Tk 500cr refinance scheme for small bank savers

The Bangladesh Bank on Sunday formed Tk 500 crore refinance scheme for small bank savers. They are – Tk10, Tk50 and Tk100 account holder beneficiaries’ which include marginal, landless farmers, low income professionals and school banking account holders.

As income generating activities of marginalized people and small savers in the country were hampered due to the second wave of the Covid-19 pandemic. This had prompted the central bank to form the scheme, said a high official of the Bangladesh Bank told The Business Post.

The tenure of the scheme will be five years and BB will provide the loans from its own funds.

However, loans defaulters will not be able to get loans from the fund.

The respective account holder beneficiaries will be able to get the loans from the fund at 7 per cent interest rate.

The loan facility ceiling for a single client has been fixed at Tk 5 lakh, the notice mentioned.

Banks will be able to get the fund from the BB at 1 per cent interest rate, as per the BB notice.

The tenure of the loans would be highest of three years and a grace period of maximum six month at the bank and client level.

The BB said that the banks could not impose any additional fees or charges to issue loans from the fund.

At the same time, banks will not be able to take any collateral against the loans from the fund, but will be able to take personal guarantee for issuing the loans.

Around 50 categories of rural small traders and entrepreneurs, such as blacksmith, goldsmith, small grocers, vegetable farmers, poultry farmers, mason, carpenter, painter, cottage industries and handicrafts, will be eligible for the fiscal benefit.

Besides, low-income professionals, and small farmers affected by natural calamities have also been included in the latest package of the Bangladesh Bank.