More women entrepreneurs to be benefitted

The central bank has instructed banks and financial institutions to extend the 1 per cent interest rate incentive to women entrepreneurs if their cash credits and overdrafts are renewed within the tenure.

Cash credit is a short-term loan that aims at helping businesses, financial institutions and companies meet their working capital requirements.

The incentive under the Small Enterprise Refinance Scheme for Women Entrepreneurs will also be applicable for an overdraft, a credit facility that allows customers to pay for bills and other expenses when their account reaches zero.

However, no incentives can be extended against classified loans, the Bangladesh Bank said in a circular yesterday. 

It said the sum of all regular loans and investments and their tenure will have to be taken into account while determining the incentive amount. 

The BB rolled out the scheme in 2019, when both male and female entrepreneurs were allowed to avail the loans. But the scheme was later dedicated only to female entrepreneurs.

In June, the central bank doubled the volume of the scheme to Tk 3,000 crore.

Female entrepreneurs in cottage, micro, small and medium enterprises are eligible to take loans from the scheme.

Banks can charge a maximum 5 per cent interest against the loan.

In order to encourage entrepreneurs to repay, settle and renew loans on time, the central bank has introduced the incentive for borrowers as well as banks and financial institutions.