Image credit: Newagebd.net
The Bangladesh Bank on Sunday issued a circular that made cottage, micro and small entrepreneurs eligible for receiving term loan from the Tk 20,000-crore stimulus package.
The BB circular also said that such borrowers would also remain eligible for receiving working capital loans.
In both cases, the cottage, micro and small entrepreneurs would receive one-year’s interest on loans as compensation.
The medium entrepreneurs would not be eligible for receiving such term loans from the package. However, their scope for receiving working capital loans would remain valid, the BB circular said. Besides, the medium entrepreneurs would also receive one-year’s interest as compensation.
The central bank announced the stimulus package in April 2020 with the aim to support the cottage, micro, small and medium entrepreneurs.
Initially, the banks were asked to implement the package by June of the year but disbursements from the package were delayed on various grounds, prompting the central bank to extend implementation deadlines on several occasions.
As of June 17 of this year, implementation of the package reached Tk 14,913.25 crore, which represents 74.57 per cent of Tk 20,000 crore.
Of the banks, Islami Bank Bangladesh disbursed the highest Tk 1,699.54 crore against its total Tk 2,000-crore disbursement target.
BRAC Bank disbursed Tk 1,447.76 crore among the CMSMEs from the stimulus package against its Tk 1,500-crore disbursement target.
United Commercial Bank’s disbursement reached Tk 1,223.47 crore against its Tk 1,250-crore disbursement target, Agrani Bank disbursed Tk 889.83 crore against its Tk 950crore target, Uttara Bank disbursed Tk 606.74 crore against its Tk 625-crore target and Shahjalal Islami Bank disbursed Tk 597.54 crore against its Tk 600-crore target.
From the stimulus package, 94,669 CMSMEs have so far received stimulus funds.
The interest rate on the loans was set at 9 per cent. Of the interest, the government will bear 5 percentage points as subsidy and the remaining 4 percentage points will be borne by the borrowers.
Source: https://www.newagebd.net/article/142849/entrepreneurs-of-cottage-micro-small-business-to-get-term-loan