Sunday, 24 October, 2021

SMEF asks banks, FIs to ease loan rules for small, women entrepreneurs

  • Staff Correspondent
  • 24 September, 2021 12:00 AM
  • Print news
SMEF asks banks, FIs to ease loan rules for small, women entrepreneurs

SME Foundation has requested banks and financial institutions to simplify rules for small and women entrepreneurs in distributing stimulus loans.

SMEF Managing Director Md Mofizur Rahaman made the call at a women entrepreneurs-Banker matchmaking event held in Chattogram on Thursday.

 He said the foundation wants to disburse more loans among women entrepreneurs from the Tk 2 billion stimulus loans it is going to disburse in the current fiscal year.

In the last fiscal year, SMEF disbursed Tk 1 billion loans from the government announced stimulus package. Of which 66.75 percent went to male entrepreneurs and 33.25 percent to women entrepreneurs, he informed.

As part of its latest move to channel more loans to women entrepreneurs, the SMEF is preparing necessary papers and taking initiatives to aware women entrepreneurs about the rules and arranging matchmaking, among others, said a release. 

The SMEF boss is hopeful of getting more money from the government in the current fiscal years as they have a target to complete distribution of the stipulated Tk 2 billion loans by December this year.

Mofizur informed that 83.24 percent of SME entrepreneurs, who got loans from the foundation last fiscal, were from outside Dhaka.

In continuation of that process, SME Foundation has signed deals with 19 banks and financial institutions to disburse more loans among entrepreneurs from rural and marginal areas.

The government had allocated Tk 1 billion for SME Foundation in 2020-21 fiscal year from its second stimulus package for CMSMES to improve lives of rural marginal people and facilitate faster economic recovery from Covid-19.

The finance division has allocated another Tk 2 billion in favour of SMEF for distributing stimulus loans among CMSMEs.

Entrepreneurs yet to get stimulus loans, entrepreneurs of priority SME sub-sectors, clusters and lagging and tribal areas, women and new entrepreneurs, physically challenged and third gender entrepreneurs will get priority in new loans.

The loan amount will range from Tk 1 to 50 lakh and it will bear 4 percent interest. SMEF says it will try to give collateral-free loan up to Tk 25 lakh. The loans are repayable in 24 equal installments in line with banker-customer relations.