Saturday, 18 September, 2021

Stimulus loans to focus on new borrowers

  • Staff Correspondent
  • 29 July, 2021 12:00 AM
  • Print news

Bangladesh Bank has directed banks to disburse loan from stimulus packages giving priority to the entrepreneurs who did not get such loans last year.

Bangladesh Bank has allocated Tk 330 billion for the industries and service sector in the fiscal year 2021-22.

The interest rate on the loan will be 9 percent. The customer will pay 4.5 percent and the government will subsidize the remaining 4.5 percent interest.

The banking regulations and policy department of BB on Wednesday issued a circular in this regard and sent it to the top executives of all banks.

According to the notification, only those industries and service sectors (excluding CMSMEs) that have been affected by the COVID-19 pandemic will get benefits under this package.

 Besides, priority will be given to the most affected industries. The government wants to ensure that a large number of affected institutions are getting the funds instead of focusing on only a small number of industries and institutions. Bangladesh Bank has therefore now instructed the banks to prioritise those organizations which have not received the benefits so far both in the industrial and service sectors.

In the second phase of stimulus packages, the BB will disburse about Tk 530 billion through different banks.

The central bank already provides a written format to the banks for disbursement of the loan along with specified how much money a bank can lend.

The disbursement of low-interest incentive loans began in April last year to help the economy recover from the shocks of the pandemic.

The first phase of the loan disbursement has already ended. Under this, the banks have lent about Tk 500 billion as working capital to small and large entrepreneurs at subsidised interest rates.