• Tuesday, Aug 16, 2022
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BB offers special loan facility for CMSMEs

  • Published at 08:46 pm July 5th, 2021
SME weaving loom
Due to the coronavirus pandemic, the revenue of SMEs has decreased by 66% and 76% of the products have remained unsold Syed Zakir Hossain/Dhaka Tribune

The fund will be provided in favour of CMSMEs with an applicable one-year interest on the loans

Entrepreneurs of the cottage, micro, small, and medium enterprises (CMSMEs) can now get term loans or investment facilities alongside working capital loans under the government-announced stimulus package of Tk20,000 crore for the SME sector.  

According to a notice issued by Bangladesh Bank on Sunday, the fund will be provided in favour of CMSMEs with an applicable one-year interest on the loans. 

However, entrepreneurs in the medium sector will be entitled to working capital loan or investment facility from the incentive package as per previous rules and will also be eligible for getting the benefit of the interest subsidy, to be valid for one year.

Some Tk14,913 crore has been distributed from this package as of June this year, with a total of 94,989 people availing loans from the package, including 5,276 women entrepreneurs.

Despite several extensions, the implementation of the package is only 75% with it being launched in April last year. 

Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue (CPD), commending the move, said although the subsidized term loan and investment facilities alongside working capital will help the CMSME sector, there needs to be a second round of stimulus for them.

“So far, the stimulus has focused on trading-based support, but production-based support is also much needed which can be availed through the new facility,” he added.