By AKM Kamal Uddin Chowdhury
DHAKA, March 10, 2021 (BSS) – The state owned Palli Sanchay Bank (PSB) has played an animated role to keep vibrant the rural economy to offset the COVID-19 shock by providing Small and Medium Enterprise (SME) loan under the stimulus package as announced by Prime Minister Sheikh Hasina with collateral-free loan activities.
PSB as part of its stimulus package has so far disbursed TK 250 crore SME loan among 55,000 entrepreneurs for lessening the sufferings of the people hit hard by the nationwide shutdown enforced to fend off the deadly virus.
Talking to BSS, PSB Managing Director M Akber Hossain said the bank in COVID-19 pandemic has continued their activities and provided all sorts of support to the rural people for keeping the rural economy as well as the national economy strong.
He said the bank attaches utmost importance on bringing disadvantageous group especially women entrepreneurs under institutional financial services by providing collateral-free loans to rural poor since its inception in 2014.
“Unlike many other banks, PSB encourages and helps underprivileged people in generating income and developing savings and eventually use their savings in providing more loans under its revolving credit scheme,” the Managing Director of the bank said.
He said PSB provides financial and banking supports only to the members of the Village Development Organization (VDO) who want to do income-generating activities under the ‘One House, One Farm’ project.
Currently, the bank has 41.49 lakh member families under 83,912 VDOs. The members have so far deposited nearly TK 1,908 crore in their bank accounts while the bank disbursed loans of over TK 12,017 crore for supporting their income-generating initiatives.
PSB has so far provided TK 1,216 crore loan under the SME, Grain Stock Loan and COVID Employment Loan at five per cent service charge.
The loans are paid out for cow fattening, raising milking cows, manufacturing agro-industrial tools, spare parts, farming vegetable, spices, establishing agro-based small industries, cottage industries, fisheries and nursery.
The amount of loan depends on the investment plan of the borrowers. However, a small entrepreneur can get a loan ranging from TK 10,000 to TK 50,000; medium entrepreneur from TK 50,000 to TK 300,000 and special entrepreneur from TK 300,000 to TK 100,000.
However the rate of interest for all loans is 8.0 per cent.
Besides, the VDO members can get benefit of different saving products of PSB including general savings, special savings, social security savings, student savings, term deposits and rural pension scheme.
Apart from the financial support, the bank is also imparting VDO members with necessary training to improve their skills in poultry, fisheries, livestock, nursery and agriculture farming.
Sharing experience on services available from PSB, Md Shahin, a graduate of the obscure sleepy little hamlet island Manpura, said he successfully set up a business outlet with the loan from the bank.
“I am a graduate. But I didn’t opt for a job. I had a dream to be an entrepreneur. So, I borrowed money from PSB under the ‘One House, One Farm’ project and opened a mobile servicing centre,” said Shahin, owner of the ‘Hasib Computer and Studio’.
At present, Shahin is self-reliant. He has four other employees in his studio. Even in the COVID-19 pandemic period he continued his business slickly with the help of PSB.
In the remote Nijhum Island, like many other entrepreneurs, Md Moinuddin and Md Fakrul Islam have changed their living standard by the help of PSB.
They thanked the PSB as well as the government for the support even in the situation like COVID-19 pandemic.
Dr Salehuddin Ahmed said the basic objective of the bank is to eradicate poverty from the country through maintaining the accounts and deposits of the members of the ‘One House, One Farm’ project.
“For achieving the target of the project, we will have to give special emphasis on selection of beneficiaries, services and monitoring activities,” he added.