BRAC Bank has announced a groundbreaking initiative to support Cottage, Micro, Small, and Medium Enterprises (CMSMEs) by introducing its lowest-ever lending rate of 13.75%, aiming to make business loans more accessible and affordable for entrepreneurs across Bangladesh. This move is expected to create significant opportunities for small business owners who often face challenges in securing financing due to high interest rates and limited collateral options. The reduced rate applies to a wide range of CMSME borrowers, including startups, women-led businesses, and rural enterprises, ensuring that entrepreneurs in both urban and rural areas can benefit from better access to capital. BRAC Bank’s leadership stated that the decision aligns with its commitment to promote inclusive growth, drive economic development, and help small businesses scale operations sustainably. The bank has also simplified the application process, enabling quicker loan approvals and reducing paperwork to make the financing journey smoother for entrepreneurs. By lowering the cost of borrowing, the initiative is set to encourage investment in production, innovation, and job creation, which will, in turn, contribute to the country’s GDP growth. Industry experts believe this step will have a ripple effect, encouraging other financial institutions to reconsider their lending rates and terms for small enterprises. The bank has also integrated financial literacy programs alongside this offering to ensure borrowers can manage funds effectively and make the most of their investment. With Bangladesh’s CMSME sector contributing significantly to employment and regional development, easier access to affordable credit is expected to unlock new business potential, especially in underserved markets. BRAC Bank’s move comes at a time when many small businesses are recovering from economic disruptions and are seeking ways to expand operations, modernize technology, and improve product quality. Entrepreneurs across manufacturing, retail, agriculture-linked businesses, and service sectors stand to benefit from this historic rate cut, which not only reduces their financial burden but also boosts confidence to take calculated risks for growth. This development marks a significant milestone in Bangladesh’s banking sector and reinforces the role of CMSMEs as a driving force for sustainable economic progress, with BRAC Bank positioning itself as a frontrunner in fostering an entrepreneur-friendly financial ecosystem.
