Small entrepreneurs without TIN can now avail up to Tk5 lakh collateral-free loans

Small entrepreneurs without a Taxpayer Identification Number (TIN) will now be eligible for loans of up to Tk5 lakh without the need for collateral. However, they must provide other business-related documents to secure the loan.
To strengthen the Cottage, Micro, Small, and Medium Enterprises (CMSME) sector, Bangladesh Bank announced this policy at a press conference held at its headquarters on Monday.
Key officials present at the event included Mustafizur Rahman, Executive Director of Bangladesh Bank; Noushad Mustafa, Director of the SME Department; and Habibur Rahman, Assistant Spokesperson.

A new five-year CMSME policy has introduced a category called “informal entrepreneurs.” Entrepreneurs in this category—operating in production, services, and trade sectors with a workforce of no more than 10 people (including family members)—will now have access to these loans. There is no turnover requirement for these businesses, but their fixed assets, excluding land and factory buildings, must be valued at less than Tk5 lakh.
Loan limits for different business categories
The new CMSME policy also defines loan limits for other business categories.
Medium-sized enterprises can receive loans of up to Tk100 crore, micro manufacturing industries up to Tk2 crore, small manufacturing industries up to Tk25 crore, cottage industries are eligible for a maximum loan of Tk20 lakh, the trading sector of medium-sized industries can receive a maximum loan of Tk10 crore, the trading and service sectors of small-scale industries can receive up to Tk8 crore, and the trading sector of micro-industries can receive a maximum loan of Tk75 lakh.
This new policy replaces the previous CMSME framework, which was introduced in 2019 and has now expired. The updated policy will be in effect for the next five years.
Under this policy, the central bank has mandated that 27% of total bank loans be allocated to the CMSME sector for the next five years (2029).
Expanded loan access for e-commerce and small traders
As part of this policy, individuals involved in f-commerce and e-commerce will now have access to loans of up to Tk5 lakh under the CMSME scheme. This is expected to benefit small online businesses and digital entrepreneurs, who previously faced difficulties in securing financing.
Additionally, a major reform has been introduced for small traders without trade licences, making them eligible for loans under the CMSME scheme. This change is expected to support informal businesses that have struggled with financial inclusion due to a lack of official documentation.
Updated definition of women entrepreneurs
A significant update in the new policy is the revised definition of women entrepreneurs. Previously, a business was considered woman-led if a woman held at least 51% ownership. The updated definition lowers the ownership requirement to 20%, provided that at least 51% of the company’s employees are women. This change aims to encourage greater participation of women in business and enhance their access to financial support.
Strengthening CMSME loan management
To ensure effective implementation, banks have been instructed to establish dedicated departments for CMSME loans. These departments will assess risks and streamline the loan approval process, making it easier for small businesses to access funding.
By allocating a higher percentage of loans to CMSMEs and expanding financial access, Bangladesh Bank aims to drive economic growth, support entrepreneurship, and create more job opportunities across the country.