Clicky
Business

SMEF urges FIs to provide loan for small entrepreneurs


Published : 13 Jan 2021 08:59 PM

SME Foundation has urged the country's financial institutions to disburse the fund of stimulus package accordingly to help protect small entrepreneurs.

The Small and Medium Enterprise Foundation (SMEF), in a statement issued on Tuesday, said the Bangladesh Bank (BB) has extended the Tk 200 billion loan disbursement period until March 31 for the Cottage, Small and Medium Enterprises (CSMEs) amid the ongoing coronavirus pandemic. 

The foundation also has expressing gratitude to the central bank for extending loan disbursement period under the stimulus package. 

"The SMEF is grateful to the central bank for stretching the loan disbursement period for the Cottage, Small and Medium Enterprises," the statement said.

According to a circular issued by the Bangladesh Bank's SME and Special Programmes Department, the bank or financial institutions, which couldn't disburse the targeted amount of credit, will get scope to do so until March 31.

The Prime Minister declared a stimulus package for the CSMEs, which was scheduled to be disbursed within December 31 in 2020.

The financial institutions that couldn't meet the target within the given deadline have been directed by the BB to submit a month-wise plan for disbursing the loan.

According to the BB estimate, banks and financial institutions disbursed Tk 105 billion, out of Tk 200 billion allocation, as of December 17 last.

"In this circumstance, the SMEF is requesting the banks and financial institutions to play their respective roles to disburse the remaining funds to help protect the small entrepreneurs," the statement added.