The Bangladesh Bank on Wednesday decided to continue Tk 25,000 crore in pre-finance scheme for the cottage, micro, small and medium entrepreneurs.
BB issued a circular in this regard on the day.
According to the circular, considering the high demand from entrepreneurs and the greater interest of customers in the CMSME sector, a government priority, the Tk 25,000 crore scheme will continue until further notice.
The scheme provides loans and investments at relatively low profit and easy terms.
Earlier on July 19, 2022, BB formed a Tk 25,000 crore in refinance scheme for three years for the CMSMEs through a circular to make low-cost financing easy for the entrepreneurs and to boost economic growth of the country.
The central bank will disburse refinance fund among banks at the rate of 2 per cent.
According to the circular, as there would be no government subsidy for the newly introduced refinance scheme, the CMSMEs will be responsible to pay the entire interest liability at the rate of 7 per cent.
It said that at least 75 per cent of the total fund has to be disbursed among cottage, micro and small entrepreneurs while highest 25 per cent can be disbursed among the medium entrepreneurs.
The loan repayment tenure has been set to highest five years including six months grace period, it said.
Prior to the launch of the refinance scheme, the central bank has operated two schemes for the CMSMEs worth Tk 20,000 crore each since the Covid outbreak.
