BB increases refinance scheme for small traders, low-income people to Tk750cr
At least 25% of the total loans will be disbursed to women borrowers or entrepreneurs
The central bank has announced a significant increase in its refinance scheme for small traders and low-income people, raising the allocation by Tk250 crore to Tk750 crore.
The Financial Inclusion Department (FID) of the Bangladesh Bank issued a circular in this regard today (29 September).
This move aims to benefit underprivileged groups such as marginal or landless farmers, low-income people, school banking account holders, and small businessmen.
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The scheme was initially launched in 2021 with Tk500 crore to promote financial inclusion among these vulnerable populations.
According to the circular, due to the rising demand for financial assistance following the 2024 floods in 27 districts, the central bank has increased its refinance scheme to Tk750 crore to support marginalised groups and women in affected areas.
At least 25% of the total loans will be disbursed to women borrowers or entrepreneurs. Additionally, individuals of the third gender will be eligible for these loan facilities, reads the circular.
Husne Ara Shikha, spokesperson of the Bangladesh Bank, said, "Banks will receive a 0.5% interest rate from the central bank under the refinance scheme. Due to the high operational costs associated with small loans, the interest rate for customers is set at 7%."
She also mentioned that individuals can borrow a maximum of Tk5 lakh under this scheme, while groups of five people can obtain a maximum loan of Tk20 lakh.
The spokesperson added that banks have reported a satisfactory loan recovery rate from this scheme, which has contributed to their increased interest in participating.
