The Bangladesh Bank on Tuesday withdrew the ceiling on the loans going to the trading sector from its Tk25,000 crore refinance scheme.
The scheme for the small and medium enterprise (SME) sector was formed in July last year.
At that time, the central bank said that the manufacturing and services sectors would get a 70% loan from the refinance scheme and the rest would go to the trading sector.
But the central bank on Tuesday said banks and non-bank financial institutions (NBFIs) would not have to follow the ceiling of 30% for the trading sector as credit demand among traders is high due to acceleration in economic activities.
The easing of rules will be in place until June 30.
Under the scheme, lenders can distribute at least 75% of the loans among cottage, micro and small enterprises (CMSMEs) and a maximum of 25% among medium-sized firms.
They have to give out at least 60% of the refinance scheme as term loans, whose repayment tenure is more than one year.
The rest can be disbursed as working capital, which has to be repaid in one year.
Borrowers who take up term loans are entitled to a maximum grace period of six months.
The repayment period, including the grace period, will not be more than five years, said the BB notice.
The tenure of the refinance scheme is three years.
The high-priority sectors eligible for loans under the scheme include agriculture and food-processing industries, farm machinery manufacturers, readymade garments, knitwear, design and decorating companies, ICT, leather and leather goods industries, light engineering, and jute and jute goods industries.
The priority sectors are plastics and other synthetic industries, tourism, home textiles makers, renewable energy, automobile manufacturers and repairing industries, handicrafts, energy-efficient device makers, jewellers, toy industries, cosmetics and toiletries, furniture makers, and mobile, computer and television servicing industries.
Under the scheme, banks and NBFIs receive funds at 2% from the central bank, while borrowers get loans at a maximum interest rate of 7%.
But lenders with more than 10% of default loans can't access funds under the scheme.
Besides, they will have to have at least three years of business experience.
There are 7.8 million SME units across the country.
