Third gender entrepreneurs too will get stimulus loans

Physically challenged and third gender entrepreneurs – along with general small and medium businesses – will also receive loans from the second stimulus package announced by the government to avert the impacts of coronavirus.

The interest rate on this loan will be 4%. At the consumer level, the loan amount will be from a minimum of Tk1 lakh to a maximum of Tk75 lakh. The loan has to be repaid in a maximum of 24 equal monthly instalments on the basis of banker-customer relationship.

The Small and Medium Enterprise (SME) Foundation will disburse Tk300 crore of loans from the second phase stimulus package. To this end, the institution has entered into agreements with 11 banks and non-bank financial institutions, the SME Foundation said in a press release on Tuesday.

Last January, the government announced a stimulus package of Tk2,700 crore to improve the living standards of the cottage, micro, small and medium enterprise (CMSME) sector, and rural areas. Of this, Tk1,500 crore has been allocated for the CMSME sector.

Out of the Tk1,500 crore, the SME Foundation will distribute Tk300 crore – Tk100 crore this year and the remaining Tk200 crore by June next year. Of the total loan, 25-30% will be distributed among women entrepreneurs.

Those who received loans under the first phase incentive will not get loans from this package. Entrepreneurs from priority SME sub-sectors and clusters, women entrepreneurs, new entrepreneurs who have not received bank loans, entrepreneurs from backward areas and physically challenged and third gender entrepreneurs will get loans.

In general, loans will be disbursed in favour of single and joint ventures. But, group-based loans can be disbursed in favour of a maximum of five entrepreneurs on the basis of banker-customer relationship and consensus in order to bring marginal small, especially women-entrepreneurs under the loan facility.

The SME Foundation has also started the process of signing agreements with Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank and several other public and private banks and financial institutions to bring the entrepreneurs of remote areas under the loans.

Loans will be available at 11 financial institutions: Brac Bank, Premier Bank, Mutual Trust Bank, Bank Asia, Southeast Bank, Dhaka Bank, Dutch-Bangla Bank, Prime Bank, Basic Bank, IDLC, and LankaBangla Finance.

The SME Foundation will, in consultation with partner banks and financial institutions, appoint focal officers in one or more branches that are convenient for entrepreneurs.

Entrepreneurs will contact the focal officers who coordinate with the SME Foundation, banks' head offices and branches and entrepreneurs.