BB fund for women entrepreneurs remains under-utilised

Rokia Afzal Rahman, president of Bangladesh Federation of Women Entrepreneurs, speaks at a seminar on 'AB Bank's role in providing financial assistance to women entrepreneurs of small and medium enterprises (SMEs)' in Dhaka yesterday.Photo: STAR

Only a small portion of Bangladesh Bank's special funds set aside for women entrepreneurs could be administered because of a negligence on the part of most commercial banks, said Rokia Afzal Rahman, president Bangladesh Federation of Women Entrepreneurs (BFWE).
“The commercial banks are pre-occupied with other bigger deals and they may not have the time to sign an agreement with the Bangladesh Bank to manage the special funds meant for women entrepreneurs,” Rokia told a seminar in Dhaka yesterday.
AB Bank organised the seminar titled 'AB Bank's role in providing financial assistance to women entrepreneurs of small and medium enterprises (SMEs)'.
According to Bangladesh Bank data, about Tk 2 crore has been distributed under the scheme, in contrast to an allocated fund of Tk 90 crore.
Under the scheme, women entrepreneurs are eligible to receive a loan at a 10 percent interest. But only five commercial banks have signed an agreement with the Bangladesh Bank to manage the fund.
AB Bank Ltd Managing Director Kaiser A Chowdhury, Bangladesh Bank General Manager Abdul Haq, BFWE Vice President Khadija Afzal, Ananda Shipyard and Slipways Ltd Managing Director Afroza Bari, Personal Hair and Beauty Ltd Managing Director Kaniz Almas Khan, and Dhanshiri Communications Ltd Managing Director Shami Kaiser also took part in the discussion.
Rokia Rahman urged commercials banks to come forward in this regard, so that more women entrepreneurs can start or expand their business.
She also urged banks to sanction more loans for women entrepreneurs, who would use the money to set up training institutions at rural levels.
Kaniz Almas Khan said the process of getting a loan from a bank is very complex. “The documentation procedure is lengthy and complicated. Furthermore, banks are less interested to serve small women entrepreneurs,” she said.
She hoped that banks would adopt a friendlier approach to women entrepreneurship, to facilitate the establishment and growth of businesses operated by women.
Shami Kaiser said women entrepreneurs do not have access to adequate information regarding how, when and from where they can get funds to start their business or maintain smooth business cycles.
She urged banks to open cells, especially dedicated to meet the needs of women entrepreneurs.