Refinance scheme made bigger for female-run SMEs

The Bangladesh Bank today increased the volume of refinance scheme for women entrepreneurs with a view to facilitating female-run businesses.

The volume of the scheme now stands at Tk 3,000 crore compared to Tk 1,500 crore previously, according to a central bank notice.

The BB also changed the name of the scheme titled "Small Enterprise Refinance Scheme for Women Entrepreneurs", whereas the previous name was "Small Enterprise Refinance Scheme".

Female entrepreneurs in the cottage, micro, small and medium enterprises will be able to take loans from the scheme.

A central bank official said the banking regulator rolled out the scheme in 2019 when both male and female entrepreneurs were allowed to take loans from the scheme.

But the scheme was later dedicated only to female entrepreneurs such that they can get access to finance.

The BB official said women entrepreneurs are now allowed to get loans at 5 per cent interest from the scheme.

If any female entrepreneur repays the loan in time, she will be considered to take loan from the scheme again at 4 per cent interest, he said.