Priority will be given to farmers with smart cards, disaster-affected people, ethnic minorities, third-gender people, persons with disabilities and migrant workers who have returned home.
File image of Bangladesh Bank. Photo: Collage
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File image of Bangladesh Bank. Photo: Collage
Bangladesh Bank has restructured a Tk1,500 crore refinancing scheme for marginal and landless farmers, small traders, low-income professionals, women entrepreneurs and disadvantaged groups, offering loans at an interest or profit rate of up to 7%.
Under the scheme, individual borrowers can receive up to Tk10 lakh, while groups can borrow up to Tk40 lakh. The central bank’s Financial Inclusion Department recently issued the policy guidelines, setting the scheme’s tenure at five years.
The scheme, formed with Bangladesh Bank’s own funds, will provide refinancing to participating banks at 1% interest or profit. Banks can charge borrowers a maximum of 7%, calculated on a reducing balance basis.
Holders of Tk10, Tk50 and Tk100 no-frills bank accounts will be eligible to apply. Beneficiaries include landless and marginal farmers, fishermen, blacksmiths, potters, weavers, tailors, hawkers, rickshaw and van drivers, mechanics, small shopkeepers, street vendors, livestock rearers, fish farmers and freelancers, among other low-income groups.
Priority will be given to farmers with smart cards, disaster-affected people, ethnic minorities, third-gender people, persons with disabilities and migrant workers who have returned home.
Students holding student banking accounts can also receive loans for technical training and higher education against guarantees from their guardians.
Individual borrowers and small entrepreneurs can borrow up to Tk10 lakh. Groups of two to five members can receive up to Tk8 lakh per member, subject to a group ceiling of Tk40 lakh. At least 25% of the total fund must be allocated to women entrepreneurs.
Loans will have a maximum tenure of five years, or 60 months, with a grace period of up to six months. Borrowers can repay in monthly, quarterly, half-yearly or annual instalments.
No collateral can be required for loans of up to Tk5 lakh, although banks may seek personal guarantees from a maximum of two individuals. For loans exceeding Tk5 lakh, reasonable collateral may be accepted.
Borrowers classified as defaulters will not be eligible. However, banks cannot charge customers for collecting Credit Information Bureau reports for loans of up to Tk3 lakh.
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