SME banking of BRAC Bank Limited

Abstract

The pillar of Bangladesh’s overall economy is Small and Medium Sized Enterprises and Women entrepreneurs. This sectors are serving a substantial role in improving our overall economy. To reduce the poverty level and increase the employment of the nation, SMEs are playing significant role in Bangladesh. In developed and developing regions like Bangladesh, SMEs are especially appropriate because they can provide enormous job opportunities with less spending. It increases the GDP growth rate and employment rate of Bangladesh as well. But SMEs in overall world along with Bangladesh are not treated well. They are facing a lot of problem in accessing loan which affects the growth and success of SMEs as well as the economy of Bangladesh. BRAC Bank Limited is the first bank in Bangladesh who started its journey with the vision of helping this SME sectors and the women entrepreneurs to expend the development of the SMEs, empower the women at the same time develop the economy of the country. SME’s ability to create, expand, maintain and reinforce themselves depends strongly on their ability to receive and regulate financing. The effective way of generating funds to attain the objectives for SMEs would be trough bank loans. BBL started small ticket loan system for SMEs to develop and expand their business as per their requirements. This paper is therefore, a try to evaluate the overall performance of SME Banking of BRAC Bank Limited, what are the benefits BBL is offering to SMEs, what are the opportunities and challenges banks and SMEs both are facing while financing loans and what could be the possible solutions for those challenges.