Bangladesh Bank sets 27% loan target for CMSMEs to boost employment
As part of the new policy, people involved in f-commerce and e-commerce will be eligible for loans of up to Tk5 lakh under the CMSME scheme
Highlights
- Bangladesh Bank has introduced a policy to boost business growth in the CMSME sector
- 27% of loans will be allocated to the CMSME sector for the next five years
- F-commerce and e-commerce businesses can now access loans of up to Tk5 lakh
- Small traders without trade licenses are now eligible for loans under the CMSME scheme
- The definition of women entrepreneurs has been updated, with new ownership and employee criteria
Bangladesh Bank has introduced a significant policy change to enhance business growth and employment in the Cottage, Micro, Small, and Medium Enterprises (CMSME) sector.
Under the new policy, the central bank has mandated that 27% of loans be allocated to the CMSME sector for the next five years.
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This initiative was announced during a press conference held at Bangladesh Bank's headquarters in Motijheel today (17 March).
Mustafizur Rahman, executive director of Bangladesh Bank; Noushad Mustafa, director of the SME Department; and Habibur Rahman, assistant spokesperson, were present at the press conference.
As part of the new policy, people involved in f-commerce and e-commerce will be eligible for loans of up to Tk5 lakh under the CMSME scheme.
The revised master circular also outlines that small traders without trade licenses will be eligible for loans.
Besides, the definition of women entrepreneurs has been updated in the new policy.
A company will now be considered a woman-led business if the woman holds at least 20% ownership and 51% of its employees are women. Earlier, the threshold for ownership was 51%.
Besides, banks are required to establish separate departments to manage CMSME loans and assess the risks associated with them.
