Why Bank Prefer SME Financing?

SME is becoming the driving force of the economy in our country.  Now a day’s SME is considered as the employment generating machine which is fostering economic growth and development of our country.

Ø Refinancing Facilities from Bangladesh Bank;

Ø Risk diversification to large number of borrower;

Ø Low cost of fund than other sources of fund;

Ø Flexible repayment schedule;

Ø SME financing is respectively less complicated than general  term loan.

Ø Easy to communicate with borrower;

Ø Short processing time;

Ø SME Database and Market Segmentation Reporting; and

Ø Decentralization of delegation of power.