Micro, small entrepreneurs to get Tk 300cr loans

In order to accelerate the country's economic recovery in the wake of the Corona virus (COVID-19) and improve the living standards of marginalized people in rural areas, the government will provide Tk 300 crore loans as incentives to micro, small and medium enterprises (CMSMEs). 

SME Foundation will disburse the loan of which Tk 100 crore will be distributed in the current financial year and Tk 200 crore in the next financial year. To this end, the SME Foundation has already taken initiatives to disburse loans through agreements with 11 banks and non-bank financial institutions. 

The banks and financial institutions are Brac Bank, Premier Bank, Mutual Trust Bank, Bank Asia, Southeast Bank, Dhaka Bank, Dutch-Bangla Bank, Prime Bank, Basic Bank, IDLC Finance and Lanka Bangla Finance.

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 entrepreneurs from remote areas under the loan programme.

The Foundation, earlier in its 120th Board meeting approved the policy and guidelines for disbursement of this loan programme. Some of the salient features of the policy are that priority will be given to entrepreneurs in the category of micro, small and medium entrepreneurs affected by the Corona epidemic in rural and marginal areas. 

Backward and tribal areas, physically disabled and third gender entrepreneurs will get loans at 4 percent interest under the incentive package. At the customers' level, the loan amount will be from a minimum of Tk 1 lakh to a maximum of Tk 75 lakh. The loan can be repaid in maximum 24 equal monthly installments on the basis of banker-customer relationship. 

The concerned bank will take initiative to disburse the loan in favour of the customer by approving the loan within 15 working days of submission of ‘complete/complete loan application form’ along with the required documents of the bank. 

In general, loans will be disbursed in favor of single and joint ventures. However, group-based loans can be disbursed in favor of a maximum of 5 entrepreneurs on the basis of banker-customer relationship and consensus in order to bring marginal small, especially women-entrepreneurs under the loan.