Participating in a webinar, titled, ‘Procedures of availing loan from SME stimulus package’ recently, organised jointly by the DCCI (Dhaka Chamber of Commerce & Industry) and the SME Foundation, experts stated that structural reforms were needed to ensure quick and easy loan disbursements for the cottage and micro industry and the SMEs (small and medium enterprises).
Speaking on the occasion, DCCI President Rizwan Rahman while underlining that banks should be made to comply with loan disbursement figures stipulated by the country’s central bank (Bangladesh Bank) maintained that medium enterprises have better bank relations compared to small entrepreneurs because the latter lacks documentation and thus underlined that a friendly fund and easy access to loan management systems are the needs of the day even as Chairperson of SME Foundation Masudur Rahman, on his part, stated that building the capacity of the SME entrepreneurs was vital for their financial inclusion while there are severe lacks in their financial literacy, especially of those outside Dhaka, and went on to add, “So, the framework for loan disbursements needs reform,” while opining that changes need to come about in the ease of doing business as soon as possible and various Government chambers should work towards building capacities of the SMEs.
The experts stated better bank relations would improve the cash flow as loans could be sanctioned based on the company’s working capital while also underlining the need for establishing a specialised SME bank and a comprehensive SME database along with policy reforms and easier documentation process to pave the way for the local industries in Bangladesh to flourish.