The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) teamed up with Bengal Commercial Bank today to extend loan assistance to help cottage, small and medium entrepreneurs (CSMEs) run their businesses.

FBCCI Secretary General Mohammad Mahfuzul Hoque and Managing Director of the Bengal Commercial Bank Tarik Morshed signed an agreement in this regard at the Dhaka office of the FBCCI, the federation said in a statement.

In 50 years of independence of Bangladesh, the contribution of the SME sector in the economy is not very large, but this sector has a great contribution in creating employment, FBCCI President Md Jashim Uddin said at the event.

The SME sector contributes around 40 per cent of the total employment of the country, he said.

The small entrepreneurs will be able to expand their businesses besides creating employments if they are provided with more financial support, he said.

"The non-governmental organisations have been collecting almost 100 per cent of the loans from rural areas even with high interest. If our banks show interest, it is possible to get money from small entrepreneurs easily. The SME entrepreneurs don't want to be defaulters."

The FBCCI president also urged the trade bodies to help small entrepreneurs to get loans on easy terms.

"We have already signed agreements with 15 associations to ensure that small and medium entrepreneurs get loans on easy terms," said Tarik Morshed.

"Last year, around 23 per cent of our disbursed loans went to the SME sector. We want to distribute at least 55 per cent to the SME sector this year," he said.

"That is why we have emphasised on setting up branches and sub-branches at the marginal level. We are going to open a new branch in Rangpur this month."

FBCCI Senior Vice President Mostofa Azad Chowdhury Babu also spoke.