BB builds Tk 665cr SME fund | The Daily Star
12:00 AM, August 04, 2010 / LAST MODIFIED: 12:00 AM, August 04, 2010

BB builds Tk 665cr SME fund

Bangladesh Bank has created a Tk 665 crore ($95 million) fund for providing loans to small and medium enterprises (SMEs) at low interest.
Asian Development Bank (ADB) will contribute $76 million, while the government will provide the rest $19 million to the fund, according to a central bank circular issued on Monday.
From the fund, 15 percent will be reserved for women entrepreneurs and the highest interest rate for them would be 10 percent. The BB has directed the banks to give loan to the male borrowers on the basis of market rate of interest.
The circular said the borrowers will get Tk 50,000 to Tk 70,000 in loans.
The banks will get around 75 percent refinance facility from the central bank. The bank concerned will give 15 percent of the total loan and the entrepreneur will bear the rest 10 percent.
The BB circular also said the highest tenure of a mid-term loan will be three years and that for a long-term loan will be five years. The refinancing scheme will be applicable for the projects outside Dhaka and Chittagong metropolitan areas.
For getting the refinance facility for giving loans under the SME category, the banks will have to fulfill some criteria. One of those is that the bank will have practical prior experience about SME financing. In the long-term national rating scale, they must have BBB- rating.

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