Modhumoti Bank joins Tk5,000cr CMSME refinance scheme
Modhumoti Bank Enters Bangladesh Bank’s Tk5,000 Crore CMSME Refinance Programme
Bdbusinessdaily.com – Modhumoti Bank PLC has become a participant in Bangladesh Bank’s Tk5,000 crore Working Capital Refinance Fund, opening a new financing channel for cottage, micro, small and medium enterprises across Bangladesh.
The arrangement allows eligible CMSME clients of Modhumoti Bank to seek working-capital finance at a concessional annual interest rate of 9%. The fund is designed to help businesses access credit for their operating needs, an important consideration for enterprises that require regular cash flow to sustain day-to-day activity.
Agreement signed in Dhaka
The participation agreement was signed on 8 September at Bangladesh Bank’s head office in Dhaka. Bangladesh Bank had invited Modhumoti Bank to join the programme.
Md Anis Ur Rahman, Deputy Governor of Bangladesh Bank, chaired the signing ceremony. Md Shafiul Azam, Managing Director of Modhumoti Bank, signed for the bank, while Md Zabdul Islam, Director of Bangladesh Bank’s SME & Special Programmes Department, signed for the central bank.
The event was also attended by Arab Fazlur Rahman, Deputy Managing Director and Chief Business Officer of Modhumoti Bank, and Zahid Al Muntasir, Head of CMSME Business Support at the bank.
Bangladesh Bank Executive Director Nahid Rahman and Additional Director Shahanaj Pervin were present as well.
What the fund means for smaller enterprises
Working capital is the money a business uses to cover ongoing expenses and maintain normal operations. For CMSMEs, this can include meeting routine business commitments while continuing to serve customers and manage commercial activity.
By joining the refinance fund, Modhumoti Bank is positioned to offer qualifying borrowers financing through a central-bank-supported programme with a stated concessional rate. The availability of credit at 9% per year may give eligible firms a more affordable option when they need funds for operational purposes.
The initiative is focused on the CMSME segment, which includes businesses ranging from cottage and micro enterprises to small and medium-sized companies. These enterprises operate at different scales, but they can share a need for accessible financing that matches their working-capital requirements.
Eligibility remains central to the programme. Financing is available to customers who meet the applicable CMSME requirements, meaning the fund is not an automatic facility for every applicant. Businesses interested in the scheme would need to engage with Modhumoti Bank and satisfy the relevant conditions for financing.
Focus on wider access to affordable credit
Modhumoti Bank said that its involvement in the refinance programme would help broaden access to lower-cost working-capital funding. The bank also linked the move to the continued growth and development of Bangladesh’s CMSME sector.
For entrepreneurs and small-business operators, access to appropriately priced finance can influence how confidently they manage their regular business cycle. A working-capital facility is distinct from long-term funding for major expansion projects because it is intended to support the financial demands that arise through normal business operations.
The Tk5,000 crore fund represents a dedicated refinancing initiative for the sector. Modhumoti Bank’s participation adds another banking institution through which eligible CMSME customers can pursue support under the scheme.
The agreement also reflects coordination between the central bank’s SME and special programmes function and a commercial bank serving prospective borrowers. Bangladesh Bank provides the programme framework, while Modhumoti Bank can work directly with qualifying customers seeking finance under that framework.
A financing option for qualifying customers
The key feature for eligible clients is the concessional 9% annual interest rate attached to financing under the participation arrangement. For businesses assessing their funding options, the rate and the intended working-capital use of the facility are important details.
CMSME owners often have to balance immediate operating needs with longer-term business plans. A dedicated refinance programme can provide an avenue for addressing short-term funding needs without shifting the focus away from maintaining regular commercial activity.
With the agreement now in place, Modhumoti Bank can extend financing through Bangladesh Bank’s Tk5,000 crore Working Capital Refinance Fund to eligible CMSME customers. The programme aims to support wider availability of affordable funding and strengthen the financial foundations of businesses within Bangladesh’s cottage, micro, small and medium enterprise landscape.
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