Small and medium-sized enterprises in Bangladesh are facing significant hurdles in obtaining adequate credit from private banks. Hat Bakso, a souvenir manufacturer, recently sought a 2 million taka loan for operational costs, but the bank offered only a fraction of that amount. While lenders now demand substantial collateral covering 70 to 80 percent of asset value, the business owner notes that previous financing was easier to secure despite the firm's lack of physical assets. Although the company maintains a consistent record of timely interest payments and active daily transactions, banks remain hesitant to provide full funding. This shift in lending policy leaves emerging entrepreneurs unable to access the capital required to sustain or expand their business operations, creating a challenging environment for new market participants who lack significant collateral.
Source : Prothom Alo
Photo : Prothom Alo
