Woman entrepreneurs utilising SME loans more in trading
Monday, 29 November 2010
FE Report
A recent evaluation has shown that woman entrepreneurs are utilising SME (Small and Medium Enterprise) loans more in trading, compared to manufacturing and service sectors.
Statistics has revealed that 49 per cent of the total 1492 enterprises are businesses and Tk 5.5 billion had been invested in this sector, which is 50 per cent of total refinanced credit.
"Women's participation in mainstream business activities is very low and the central bank is giving special emphasis on women participation", a press release from SME & Special Programmes Department of Bangladesh Bank said.
SME & Special Programmes Department of Bangladesh Bank (BB) is planning to undertake motivational and training programmes for woman entrepreneurs to make them involved in other sectors, especially in manufacturing sector.
BB has also advised banks and other non-banking financial institutions to arrange such motivational programmes.
Seventeen banks and another 17 financial institutions disbursed a total of Tk 11.2 billion to woman entrepreneurs against 1429 enterprises under the central bank's refinance scheme.
BB advised the banks and financial institutions to set up 'Woman Entrepreneur's Dedicated Desk' with a woman officer in charge to speed up the loan sanction process.
At present, woman entrepreneurs can avail credit ranging from Tk. 50,000 to Tk 5.0 million as current capital. Besides, the maximum credit limit for them against personal guarantee has been set at Tk 2.5 million.
The central bank also asked credit providers to speed up the loan sanctioning process for woman entrepreneurs with less paper work.
Currently interest rate for woman borrowers under refinance scheme is bank rate plus 5.0 per cent or a maximum of 10 per cent. The central bank does not provide refinance facility if 10 per cent of the total disbursed loans in a quarter are not sanctioned to woman entrepreneurs.
A recent evaluation has shown that woman entrepreneurs are utilising SME (Small and Medium Enterprise) loans more in trading, compared to manufacturing and service sectors.
Statistics has revealed that 49 per cent of the total 1492 enterprises are businesses and Tk 5.5 billion had been invested in this sector, which is 50 per cent of total refinanced credit.
"Women's participation in mainstream business activities is very low and the central bank is giving special emphasis on women participation", a press release from SME & Special Programmes Department of Bangladesh Bank said.
SME & Special Programmes Department of Bangladesh Bank (BB) is planning to undertake motivational and training programmes for woman entrepreneurs to make them involved in other sectors, especially in manufacturing sector.
BB has also advised banks and other non-banking financial institutions to arrange such motivational programmes.
Seventeen banks and another 17 financial institutions disbursed a total of Tk 11.2 billion to woman entrepreneurs against 1429 enterprises under the central bank's refinance scheme.
BB advised the banks and financial institutions to set up 'Woman Entrepreneur's Dedicated Desk' with a woman officer in charge to speed up the loan sanction process.
At present, woman entrepreneurs can avail credit ranging from Tk. 50,000 to Tk 5.0 million as current capital. Besides, the maximum credit limit for them against personal guarantee has been set at Tk 2.5 million.
The central bank also asked credit providers to speed up the loan sanctioning process for woman entrepreneurs with less paper work.
Currently interest rate for woman borrowers under refinance scheme is bank rate plus 5.0 per cent or a maximum of 10 per cent. The central bank does not provide refinance facility if 10 per cent of the total disbursed loans in a quarter are not sanctioned to woman entrepreneurs.