BB extends loan facility for corona-affected marginal traders

Staff Correspondent

10 November, 2020 12:00 AM printer

BB extends loan facility for corona-affected marginal traders

Bangladesh Bank has extended loan facility from its refinance scheme for the COVID-19 affected low income professionals, farmers and holders of small and marginal businesses.

Financial Inclusion Department (FID) of BB issued a circular to the top executives of all scheduled banks, instructing them to give loans  from the central bank’s refinance scheme with immediate effect.

Under the facility, the borrowers can take loans from three banks at a time as per the guideline.

Even though simultaneous loan taking from three separate banks at a time has been allowed, the borrowing businesses have to collect separate loan certificates from first and second lending banks and submit it to latest lending bank to clarify the borrowers’ loan limit.

On April this year, BB set up a refinance fund of Tk 30billion for COVID-19 affected low-income group of people, including professionals, farmers, and  small and marginal traders.

Economic activities were hampered across the country, rural areas in particular, because of the outbreak of the Novel Corona virus.

As a result, the low-income professionals, farmers and marginal and small businessmen of the country are unable to carry out their income generating activities.

BB acknowledged that the contribution of such sector is huge in the country’s rural economy.

With the refinance scheme, economic activities of the professional, farmers and marginalized traders will be benefited to keep their activities running.

Banks and Microcredit Regulatory Authority (MRA) certified micro finance institutions (MFI) will disburse loans under the programme.