Banks asked to give 25% of Tk 3,000cr stimulus fund among women

Bangladesh Bank today asked banks to disburse among women at least 25 per cent of the Tk 3,000 crore stimulus fund, which is dedicated to farmers, underprivileged women, professionals and micro enterprises.  

The fund was rolled out in April last year as part of the government's effort to keep the micro businesses afloat during the economic crisis brought on by the coronavirus pandemic.

Although a major portion of the stimulus fund has already been disbursed to the businesses owned by female entrepreneurs, the central bank has included the provision in order to give more emphasis to female entrepreneurs, a BB official said.

Banks have to implement instruction immediately, according to a BB notice.

Microfinance institutions (MFIs) with certificates from the Microcredit Regulatory Authority now give out the loans.

Under the package, the BB initially provides the fund to banks at 1 per cent interest, which they lend to MFIs at 3.5 per cent interest.

The MFIs are allowed to charge a maximum of 9 per cent interest to the borrowers.

MFIs usually charge about 25 per cent interest on their clients as their operational cost is too much high.

Banks have so far disbursed 63 per cent of the stimulus package through different MFIs.

Small businesses like roadside tea stalls can get loans, the highest amount of which would be Tk 75,000.

If the small businesses are owned by more than five persons, the loan ceiling would go up to Tk 3 lakh.

The loans must be paid back within a year.

But MFIs will be allowed to disburse loans ranging from Tk 10 lakh to Tk 30 lakh to micro enterprises and their repayment duration would be two years.