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Small borrowers will be eligible for credit-guarantee facilities under two new refinancing schemes of the central bank.
The refinancing schemes, totalling Tk 44 billion, are for agricultural-product processing and small enterprises run by women, the Bangladesh Bank (BB) said on Wednesday.
In October this year, BB's SME department introduced a Tk 14-billion refinancing scheme, and in June this year, a Tk 30-billion refinancing scheme for small enterprises run by women entrepreneurs.
The credit-guarantee schemes will increase loans and funds for women entrepreneurs and agricultural-product processing in small-scale industrial units.
A central banker told the FE that these credit facilities will help ensure women's participation in economic activity and help diversify agricultural products. They also said that such a facility would enhance export earnings.
A BB circular issued on the day said that banks and financial institutions need new participating agreements when disbursing loans under the two new refinancing facilities. It said only one scheme will be enjoyed by the borrowers.
There are now four credit-guarantee funding options available. They aye Tk 250 billion for pre-financing, Tk 300 billion for the women entrepreneurs' refinancing scheme, Tk 50 billion for the agricultural-product processing refinancing scheme and Tk 5.0 billion for the financial-inclusion scheme.
Borrowers under the category of CMSMEs (cottage, micro, small and medium enterprises) can avail of collateral-free loans ranging from Tk 500,000 to Tk 50 million.
Another senior central banker said that this facility will encourage many small enterprises as they will be able to get loans without collateral from these four categories.
"There are many women enterprises who need funds but lack the collateral to access loans. Now they will be able to get it," said a BB official.
The official said that the guarantee fee for the first year is just 1.0 per cent and will decrease in the second and subsequent years for loans taken under the schemes.
jasimharoon@yahoo.com