SMESPD Circular Letter No. 01: Restructuring of Refinance Fund for Cottage, Micro, Small, and Medium Enterprises (CMSME)

Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh.

SMESPD Circular Letter No. 01 Date: 05 February 2026 22 Magh 1432

Managing Directors / Chief Executive Officers All Scheduled Banks and Finance Companies Operating in Bangladesh

Dear Sir,

Regarding the restructuring of the Refinance Fund for Cottage, Micro, Small, and Medium Enterprises (CMSME).

Reference is invited to SMESPD Circular No. 01 dated 17 March 2025 on the subject mentioned above.

2. In order to increase financing in favor of new entrepreneurs, paragraph 14.3.3 of the said circular is hereby replaced as follows:

"In the conventional banking system, the customer profit rate shall be a maximum of 7%, and in the case of Shariah-based financing, the customer profit rate received shall be determined within the framework of the approved Shariah investment policy, but shall not exceed 7%. The profit rate provided by Bangladesh Bank to banks and finance companies on refinancing shall be 2%."

3. The amounts specified in paragraphs 14.1, 14.2, and 14.3 of the aforementioned circular are hereby enhanced as follows: 'Refinance Fund for Industrial Establishment for Agricultural Product Processing' to 2,000 (Two Thousand) Crore Taka; 'Refinance Fund for Small Enterprise Sector for Women Entrepreneurs' to 4,500 (Four Thousand Five Hundred) Crore Taka; and 'New Entrepreneur Refinance Fund' to 500 (Five Hundred) Crore Taka.

4. These directives are issued under the powers conferred by Section 45 of the Bank Company Act, 1991, and Section 41 of the Finance Company Act, 2023.

These directives shall take immediate effect.

Yours faithfully,

(Nawshad Mostafa) Director (SMESPD) Phone: 9530502

smespd@bb.org.bd 50119