Experts at a policy dialogue highlighted the new provisions included in the updated circular, such as alternative medium of credit distribution, group credits, extension of grace period, cluster financing & refinancing for informal entrepreneurs, women entrepreneurs and new entrepreneurs, extended agricultural credit for marginal entrepreneurs and collateral-free loan.
BUILD jointly with Bangladesh Bank organised the policy dialogue on the CMSME Financing Master Circular 2025 at the Conference Room of BUILD.
Nawshad Mustafa, Director, SMESPD, Bangladesh Bank, Sr Vice President, Bangladesh Chamber of Industries, representatives from BSCIC, PKSF, Ministry of Industries, several private sector representatives and women entrepreneurs were present to put forward their valuable insights and suggestions.
BUILD conducted a small survey to understand the bankers’ perspectives that were presented along with a summary observation of BUILD in the Dialogue by Pallab Bhattachareja Additional Research Director, and Asif Haider, Research Associate, BUILD, chaired by Ferdaus Ara Begum, CEO, BUILD.
The presentation viewed that informal entrepreneurs will be allowed to get a loan up to BDT 5 lacs, but how they will be defined is not clear, banks still do not recognise that UBID, DBID & PRA as substitutes for a Trade License. Credit limit has been increased in all categories than that of the circular of 2019.
However, loan ceilings for services are getting more preference than for manufacturing.
On the other hand, while alternative mediums of CMSME credit have been increased through different alternative mediums such as agents, Micro Finance Institution approved by the MRA etc., however refinancing scheme of BB will not be applicable to the credit through MFI linkage.
In the open floor discussion, Suman Chandra Saha, DGM, SME Foundation, stressed the need to align the Credit Guarantee Scheme with the Master Circular and recommended engaging BSEC with equity financing. To prepare a database of SMEs, he highlighted the increasing budget of the SME Foundation.
Mansurul Karim, Director, BSCIC, stated that BSCIC mainly works with industries but not with entrepreneurs. He further stated that BSCIC lands can be used as mortgages. They also raised the point that the credit mainly goes to the export-oriented sectors while
non-export-oriented sectors need to have access.
