Bangladesh Bank updates loan limits for enterprises

FE Team | Published: September 05, 2019 23:34:32

Bangladesh Bank (BB) has issued a master circular for financing in the cottage, micro, small and medium enterprise (CMSME) sector, reports BSS.
The central bank, in a circular on Thursday, updated the definition of CMSME in line with the National Industrial Policy and set a limit to the amount of credit the enterprises can avail.
Moreover, the circular said, banks and financial intuitions (FIs) have to keep at least 25 per cent loan and advance balance by 2024 and they have to increase minimum one percent loan and advance balance every year.
At least 50 per cent has to be kept for cottage, micro and small enterprises and minimum 15 per cent lending has to go to women entrepreneurs.
The circular also said banks and FIs have to keep minimum 40 per cent CMSME lending to manufacturing sector, 25 per cent for service sector and a maximum 35 per cent for trading.
The highest ceiling of credit for cottage entrepreneurs is Tk 1.5 million while Tk 10 million for manufacturing micro industries, Tk 2.5 million for micro service industries and Tk 5.0 million for micro entrepreneurs.
Small manufacturing industries will get maximum Tk 200 million while Taka 50 million for small service industries and small entrepreneurs. Medium manufacturing industries will get Tk 750 million while Tk 500 million crore for medium service industries, the circular said.