Bangladesh Bank issues master circular for CMSM enterprises

Bangladesh Sangbad Sangstha . Dhaka | Published: 00:00, Sep 06,2019


Bangladesh Bank has issued a master circular for financing in the cottage, micro, small and medium enterprise (CMSME) sector.

The central bank, in a circular, on Thursday updated the definition of CMSME in line with the National Industrial Policy and set a limit on the amount of credit the enterprises can avail.

Moreover, the circular said, banks and financial intuitions have to keep at least 25 per cent loan and advance balance by 2024 and they have to increase minimum one per cent loan and advance balance every year.

At least 50 per cent has to be kept for cottage, micro and small enterprises and minimum 15 per cent lending has to go to women entrepreneurs.

The circular also said banks and FIs would have to keep minimum 40 per cent CMSME lending to manufacturing sector, 25 per cent for service sector and a maximum 35 per cent for trading.

The highest ceiling of credit for cottage entrepreneurs is Tk 15 lakh while Tk 1 crore for manufacturing micro industries, Tk 25 lakh for micro service industries and Tk 50 lakh for micro entrepreneurs.

Small manufacturing industries will get maximum Tk 20 crore while Tk 5 crore for small service industries and small entrepreneurs. Medium manufacturing industries will get Tk 75 crore while Tk 50 crore for medium service industries, the circular said.

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