Bangladesh is a densely populated country. Job opportunity here is very scanty; Unemployment rate is approximately 40%. Population below poverty line is 36%. Therefore, it is the prime concern for the nation to generate income through creation of job opportunity & employment. Creation of job opportunity at large scale by us is not possible. What can be done better is to help self-employment through financial support. There are many small and medium entrepreneurs in the country that have innovative idea, spirit and potentiality to do something productive for local consumers as well as export abroad.

They can generate income and contribute to the GDP. They may also provide employment to other people. Development and growth of Small and Medium Enterprise is vital for national development. Such type of beneficial enterprises borrower can not go a long way for want of financial support because they have no access to institutional credit facilities, as they cannot provide collateral security as demanded for such credit facility.

Prime Bank Limited, is committed to play positive role in the overall socioeconomic development of the country. There is also a statement in the objective clause of Memorandum of Association of Prime Bank Limited as under:

To advance or lend money to the unemployed persons for self employment and rehabilitation in the Society.

To finance the Small and Cottage Industries for Industrialization and also to create employment opportunities”.

It may be mentioned here that as per decision of the Board of Directors in its 78th meeting held on 17.11.1999 a “Small & Medium Enterprise (SME) Cell” has already been established at Head Office under the Credit Division.

In respect of small businesses, an eminent American scholar Mr. John Naisbitt in his book “Rethinking the Future” remarked as under:

Now you can replicate quality anywhere in the world. So, the competitive differentiation comes from swiftness to market and innovation. And in this regard, small companies right down to the individual can beat big bureaucratic companies ten out of ten times. It is the small companies who are creating the global economy, not the fortune-500. 50% of United States exports are created by companies with 19(nineteen) or fewer employees. The global economy of the 21st century will be dominated by Small and Medium sized players.”

If we look at South East Asia, China, Taiwan, Hong Kong, South Korea etc we will find that Small and Medium Businesses are the real engine of growth in those countries.

In view of the above a credit scheme titled “Small and Medium Enterprise Credit Scheme” has been formulated as follows. It may also be mentioned that USAID has approved our bank to receive their guarantee facility to lend money to Small and Medium business Houses. 50% of losses, if any, be paid by USAID. Brief details are enclosed at Annexture-A.  

01.

To provide credit facilities to the small and medium size entrepreneurs located in Urban & Sub-urban areas and easily accessible by our Branches.

02.

To encourage the new and educated young entrepreneurs to undertake productive venture and demonstrate their creativity and thereby participate in the national development.  To flow credit for creation of employment and generation of income on a sustainable basis through development of small & medium enterprises.

03.

To assist potential entrepreneurs to take part in economic activities so that they can improve their living standard. 

04.

To reduce dependence on money lenders;  

05.

 To make the small & medium enterprises self– reliant;  

06.

To develop saving habit and making acquaintance with banking facilities.  

07.

To inspire for undertaking small projects for creation employment through income generating activities.  

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