Interest rate cut on loans from CMSME refinancing fund | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
May 23, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, MAY 23, 2025
Interest rate cut on loans from CMSME refinancing fund

Banking

TBS Report
23 November, 2020, 07:55 pm
Last modified: 24 November, 2020, 10:14 am

Related News

  • BB eases foreign currency payment for studying language courses abroad
  • Bangladesh to introduce new banknotes before Eid-ul-Adha
  • Shortage of crucial commodities: Farmers bear brunt of supply chain inefficiencies while middlemen profit: BB report
  • Students, professionals can pay overseas course fees in dollars via banks from now on
  • Adoption of a market exchange rate is a smart policy move

Interest rate cut on loans from CMSME refinancing fund

The interest rate on loans disbursed at the individual level will be a maximum of 6%

TBS Report
23 November, 2020, 07:55 pm
Last modified: 24 November, 2020, 10:14 am
File Photo: Salahuddin Ahmed/TBS
File Photo: Salahuddin Ahmed/TBS

The Bangladesh Bank has reduced the interest rate on loans disbursed from the refinancing fund set up to support cottage, micro, small and medium enterprises (CMSMEs) increase the flow of term loans and working capital.

Based on the new decision, the interest rate on loans disbursed at the individual level will be a maximum of 6%.

Previously, the interest rate was the same as the existing interest rate on the market; 10% was the maximum rate for women entrepreneurs.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Banks and financial institutions disbursing loans from the fund will pay 2% interest to the central bank. Previously, the rate was 4%.

In a circular on Monday, the central bank said the facility had been provided to help industrial entrepreneurs in this sector overcome losses caused by the Covid-19 pandemic and retain jobs.

It said the new rate came into effect on 18 November.

The Asian Development Bank (ADB) and the government set up a refinancing fund worth $24 crore in 2017 to support the CMSME sector.

It was decided that the CMSME sector located outside the Dhaka and Chattogram metropolitan areas would be given support through the fund.

In November 2017, the refinancing fund policy stated that loans up to a maximum of 90% of the project cost could be given to eligible projects or businesses.

Under the fund, loan facilities of up to a maximum of Tk1 crore can be given to CMSMEs, and up to a maximum of Tk3 crore to medium-sized industries.

The term of this loan will be two to five years and 30% of the disbursed loan must be used as working capital.

Two-thirds of the loans from the fund must be disbursed for cottage, micro and small industries while 15% of the loans should be allocated for women entrepreneurs.

As the fund is formed with assistance from the ADB, the key condition for obtaining a loan from the fund is that the project or business not harm the environment and that it include measures for ensuring social security.

Top News

Bangladesh Bank / Refinancing Fund / CMSMEs

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Illustration: TBS
    Prof Yunus considering resignation: Nahid tells BBC Bangla after meeting CA
  • Ahmed Shayan Fazlur Rahman. File Photo: Collected
    UK crime agency freezes London properties of Salman F Rahman’s son Shayan: Financial Times report
  • Protesting NBR officials hold a press briefing in Agargaon, Dhaka on 18 May 2025. Photo: TBS
    Amendment to ordinance: Protesting NBR officials welcome move, but say strike will continue

MOST VIEWED

  • How Renata's Tk1,000cr investment plan became a Tk1,400cr problem
    How Renata's Tk1,000cr investment plan became a Tk1,400cr problem
  • Govt officials to get up to 20% dearness allowance
    Govt officials to get up to 20% dearness allowance
  • File Photo: Mumit M/TBS
    Bangladesh to introduce new banknotes before Eid-ul-Adha
  • National Security Adviser Khalilur Rahman speaks at a press briefing at the Foreign Service Academy on 21 May 2025. Photo: PID
    No talks on Myanmar corridor, only discussed channelling aid with UN: Khalilur Rahman
  • Protestors block the intersection in front of InterContinental Dhaka on 22 May 2025. Photo: Syed Zakir Hossain/TBS
    Traffic at a standstill amid multiple protests on city streets
  • NBR officials hold press conference on 21 May 2025. Photo: TBS
    NBR officials announce non-cooperation from today, call for nationwide strike from Saturday

Related News

  • BB eases foreign currency payment for studying language courses abroad
  • Bangladesh to introduce new banknotes before Eid-ul-Adha
  • Shortage of crucial commodities: Farmers bear brunt of supply chain inefficiencies while middlemen profit: BB report
  • Students, professionals can pay overseas course fees in dollars via banks from now on
  • Adoption of a market exchange rate is a smart policy move

Features

Shantana posing with the students of Lalmonirhat Taekwondo Association (LTA), which she founded with the vision of empowering rural girls through martial arts. Photo: Courtesy

They told her not to dream. Shantana decided to become a fighter instead

1d | Panorama
Football presenter Gary Lineker walks outside his home, after resigning from the BBC after 25 years of presenting Match of the Day, in London, Britain. Photo: Reuters

Gary Lineker’s fallout once again exposes Western media’s selective moral compass on Palestine

2d | Features
Fired by US aid cuts, driven by courage: A female driver steering through uncertainty

Fired by US aid cuts, driven by courage: A female driver steering through uncertainty

2d | Features
Photo: TBS

How Shahbagh became the focal point of protests — and public suffering

3d | Panorama

More Videos from TBS

Professor Yunus 'thinking about resigning': Nahid Islam

Professor Yunus 'thinking about resigning': Nahid Islam

1h | TBS Today
Chinese youth now more interested in economic reconstruction than Taiwan issue

Chinese youth now more interested in economic reconstruction than Taiwan issue

2h | Others
How did Musk become Trump's political weapon?

How did Musk become Trump's political weapon?

3h | Others
BNP wants elections and resignation of questionable advisors within this year

BNP wants elections and resignation of questionable advisors within this year

5h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net