Home ›› 20 Jul 2022 ›› Front
The Bangladesh Bank on Tuesday unveiled a Tk 25,000 crore refinance scheme with a three-year tenure for the cottage, micro, small and medium enterprise (CMSME) sector.
Borrowers will get term loans at a maximum interest rate of 7 per cent under the scheme while lenders will receive funds at 2 per cent from the central bank.
Banks and non-bank financial institutions can disburse loans under the scheme through branches or sub-branches or agent banking or mobile financial services (MFS), said the central bank’s SME and Special Programmes Department in a circular on Tuesday.
The circular said the new scheme was aimed at creating easy access to funds for CMSME entrepreneurs. It also said the fund size would be increased, if needed.
Defaulters will not be allowed to borrow under the scheme. Before lending, banks must ensure whether the clients have any default loans.
At least 75 per cent of the total loans under the scheme must be disbursed among cottage, micro and small entrepreneurs while the remaining 25 per cent should go to medium entrepreneurs, the circular said.
Besides, 70 per cent of the total loans should be distributed to the production and service sectors and the remaining 30 per cent to trade.
The loans will have a maximum grace period of six months. However, their tenure will be a maximum of five years with the grace period.
Banks and non-bank financial institutions have to sign an agreement with the Bangladesh Bank to disburse loans under the scheme.
However, only those having non-performing loans of less than 10 per cent and a minimum business experience of three years will be allowed to participate in the scheme.
Every bank and non-bank financial institution has to inform the Bangladesh Bank regularly about the latest information on their distributed loans under the scheme.
