BB allows term loan facilities for CMS enterprises under credit guarantee scheme

Bangladesh Bank (BB) has allowed term loan facilities for the cottage, micro and small (CMS) enterprises under the credit guarantee scheme.

Earlier, the government has announced Taka 20,000 crore for the CMSME sectors for providing collateral-free loan facilities as working capital under the credit guarantee scheme of the Bangladesh Bank.

“The credit guarantee facility was open only to working capital in the CMS enterprise sector. COVID-19 has adversely affected the entire CMSME sector. In addition, CMS entrepreneurs often take only short-term loan or investment benefits instead of working capital loans. Considering the above context, the benefits of the credit guarantee scheme will be applicable for working capital as well as term loan or investment,” as per a BB circular issued on Monday.

The central bank launched the scheme on July 27 this year to facilitate the collateral loans for the country’s small-scale entrepreneurs under CMS category to offset the effects of Covid-19 in their businesses.