Bangladesh Bank has set a new target for the amount of loans to be given to the cottage, micro, small and medium (CMSME) industry sector. According to the new policy, marginal informal entrepreneurs at the individual level will also get collateral-free loans. Banks and financial institutions will be able to give loans of up to five lakh taka to entrepreneurs who do not have a trade license. In addition, Bangladesh Bank has brought policy changes to increase the scope of loans to women entrepreneurs.

The directive states that 27 percent of the bank’s total loan balance will be given to the CMSME sector by 2029. Although currently, 19 percent of the total loan has been distributed to this sector against the target of 25 percent. At the same time, instructions have been given to increase the loan amount to this sector by 0.5 percent every year. It was also informed that the bank’s current target of 25 percent of the total loan balance will be achieved in the CMSME sector by the current 2025.

Considering the challenges at the field level in cluster financing, the previously given target has been reduced from 12 percent to 10 percent. The target for financing women entrepreneurs has been kept unchanged at 15 percent. The target for debt sustainability in the services sector has been reduced from 25 percent to 20 percent, and in the business sector, the maximum has been increased from 35 percent to 40 percent.