The Bangladesh Bank (BB), which is the country’s central bank, has decided that women entrepreneurs will no longer receive incentives for classified Cottage, Micro, Small, and Medium Enterprises (CMSME) loans. However, they will remain eligible for incentive benefits if they renew continuous or revolving loans or investments within the specified term.
This is as per media reports, which added circular issued by the central bank in this direction recently, it outlined the criteria for calculating the incentive amount, which will be based on the total value of all regular loans or investments and the utilisation period even if renewed continuous or revolving loans and investments will still be eligible for receiving incentives.
Previously, the Bangladesh Bank had introduced the Small Enterprise Refinance Scheme for Women Entrepreneurs with a fund of Taka 3,000 crore and the primary objective of this scheme is to support women entrepreneurs by offering loans at a maximum interest/profit rate of 5 per cent.
To encourage timely loan repayment, both banks and financial institutions, along with their customers, have agreed to provide incentives at a rate of 1 per cent each.
The overall aim of this initiative is to ensure that by 2024, at least 15 per cent of the CMSME sector’s net credit and advance status is directed towards women entrepreneurs, promoting their active participation and growth in the business landscape.
