BRAC Bank Limited and SME Foundation signed an agreement to provide SME loan to the farmers and traders of Agar, a non-traditional export-oriented item for making scent.
Under the agreement, BRAC Bank and the SME Foundation will partner to offer small business finance to Agar producers in Sujanagar Union under Borolekha Upazila, in Moulvibazar district.
According to SME Foundation, Agar Atar Cluster in Moulvibazar earns Taka 60 crore in foreign currency a year, employs around 45,000 people in around 350 processing factories.
The financing by BRAC Bank will play a catalytic role in boosting the export earnings of the Agar Atar Cluster and facilitate diversification of the country’s export basket.
Selim R. F. Hussain, Managing Director and CEO, BRAC Bank, and Md. Safiqul Islam, Managing Director, SME Foundation, signed the agreement at SME Foundation Office in Dhaka on August 18, 2016.
The agreement will be valid for four years. The entrepreneurs can avail loan ranging from Taka 50,000 to Taka 10 lakh without any collateral. Agar oil, Agar wood and Agar dust are primarily exported to the Middle East countries, reports BSS.