Regulatory Alerts2022-01-23
Added
SMESPD Circular No. 01: Regarding Credit Guarantee Facility for Marginal/Landless Farmers, Low Income Professionals, School Banking Account Holders and Small Traders who have accounts of TK.10/50/100
The document establishes the Financial Inclusion Credit Guarantee Scheme, increasing the guarantee fund to BDT 500 crore to support marginal farmers, low-income professionals, school banking account holders, and small traders with accounts of BDT 10, 50, or 100. Participating banks are authorized to provide loans without collateral security, though personal guarantees from up to two individuals are permitted, and must pay guarantee fees from their own resources at a rate of 1% for the first year and 0.50% or 0.75% annually thereafter based on their NPL ratios. The scheme caps portfolio guarantee coverage at 30% of total registered loans, with individual loan coverage limited to 80%, and requires banks to maintain specific provisions for classified loans while retaining full legal recourse for recovery.