SMESPD Circular Letter No. 09: Ensuring the achievement against target for CMSME loans/advances to women entrepreneurs

Bangladesh Bank
Central Office
Motijheel, Dhaka-1000
Bangladesh.

SMESPD Circular Letter No. 09
Date: Shrabon 20, 1428
August 04, 2021

Managing Directors/Chief Executives
All Scheduled Banks and Financial Institutions operating in Bangladesh

Regarding Ensuring the achievement against target for CMSME loans/advances to women entrepreneurs.

Reference is drawn to your attention to SMESPD Circular No. 2 dated September 05, 2019 and SMESPD Circular Letter No. 02 dated May 07, 2020.

2. In accordance with the instructions in paragraph 3 of SMESPD Circular No. 2/2019, a target is set to distribute at least 15% (fifteen percent) of the net loan and advance position of the CMSME sector to women entrepreneurs by the end of 2024. In accordance with paragraph 11.2 of the same circular, priority-based renewal facilities are provided to women entrepreneurs under the renewal scheme in the micro-enterprise sector. Subsequently, due to the Corona pandemic, to facilitate loans/advances in favor of women entrepreneurs, the interest/profit rate under the renewal scheme in the micro-enterprise sector was redefined as 3% (three percent) for banks/financial institutions and a maximum of 7% (seven percent) for customers through clause 02(b) of SMESPD Circular Letter No. 02/2020.

3. In order to raise the target for loans/advances provided to women entrepreneurs to 15% by the end of 2024, the following instructions must be followed in implementing the renewal scheme in the micro-enterprise sector:
   a) Providing this renewal facility exclusively against loans/advances provided to women entrepreneurs; and b) Setting the interest/profit rate for renewal under this scheme at 0.5% (zero point five percent) for banks/financial institutions and a maximum of 5% (five percent) for customers.

4. In addition, other instructions contained in the aforementioned circular and circular letter shall remain unchanged.

5. This directive is 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,
(Husne Ara Shikha)
General Manager
Phone: 9530502