MSMEs as partners, not just borrowers anymore

The Daily Star (TDS): How do you assess the current state of the MSME sector in Bangladesh, and what role do you think banks can play in accelerating its growth?

Mirza Elias Uddin Ahmed (MEUA): The MSME sector stands as the backbone of our national economy. It contributes significantly to employment, income generation, and regional development. Despite macroeconomic challenges and global uncertainties, Bangladesh's MSME segment has shown consistent resilience and adaptability. At Jamuna Bank, we view MSMEs not just as borrowers but as partners in national progress.

Over the past three years, we have supported more than 8,000 MSME clients annually. In 2024 alone, we served 8,340 clients with a total outstanding of BDT 2,143.27 crore. Our MSME loan disbursement reached BDT 3,175.34 crore across 23,092 accounts. This reflects both scale and deep market trust. The MSME sector's strength lies in its diversity—our clients span trading, manufacturing, and service sectors. We remain committed to widening access and deepening impact.

TDS: What are the major challenges MSMEs face in accessing finance, and how is your bank addressing these issues?

MEUA: Access to finance remains a top barrier for MSMEs, especially at the micro and cottage levels. Many businesses lack formal records or collateral. Informality, limited awareness of financial products, and lack of credit history often hinder their journey.

At Jamuna Bank, we've designed practical solutions. We've introduced fast-track loan processing, with decisions made in 3 to 5 days at head office level and 7 days at branches. Our approval rate stands at 91%, with rejections as low as 9%.

TDS: Does your bank have any dedicated products, financial literacy programmes, or credit guarantee schemes targeted at MSMEs? Please share key initiatives.

MEUA: At Jamuna Bank, we have developed a comprehensive and diversified product suite specifically designed for the MSME sector. Currently, we offer 24 dedicated loan products that cater to the distinct needs of small and medium enterprises across different sectors and growth stages.

Among our flagship offerings are:

•   Jamuna SME Startup – designed for new entrepreneurs entering the business world with limited resources but high potential.

•   SME Nari Uddogh – tailored for women entrepreneurs, offering flexible repayment terms, low processing time, and advisory support.

•   Jamuna Swapno – created for small-scale traders and micro-business owners to scale operations.

•   Jamuna Griho – finance for building semi-pucca (tin shade) residences in labour-intensive areas for commercial purposes.

We maintain active engagement with Bangladesh Bank and fully utilise the Credit Guarantee Scheme (CGS) to extend collateral-free financing to eligible MSME borrowers. At present, we are disbursing loans under BB's refinance scheme for women entrepreneurs, as well as participating in the pre-finance facility worth Tk 25,000 crore, also covered under CGS. These partnerships allow us to reduce risk while expanding outreach to first-time or underserved borrowers.

Our financial literacy programmes are integrated into our social responsibility strategy and run across various parts of the country. As part of our 2025 initiative, we conducted large-scale awareness campaigns in Moulvibazar district, targeting 32 schools in Sreemangal, Kulaura, and Borolekha upazilas. Over 9,800 students participated in these events. This programme doesn't end with the students—we actively encourage them to carry this awareness back to their families, helping build a savings culture at the grassroots level.

TDS: How has your bank leveraged technology or digital banking solutions to improve outreach and services to MSMEs, particularly in semi-urban and rural areas?

MEUA: At Jamuna Bank, we recognise that real inclusion in today's economy requires both physical and digital access. That's why we are actively expanding our services through agent banking, which plays a crucial role in reaching MSME clients in rural and semi-urban locations.

Through agent banking, local entrepreneurs—many of whom previously operated outside the formal banking system—can now access financing, make deposits or withdrawals, and receive advisory services without visiting a branch.

In parallel, we are developing a dedicated digital platform exclusively for our CMSME clients. This system will enable online loan applications with guided input steps, real-time loan status tracking, automated notifications and document uploads, as well as future integration with mobile and internet banking features.

Our goal is to ensure that every MSME—whether in a metro centre or a remote village—can access banking solutions with equal ease, speed, and confidence.

TDS: What steps is your institution taking to support women-led MSMEs and promote financial inclusion among underrepresented segments?

MEUA: Women entrepreneurs hold great promise in reshaping our MSME landscape. Jamuna Bank actively promotes financial inclusion for women. As of 2024, we have disbursed BDT 377.99 crore to 1,751 women-led MSMEs. This represents 2.8% of our total MSME portfolio.

Our flagship success story is Aamal Foods, founded by Ms Rezina Afrose. Her journey from a student entrepreneur to leading one of Bangladesh's fastest-growing bakery chains is remarkable. With our financial support, Aamal Foods expanded across Dhaka, opened showrooms, and set up a production unit. Her vision, backed by our financing, is now a brand delivering quality and safety nationwide. Such stories motivate us to do more.

TDS: Looking ahead, what policy reforms or collaborative efforts between banks and the government would you recommend to ensure sustainable development of Bangladesh's MSME ecosystem?

MEUA: For sustained MSME growth, we recommend enhanced regulatory support and simplified tax policies for small enterprises. Policymakers should consider subsidised interest rates for start-ups and ease of collateralisation.

Stronger collaboration between banks, Bangladesh Bank, and SME Foundation is essential. Government-backed credit schemes, when designed efficiently, can significantly increase bank participation.

Jamuna Bank is ready to lead, collaborate, and innovate in this space. Together, we can build a stronger, more inclusive MSME ecosystem that supports dreams, drives jobs, and sustains national progress.