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The Financial Express

Bangladesh Bank launches Tk 5b credit scheme for low-income people

| Updated: September 20, 2021 11:20:43


The Bangladesh Bank seal is pictured on the wall outside the central bank headquarters in Motijheel, the bustling commercial hub in capital Dhaka The Bangladesh Bank seal is pictured on the wall outside the central bank headquarters in Motijheel, the bustling commercial hub in capital Dhaka

The Bangladesh Bank (BB) launched a Tk 5.0-billion re-financing scheme on Sunday to help mitigate adverse impact of the Covid-19 pandemic on the marginal/landless farmers, low-income groups, school banking account-holders and small businesses.

The central bank, in a press release, said Tk 10, Tk 50 and Tk 100 account-holders are entitled to get money from the special fund.

The main purpose of the special fund is to revitalise economic activities of these people, affected from the second wave of the virus outbreak, through continuation of their formal credit access.

The central bank also asked the chief executive officers and managing directors of all scheduled banks for taking necessary measures to provide loans to such people.

Under the scheme, the scheduled banks are allowed to disburse collateral-free loan of maximum Tk 0.5 million to a client. In terms of group funding, the regulator set a loan limit of maximum Tk 2.0 million for a group having two to five members.

The rate of interest under the scheme will be 1.0 per cent for the banks, while the beneficiaries will get loans at the rate of maximum 7.0 per cent from the banks.

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