Regulatory Alerts2023-07-26
Added
SMESPD Circular Letter No. 07: Incentive facility for loans & advances provided to women entrepreneurs on CMSME sector
The document establishes a 1% incentive facility for banks and financial institutions and their customers to encourage the timely coordination, realization, and repayment of loans with interest or profit rates up to 5% provided to women entrepreneurs in the Small Enterprise sector under the CMSME scheme. The incentive amount is calculated based on the principal and utilization period of all regular loans, applies to renewed working capital or overdraft facilities, and excludes classified loans. All other instructions regarding incentives for loans to women entrepreneurs issued in previous circulars remain unchanged.
Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh. SMESPD Circular Letter No. 07 Date: Shrabana 11, 1430 July 26, 2023
Managing Director/Chief Executive All Scheduled Banks and Financial Institutions operating in Bangladesh
Regarding the provision of incentive facility against loans/advances distributed to women entrepreneurs in the CMSME sector.
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Reference is invited to your attention to SMESPD Circular No. 08 dated August 17, 2021, SMESPD Circular Letter No. 02 dated June 20, 2022, SMESPD Circular Letter No. 09 dated August 04, 2021, and SMESPD Circular Letter No. 06 dated June 25, 2023, on the subject cited above.
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Through the aforementioned circulars and circular letters, it has been decided to provide an incentive facility at the rate of 1% to banks and financial institutions and each customer to encourage the timely coordination/realization/repayment of loans with interest/profit distributed up to 5% in the Small Enterprise sector for women entrepreneurs under the renewal scheme.
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The following instructions/explanations shall be followed in calculating the amount of incentive: a) In calculating the amount of incentive, the amount and utilization period of all regular loans/advances shall be considered. b) Example: If CC/OD (CC, OD, etc.) loans/advances are renewed within the period, an incentive facility shall be available against them. c) If classified, no incentive facility shall be available against the said loan/advance.
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In addition, all other instructions regarding the provision of incentives against loans/advances distributed to women entrepreneurs in the aforementioned circulars and circular letters shall remain unchanged.
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These instructions have been issued under the powers conferred by Section 45 of the Bank Company Act, 1991 and Section 18 of the Financial Institutions Act, 1993.
Yours faithfully,
(Mohammad Ashiqur Rahman) Director (SMESPD) Phone: 9530502