Bangladesh Bank on Sunday imposed a lending rate ceiling at 6 per cent on customers’ end from the refinance package formed jointly by the government and the Asian Development Bank for the development cottage, micro, small and medium enterprises (CMSMEs).
Apart from fresh loans, the lending rate would also be effective for existing loans as well from November 18, said the notice from the central bank.
The change in interest rate was made to keep the strength of the CMSMEs intact amid the pandemic and also to ensure adequate term loan facility for employment generation.
The new rules also stated that banks and financial intuitions would get funds from the second small and medium-sized enterprise development project (SMEDP-2) at 2 per cent for the disbursement to the customers at a maximum of 6 per cent.
On November 15, 2017, the government in association with the ADB formed the $240 million refinance fund for the development of CMSMEs.
As per the initial rules, the central bank disbursed funds to the banks and financial institutions at 4 per cent, asking the entities to disburse the sum to the CMSMEs at the market rate.
However, the central bank barred the banks and financial institutions from charging women CMSMEs more than 10 percent.
The BB said that the other instruction would remain unchanged.