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Tk 625b SME loan disbursed during Jan-Nov

imagesAmidst political unrest across the country during the last eleven months (January-November) of the current year 2013, all scheduled banks have distributed SME loans worth Tk 624.73 billion or 84 per cent of the set target of Tk 741.87 billion, which is a success for Bangladesh Bank (BB), Sukamal Sinha Chowdhury, general manager of SME and special programmes department of Bangladesh Bank (BB) told The Independent on Tuesday. The BB general manager said that the central bank has taken some effective measures to expand SME loan disbursement across the country. SME disbursement might increase this year from its target, said Sukamal.

“We need to expand SME lending across the country to alleviate poverty and economic disparity from society???, said Sukamal.

BB has introduced financial facilities to women entrepreneurs. It has opened a special department, namely SME and Special Programmes Department in 2010 which instructed all banks to provide bank loans to women entrepreneurs under SME financing, he also added.

All banks distributed Tk 535.44, 537.19 and 697.53 billion in the year 2010, 2011 and 2012 respectively. From 2010 to 2013, all banks distributed an amount of Tk 2,394.89 billion among 17.22 lakh SME entrepreneurs.

Banks in Bangladesh are being supported in SME financing initiatives with a refinance line from BB, which is funded by Bangladesh Bank and development partners like IDA, ADB and JICA.
Under the refinance scheme, Bangladesh Bank has provided Tk 23.97 billion (as of July 2012) to different banks and NBFIs at subsidised interest rates. 15 per cent of this fund (Tk 4 billion) is reserved for women
entrepreneurs.

As of 2013, the refinance amount stood at Tk 34.34 billion which was distributed to 41,541 entrepreneurs.
Aiming to create women empowerment in society, BB continuously encourages the country’s women entrepreneurs to receive banking facilities under SME financing, Sukamal added. BB is also working with Bangladesh Women Chamber of Commerce and Industries (BWCCI) to promote women entrepreneurs to facilitate banking facilities.

From 2010 to 2013, 83,738 women entrepreneurs received SME loan facilities of Tk 84.26 billion.
During this period, all banks distributed Tk 7.39 billion among 9,285 women entrepreneurs under a refinance scheme at the rate of 10 per cent interest rate.

On the other hand, agriculture loan disbursement achieved 38 per cent in the current fiscal year 2013-13. In the current fiscal year 20123-14, agri-loan target was set at Tk 145.95 billion. As of November 2013, all banks disbursed Tk 55.01 billion.

About half of the adult population is unbanked (48.49 per cent) in terms of deposit accounts in banks and are therefore deprived from essential financial services such as payments and remittance facilities, savings, loans and insurance services and subjected to unfair money lending practices.

So far 1.33 crore farmers have had bank accounts opened in 2013.

Considering the current political unrest in the country, BB also relaxed the rules for the affected sectors.
BB instructed banks to provide loans to the affected sectors such as the SME and Agro sectors. In 2008-09, all scheduled banks distributed an amount of Tk 92.84 billion while it was Tk 144.67 billion in the last fiscal year 2012-13.
Agriculture loan disbursement increased by 56 per cent during this period.
Moreover, BB introduced share cropper loans in 2009 and arranged a refinance scheme worth Tk 5 billion.
From 2011-12, BB relaxed the interest rate on import related crops such as garlic, ginger, onion, chili and turmeric. From 2011, BB distributed loan amounts of Tk 2.28 billion to farmers.

In the current fiscal year 2013-14, BB has set a target of Tk 9.1 million in loan disbursements at the rate of 4 per cent towards cultivating import related crops.

http://www.daily-sun.com/details_BGMEA-signs-deal-with-Prime-Insurance_722_1_3_1_24.html

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