Abstract:
SME stands for small and medium enterprise which is very crucial for the overall economic growth of our country. Small and Medium Enterprises plays an important role for the development of our country and also contributes to the diversification of industrial sector. Hence, the importance and contribution of SME sector in the growth and development of our economy is immense. Moreover, SME contributes a large amount of invested capital in the financial market. As a result, the banks and many Non-Banking Financial Institutions are now dynamically contributing to this sector in order to develop themselves as well as to improve the financial condition of the country. IDLC finance Limited is holding the second largest SME financing portfolio over the country, so it is undoubtedly obvious that the financial institution has a huge contribution for the expansion and advancement of this sector. The SME Division of IDLC Finance Limited always prioritize and recognize the customer needs and actively participates toward the progress and advancement of the SME sector of Bangladesh. In this report, I tried to find out the actual definition and operation of SME from the perspective of Bangladesh, challenges and risks of SME financing by IDLC and other Non-Banking financial institutions and the present scenario of the SME financing in our country. Here, I focused on the contribution of IDLC Finance Limited in our SME sector as a Non-Banking Financial Institution. This report also includes a statistical representation of the performance of SME financing by IDLC. The main purpose of this report is to show a comparison of SME loan among the topmost NBFI’s of our country. For this reason, I considered Lanka Bangla Finance limited and IPDC (Industrial Promotion and Development Company) as the main competitors of IDLC and showed the competitive position of IDLC in terms of the two other competitors. This study will be really helpful for any further research regarding this topic.
