Banks can give up to Tk5cr term loan from CMSME refinance scheme
Small entrepreneurs will enjoy the loan facility to the tune of up to Tk3 crore in the manufacturing sector.
Banks can now give medium enterprises up to Tk5 crore and Tk2 crore term loans in manufacturing and services sectors respectively from a Tk25,000 crore refinance scheme set up by the central bank.
Apart from this, cottage and micro-entrepreneurs will avail of a maximum loan of Tk1 crore in the service sector. At the same time, small entrepreneurs will enjoy the loan facility to the tune of up to Tk3 crore in the manufacturing sector.
In a circular on Wednesday, the Bangladesh Bank provided the Cottage, Micro, Small and Medium Enterprises (CMSMEs) with the term loan facility from the refinance scheme it had announced on 19 July for the sector.
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According to a circular of the central bank's SME and Special Programmes Department, the three-year fund can be extended if necessary. Under the scheme, banks and financial institutions can charge a maximum of 7% interest from borrowers.
In addition, they will get refinancing at a 2% interest from the Bangladesh Bank, which will collect the refinancing amount along with interest from banks and financial institutions quarterly, said the circular issued on 19 July.
Banks and financial institutions have to distribute a minimum of 75% of the total loan disbursed under the scheme among cottage, micro and small entrepreneurs and a maximum of 25% can be distributed among medium entrepreneurs.
Besides, at least 70% of loans can be given to the manufacturing and services sector and a maximum of 30% to the business sector. Defaulting borrowers will not get loans under this scheme.
