Cenbank doubles SME refinance scheme size to encourage women entrepreneurs
The Bangladesh Bank has doubled the size of the refinance scheme for small and medium enterprises (SMEs) to Tk3,000 crore to facilitate women entrepreneurs.
The scheme, which was previously known as the Small Enterprise Refinance Scheme, has now been renamed as the Small Enterprise Refinance Scheme for Women Entrepreneurs, according to a circular issued by the central bank on Sunday.
Originally launched by the central bank in 2019, this refinancing scheme aims to elevate the overall lending to SMEs to 15% by the year 2024.
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Under the revised guidelines, the scheme allows individuals from all backgrounds to avail themselves of the loan facility. Notably, men will be subject to an interest rate of 7%, while women will benefit from a reduced interest rate of only 5%.
Moreover, banks will be able to procure funds from the central bank at interest rates of 0.5% for women and 3% for men.
As of December 2022, banks' total outstanding loans to the SME sector stood at Tk2,82,000 crore. However, the amount allocated to women entrepreneurs stands at a mere Tk15,039 crore, accounting for just 5.31% of the total loans disbursed.
