Home ›› 23 Nov 2022 ›› Front
Micro and small enterprises in the trading sector will now be eligible for credit guarantee if they borrow from the Tk 25,000 crore refinance scheme created for the Cottage, Micro, Small and Medium Enterprise (CMSME) sector.
Micro traders borrowing between Tk 25,000 and Tk 25 lakh and small ones borrowing between Tk 25,000 and Tk 1 crore will get the facility, said the Bangladesh Bank’s Credit Guarantee Department in a circular on Tuesday.
Earlier, micro and small businesses in the service and productive industrial sectors were eligible for the facility.
The circular said cottage and micro enterprises in the productive and service sectors are already benefiting from credit guarantee against loans between Tk 25,000 and Tk 1 crore from the refinance scheme.
On the other hand, credit guarantee is available in the small enterprise sector for a minimum loan of Tk 1 lakh to a maximum of Tk 3 crore as well as in the service sector for a minimum of Tk 25,000 to a maximum of Tk 1 crore.
Apart from this, medium enterprises in the productive industrial sector will get the benefit against loans ranging from Tk 1 lakh to a maximum of Tk 5 crore. Such enterprises in the service sector will get the benefit against loans ranging from Tk 1 lakh to a maximum of Tk 2 crore, the circular read.
The Bangladesh Bank announced the Credit Guarantee Scheme policy for the CMSE sector on July 27 in 2020. The policy said credit guarantee would be available only for working capital in the CMSE sector.
But the entire CMSME sector was adversely affected by the Covid-19 pandemic. Apart from that, cottage, micro, and small entrepreneurs often take out not only short-term loans but also borrow working capital.
That is why the credit guarantee scheme was expanded to include working capital as well as term loans.
