Bangladesh: BB launches Tk 100cr refinance scheme for new entrepreneurs

Dhaka, June 27 (New Age): Bangladesh Bank on Thursday introduced a refinance scheme worth Tk 100 crore for the new entrepreneurs to encourage self-employment.
The BB in a circular to banks and non-bank financial institutes said that the entrepreneurs, who had not accumulated any business experiences earlier, would be able to receive the loans from the refinance fund.
The maximum tenure of the loan is five years with an interest rate of 10 per cent.
The entrepreneurs will avail a grace period of six months to repay the loan, the BB circular said.
Each of the clients will get a maximum amount of Tk 10 lakh in loan without any mortgage but the banks and the NBFIs will be able to take
personal guarantee or third party guarantee from the clients.
The clients will get a maximum Tk 25 lakh from the scheme by giving mortgage to the banks and the NBFIs, the circular said.
The entrepreneurs, however, will have to arrange 20 per cent of the total costs of any project. They have to attain technical education about their proposed projects.
The entrepreneurs must hold training certificates from government and non-government institutions which are recognised by the central bank.
The BB asked the banks and the NBFIs to give priority to women entrepreneurs and projects on import alternative products, export-oriented businesses, innovative and creative enterprises and ICT related businesses in disbursing the loan under the refinance fund.