This pragmatic and realistic issue, proposed by the SME Foundation, was published in the media on 7th August. If implemented, this will be of great help for many small retailers and shop owners operating across Bangladesh in all urban and rural centres. These small traders usually take loans from local 'loan sharks' at high interest rates. The loans are usually used for buying fresh fruits and vegetables with, maybe, no fixed establishment except a little space in local 'hats or bazars' or at road corners. Also many small traders have modest fixed establishments, stocking usually stationery and other consumer goods of daily use.
If such traders are provided with small loans, it could help in reducing prices to some extent at retail levels. Depending on their average transaction volumes, these loans should be limited in amounts, say up to Tk 5,000 for fresh vegetables and fruit sellers, and a maximum of Tk 50,000 for established small shops and grocery stores that are established on a more permanent basis. The repayment period may vary from one to five years depending on their average volume of stocks and transactions as well as the background and reputation of the trader. These could be guaranteed or supported by recognised village elders known to the local bank.
The idea is quite reasonable, and the government and the SME Foundation may implement it. This can contribute to economic development.
Engr S A Mansoor
Dhaka
Small loans for small traders
FE Team | Published: August 08, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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