Cottage, SMEs to get 50pc credit

Women 15pc, manufacturing sector 40pc


At least 50 percent of credit should be preserved for cottage, micro and small enterprises and minimum 15 percent has to go to women entrepreneurs.

In a circular, Bangladesh Bank (BB) said, the banks and financial institutions (FIs) have to keep minimum 40 percent of the cottage, micro, small and medium enterprise (CMSME) sector lending to manufacturing sector, 25 percent for service sector and a maximum 35 percent for trading.

The central bank has issued a master circular for financing in the cottage, micro, small and medium enterprise (CMSME) sector.

In the circular issued on Thursday, BB updated the definition of CMSME in line with the National Industrial Policy and set a limit to the amount of credit the enterprises can avail, agency reports.

Moreover, the circular said, banks and financial intuitions (FIs) have to keep at least 25 percent loan and advance balance by 2024 and they have to increase minimum one percent loan and advance balance every year.

The highest ceiling of credit for cottage entrepreneurs is Taka 15 lakh while Taka one crore for manufacturing micro industries, Taka 25 lakh for micro service industries and Taka 50 lakh for micro entrepreneurs.

Small manufacturing industries will get maximum Taka 20 crore while Taka 5 crore for small service industries and small entrepreneurs. Medium manufacturing industries will get Taka 75 crore while Taka 50 crore for medium service industries, the circular said.