Give IT freelancers loans, credit cards

Bangladesh Bank yesterday asked banks to provide loans and credit cards to freelancers focused on information technology to promote such self-employed professionals who are not necessarily committed to a particular employer long-term.

Freelancers bearing a virtual identity card issued by the information and communication technology (ICT) division will be eligible for the facilities in tandem, according to a central bank notice.

There are around 6.50 lakh IT freelancers collectively earning nearly $200 million per year, according to the Bangladesh Association of Software

and Information Services (BASIS), a national trade body for the software and IT-enabled service industry.

Foreign currency earnings by IT freelancers have been on the rise in recent years, making a significant contribution to the national economy, said the notice.

The government has taken several initiatives towards developing human resources, creating entrepreneurs, generating employment and boosting investment in the freelancing sector in order to turn Bangladesh into a developed nation by 2041.

As part of the move, the government has already started providing the virtual ID cards.

The sector will be able to make appropriate progress if the freelancers get loans and credit cards from banks, said the central bank.

BASIS President Syed Almas Kabir welcomed the move, saying it would help give a boost to the freelancing sector.

"We have long been requesting the government to allow freelancers to enjoy bank loans. And the central bank has finally taken the time-befitting decision," he said.

He, however, raised questions over the categorisation of such loans.

The loans given to IT freelancers should be considered small and medium enterprise (SME) loans, not personal loans, he said.

If required, the BASIS will provide all-out support to banks to this end, Kabir said.