 lac to setup Agro
Processing Units or to meet up
working
Entrepreneurship Any Business Purpose Loan
Development from Tk. 2.00 lac to 20.00 lac to
purchase Machinery &
Equipment or to meet up
Working Capital requirement.
Loan For Light Engineering Loan facility from Tk. 2.00 lac
to Tk. 50.00 lac for Working
Capital or to purchase
Machinery & Equipment.
Loan For Poultry Farm Loan facility from Tk. 2.00 lac
to Tk. 20.00 lac for Poultry
Business to meet up working
capital requirement.
Loan For Shopkeepers lac to To purchase inventory
Shopkeepers may enjoy credit
facility from Tk. 2.00 50.00 lac.
Peak Seasons Loan Loan Facility from Tk.2.00 lac
to 20.00 lac for purchasing
inventory to meet peak season's
demand for different festivals.
Women Enterpreneur Loan Any business purpose loan from
Tk.1.00 lac to Tk. 50.00 lac
Dhaka Bank Cash Credit
 Overdraft
Standard Bank SMALL ENTERPRISE Limit 0.50 lac to 10.00 lac
FINANCING
BEE-HATCHARY: Limit Tk. 0.50 Lac to 5 lac .
SELF EMPLOYED Limit 0.50 lac to 10.00 lac
PROFESSIONAL LOAN:
MUSHROOM Limit Tk. 0.50 Lac to 5 lac
PRODUCTION AND
MARKETING:
Churi & Immitation Limit 0.50 lac to 10.00 lac
JWELLERY :
Weaving: Limit Tk1.00 lac to 5.00 lac.
Varieties Handicrafts: Limit Tk. 1.00 lac to Tk.5.00
lac.
Hardware & Software . Limit Tk. 50 thousand to Tk.
servicing : 5.00 lac.
Rot Iron : Limit Tk. 1.00 lac to Tk. 5.00
lac.
Conventional Wooden Limit 1.00 lac to 5.00 lac.
Furniture
Bakery/Grocery/Stationary/ Limit maximum 1.00 Lac.
Fast Food/Hotel/Restaurant:
Decorator: Limit Tk.1.00 lac to 3.00 lac.
Potteries: Limit Tk.50,000.00 to 2.00 lac.
Ledh Machine Factory Limit TK.1 Lac to 5 Lac.
Welding Machine/Grill Limit TK. 1.00 Lac to 5.00 Lac
workshop
National Bank ltd. Benefits Maximum Tk.3.00 lac (Festival
Scheme) and Maximum Tk.5.00
lac (Small Business Scheme) .
Agrani Bank Industrial Credit
Rural Credit
Janata Bank SME Loan Minimum : TK. 50,000/-
Maximum : TK. 20,00,00,000/-
Dutch-Bangla Bank Cash Credit Minimum : TK. 100,000/-
Maximum : TK. 5,000,000/-
Clean : Up to Tk. 500,000/-
Collateralized : Up to Tk.
5,000,000/-
Term Loan Minimum : TK. 100,000/-
Maximum : TK. 5,000,000/-
Clean : Up to Tk. 500,000/-
Collateralized : Up to Tk.
5,000,000/-
Financing Scheme Maximum TK. 500,000/-
South East Bank SME Credit For small enterprise: Tk.2.00 lac
 to Tk.30.00 lac For medium
enterprise: Tk.2.00 lac to
Tk.50.00 lac
Estern Bank EBL Agrim Any legal business purpose, loan
facility minimum BDT 200,000
- maximum BDT 950,000
EBL Uddog Any legal business purpose, loan
minimum BDT600,0000 -
maximum BDT 5,000,000
EBL ASha Any business purpose loan from
Tk. 200,000 to Tk. 990,000
EBL Puji Any business purpose loan from
Tk. 500,000 to Tk. 5,000,000
EBL Banijjo Credit facility up to BDT
20,000,000 to any legitimate
import business
EBL Mukti Credit facility up to BDT
300,000 (three lac) in any
legitimate business
EBL Subidha Minimum account opening
amount BDT 100,000 Minimum
deposit requirement for interest
earning BDT 100,000
Prime Bank Restricted Business For small enterprise Maximum
Tk.2, 50,000/- For medium
enterprise : Maximum Tk.75,
00,000/ No loan proposal for
less than Tk.1, 00,000/- be
entertained.
Shahjalal Islami Prottasha for Small Minimum Tk. 2.00 lac and
Bank Enterprises maximum Tk. 30.00 lac
Prottasha for Women Minimum Tk. 2.00 lac and
Entrepreneur maximum Tk. 15.00 lac
The City Bank City Muldhan Loan amount ranging from Tk.
500,000 to Tk. 40,00,000
City Sheba Loan amount ranging from Tk.
500,000 to Tk. 40,00,000
City Shulov .Loan amount ranging from Tk.
500,000 to Tk. 40,00,000
City Munafa .Loan amount ranging from Tk.
500,000 to Tk. 40,00,000
Sonali Bank SME LOAN Minimum Tk. 50,000 and
maximum Tk. 10,00,00,000 core
Islami Bank Small Business Investment
Bangladesh Scheme
Transport Invest Scheme
 Women Enterpreneurs Minimum Tk. 2,00,000 and
Investment Scheme maximum Tk. 30,00,000
Investing SMEs Minimum Tk. 2,00,000 and
maximum Tk. 30,00,000
AB Bank Choto Punji Loan maximum Tk. 10,00,000
Digun Loan maximum Tk. 1,00,00,000
Aparajita Loan maximum Tk. 2,00,00,000
Prasar Loan maximum Tk. 5,00,00,000
Gati Loan maximum Tk. 5,00,00,000
Sathi Loan maximum Tk. 5,00,00,000
Bank Asia Sacchanda Loan From BDT 3 lac to BDT 50 lac
Pubali Bank Karma Uddog Loan From BDT 3 lac to BDT 10 lac
Sujan Loan From BDT 3 lac to BDT 10 lac
Subarno Loan From BDT 3 lac to BDT 10 lac
Standard Business Installment Loan Maximum Loan: BDT 7,000,000
Chartered Bank (Seventy Lacs) only
Minimum Loan: BDT 1,000,000
(Ten Lacs) only
Orjon Maximum Loan: BDT 7,000,000
(Seventy Lacs) only
Minimum Loan: BDT 1,000,000
(Ten Lacs) only
Loan Against Property Maximum Loan: BDT
28,000,000 (taka two crore
eighty lac) only Minimum Loan:
BDT 1,400,000 (taka fourteen
lac) only
Trade and Working Capital Facilities of up to BDT
Financing 120,000,000 (taka twelve crore)
only for single customers and up
to BDT 150,000,000 (taka
fifteen crore) only for groups
Transaction Services
IDLC Small Business Loan From BDT 3 lac to BDT 50 lac
Women Entrepreneur Loan From BDT 3 lac to BDT 50 lac
Medium Business Loan From BDT 3 lac to BDT 50 lac