Small Enterprise Credit Program (SECP)

The bank has introduced a special credit program titled "RAKUB-Small Enterprise Credit Program (SECP)". The project aims at promotion of entrepreneurship in agro-based small enterprises and non-farm activities in Northwest region of Bangladesh. Norwegian government and RAKUB has jointly provided credit fund for the project. Ministry of Finance, Government of Bangladesh monitors the project activities. Maximum credit limit for a single enterprise has been fixed at Taka 0.5 million.

Salient features of the project
Project cost
Total cost of project Tk. 502.08 m
Norweigian grant Tk. 256.62 m
RAKUB's contribution Tk. 222.12 m
Distribution of fund:
Technical assistance Tk. 98.56 m
Revolving loan fund Tk. 403.51 m

Objective of the project The main objective of the project is to create employment opportunities through development of small/micro enterprises. It gives priority to financing the women entrepreneurs' business and creating minimum 20% women entrepreneurs. The project would provide training, credit support and other related services to the entrepreneurs.
Target-entrepreneurs Entrepreneurs engaged in three types of activities, namely, manufacturing, trading & service providing would be considered. They must be trained before availing credit facilities.
Area of Operation Rajshahi, Natore, Naogoan, Chapai Nawabgonj, Bogra, Joypurhat, Pabna, Sirajgonj & Kurigram districts.
Entrepreneurs to be benefited Entrepreneurs have had credit facility and services from the project. Besides, the project has created around 43,000 new jobs related to entrepreneurs' business.
Contribution to the economy It has been generating income of the entrepreneurs and employees of the enterprises. It is estimated that non-farm income of the entrepreneurs will increase at least by 30%. The additional activities caused by this project will have positive impact on transport and other relevant service sectors. People associated with these ancillary sectors will contribute to the growth of GDP.
Transition Period The Ministry of Finance, Government of Bangladesh has approved the project as a subsidiary company of RAKUB entitled RAKUB-SME Financing Company Ltd. Required formalities to convert the project as a subsidiary company are under process. Therefore, the project is experiencing a transition period.
SECP: Position of Loan Disbursement & Recovery up to June 2014 (Fig. in Crore)
Loan Disbursement Recovery Rate of

Number Amount Number Amount Number Amount
60623 343.19 50105 334.19 97% 10510 78.03

Contact Project Director, RAKUB-Small Enterprise Credit Program (SECP), House#144, Sector#2, Upashahar Housing, Rajshahi. Phone:0721-762119