Women entrepreneurs not getting SME credit
Monday, 2 March 2009
IT is difficult to accept why the banks and financial institutions do not provide loans carrying low rates of interest to women entrepreneurs who run small and medium enterprises (SMEs). Neither the banks nor the financial institutions are following the policy of the central bank in this regard.
A Tk 500 crore SME fund was created by the Bangladesh Bank. The central bank has been requesting the banks and financial institutions to provide the SME loans to women entrepreneurs at low rates of interest. Women complain that they are not getting the credit from the banks. Recently, the BB governor repeated his request to the commercial banks to extend loans to women-run SME projects at 10 per cent rate of interest.
It is difficult to understand why the banks are unwilling to give loans to women entrepreneurs. Does not it show a bias in banks and financial institutions against women? Women have proved that they are good at loan repayment. They have also demonstrated their capacity to efficiently run small and medium enterprises. The central bank governor deserves credit for requesting the banks to change their male-only outlook. But the central bank should keep up the pressure so that the banks and financial institutions follow its policy.
Shahida Chowdhury
Rajabazar, Dhaka
A Tk 500 crore SME fund was created by the Bangladesh Bank. The central bank has been requesting the banks and financial institutions to provide the SME loans to women entrepreneurs at low rates of interest. Women complain that they are not getting the credit from the banks. Recently, the BB governor repeated his request to the commercial banks to extend loans to women-run SME projects at 10 per cent rate of interest.
It is difficult to understand why the banks are unwilling to give loans to women entrepreneurs. Does not it show a bias in banks and financial institutions against women? Women have proved that they are good at loan repayment. They have also demonstrated their capacity to efficiently run small and medium enterprises. The central bank governor deserves credit for requesting the banks to change their male-only outlook. But the central bank should keep up the pressure so that the banks and financial institutions follow its policy.
Shahida Chowdhury
Rajabazar, Dhaka