In a policy update, the Bangladesh Bank (BB) has announced a new target requiring banks and financial institutions to allocate 27 per cent of their total loan portfolios to the cottage, micro, small, and medium enterprise (CMSME) sector by 2029.
According to a master circular issued on Monday, banks must achieve an interim target of 25 per cent by the end of 2025, with an annual increment of at least 0.5 per cent leading up to the final goal.
The revised circular specifies that individuals engaged in f-commerce and e-commerce will be eligible to secure loans of up to Taka 5 lakh under the CMSME scheme. Additionally, small traders lacking trade licenses will now qualify for loans, broadening access to financial resources for more entrepreneurs.
Furthermore, the definition of women entrepreneurs has been updated. A business will be classified as woman-led if a woman owns at least 20 per cent of the company and 51 per cent of its workforce consists of women. This represents a shift from the previous requirement, which mandated a 51 per cent ownership stake.
These changes aim to empower the CMSME sector, promote entrepreneurship, and enhance the overall economic landscape in Bangladesh.
