Bangladesh Bank extends Tk 25,000 crore CMSME loan scheme for growth
Bangladesh Bank (BB) has extended its Tk 25,000 crore pre-finance scheme for cottage, micro, small, and medium entrepreneurs (CMSMEs). The scheme, initially launched in 2022, provides low-cost loans and investments with easy terms. It has seen high demand and customer interest, leading to its continuation.
The central bank will disburse funds among banks at a 2 per cent rate, with CMSMEs paying the entire 7 per cent interest liability without government subsidy. At least 75 per cent of the total fund must go to cottage, micro, and small entrepreneurs, with the remaining 25 per cent for medium entrepreneurs.
The scheme offers loans with a maximum repayment tenure of five years, including a six-month grace period. It replaces two previous schemes worth Tk 20,000 crore each, launched by BB since the Covid outbreak. The Bangladesh government recently decided to continue this scheme in 2023.
The Tk 25,000 crore refinance scheme for CMSMEs continues, providing low-cost financing and supporting the sector's growth. The scheme's extension reflects the government's commitment to fostering entrepreneurship and economic development.
