Women entrepreneurs won't get incentives for classified CMSME loans
According to the circular, the amount of all regular loans or investments and the period of utilisation shall be considered when calculating the incentive amount
The Bangladesh Bank on Wednesday announced that Cottage, Micro, Small and Medium Enterprises (CMSME) loans taken by women entrepreneurs from banks or financial institutions, if classified, would no longer be eligible for incentive benefits.
In a circular issued on Wednesday, the central bank outlined the criteria for determining the amount of incentive, stating that it will be calculated based on the total amount of all regular loans or investments and the period of utilisation.
Additionally, if continuous or revolving loans or investments are renewed within the designated term, they will still be eligible for incentive benefits.
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The Bangladesh Bank has previously launched the "Small Enterprise Refinance Scheme for Women Entrepreneurs" with a fund of Tk3,000 crore. This scheme aims to support women entrepreneurs by providing loans at a maximum interest/profit rate of 5%.
To further incentivise prompt loan repayment, both banks and financial institutions, along with their customers, have agreed to provide incentives at the rate of 1% each.
The primary goal of this initiative is to ensure that at least 15% of the net credit and advance status of the CMSME sector is disbursed to women entrepreneurs by the year 2024.
By offering affordable loans and incentives, the Bangladesh Bank hopes to foster the growth and success of women-owned businesses in the country.
