BB reduces interest rate on loans from CMSMEs refinancing fund

Bangladesh Bank has issued a circular on Monday reducing interest rate on loans disbursed from the refinancing fund set up to support cottage, micro, small and medium enterprises (CMSMEs).

According to the circular interest rate on loans disbursed at the individual level will be a maximum of 6%.

Banks and financial institutions disbursing loans from the fund will pay 2% interest to the central bank, which is a 2% cut compared to the previous 4%.

The new rate would be effective from Nov 18.