Bangladesh Bank (BB) has issued a master circular for financing in the cottage, micro, small and medium enterprise (CMSME) sector.
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 percent loan and advance balance by 2024 and they have to increase minimum one percent loan and advance balance every year, reports BSS.
At least 50 percent has to be kept for cottage, micro and small enterprises and minimum 15 percent lending has to go to women entrepreneurs.
The circular also said banks and FIs have to keep minimum 40 percent CMSME lending to manufacturing sector, 25 percent for service sector and a maximum 35 percent for trading.
The highest ceiling of credit for cottage entrepreneurs is Taka 15 lakh while Taka one crore for manufacturing micro industries, Taka 25 lakh for micro service industries and Taka 50 lakh for micro entrepreneurs.
Small manufacturing industries will get maximum Taka 20 crore while Taka 5 crore for small service industries and small entrepreneurs. Medium manufacturing industries will get Taka 75 crore while Taka 50 crore for medium service industries, the circular said.