Second from right, Shafique-ul-Azam, managing director of Midas Financing, receives a dummy cheque for Tk 5 crore as SME loan from Dilip Barua, industries minister and chairperson of SME Foundation, at a programme in Dhaka yesterday. Syed Rezwanul Kabir, managing director of the foundation, and Rokia Afzal Rahman, chairperson of Midas Financing, are also seen.Photo: STAR

The SME Foundation yesterday lent Tk 5 crore to Midas Financing Ltd, which will provide low-cost and mortgage-free credit to small and medium entrepreneurs in the light engineering sector.
The state-run agency will provide the fund at 4 percent interest, and the non-bank financial institution will charge 9 percent for the loans to the SMEs in the potential sector.
Industries Minister Dilip Barua, also the chairperson of the foundation, made the disclosure during an agreement signing ceremony between Midas and the foundation at the latter's office in the city.
Syed Rezwanul Kabir, managing director and chief executive of the foundation, and Shafique-ul-Azam, managing director of Midas Financing, penned the deal.
Rokia Afzal Rahman, chairperson of the Midas Financing, said this loan would help the SMEs at the grass-root level.
Barua said the SMEs struggle to get funds and have a limited access to the country's banking system. Banks also do not want to finance them as sometimes they are seen as risky borrowers, he said.
"The government is committed to provide loans to them at single digit interest rates," he said.
Dalilur Rahman Sarker, manager of Midas Financing at Bogra, said the light engineering sector has a huge potential in the area, which has already provided jobs to more than 100,000 people -- directly and indirectly -- alone in the northern district.
There are 1,200 light engineering industries in Bogra, which can manufacture majority machineries and equipment needed for the agriculture, garments, pharma-ceuticals and other sectors.
"Agriculture pumps are also being exported to countries
such as Nepal, Bhutan and India," said Sarker.
SM Shaheen Anwar, deputy general manager of the foundation, also spoke.