Stimulus: Tk 500cr rolled out for those who migrated to villages during pandemic

The Bangladesh Bank yesterday rolled out a stimulus package of Tk 500 crore to support people who migrated back to their villages due to the ongoing economic hardship.

A good number of urban people who lost their jobs at the height of the coronavirus pandemic are now leading a difficult life without any employment in villages, according to a BB notice.

This will put an adverse impact on the rural economy, which is why the BB has decided to bring the people under the stimulus package titled Refinance Scheme for "Ghore Fera" (homecoming).

The returnees will be able to get funds at six per cent interest rate from the scheme.

Banks will get funds at 0.5 per cent interest rate from the central bank, meaning that they will enjoy an interest margin of 5.5 per cent for disbursement of the loans.

Borrowers who will avail up to Tk 2 lakh will be allowed to repay the loan by two years, which includes a grace period of three months.

The repayment tenure will be three years, including a six-month grace period, if the amount of loan ranges between Tk 2 lakh and Tk 5 lakh.

Clients will not need to provide any collateral.

The tenure of the refinance scheme will end on December 31, 2024. The loan recovery, however, will continue afterwards, according to the BB document.

The BB has selected eight sectors to provide the fund. The areas include local businesses with small capital; light engineering; fisheries and livestock; cultivation of vegetables and fruits; purchase of agriculture equipment; and building and repairing houses.