Tk 1,290cr fund for migrant workers, others

The government has introduced a loan fund worth Tk 1,290 crore to help returning migrant workers, unemployed youths and rural entrepreneurs set up new businesses.

The scheme will place a special focus on women entrepreneurs as well.

Asian Development Bank provided the funds to form the refinance scheme, which will be implemented by Bangladesh Bank, according to a notice issued by the central bank yesterday.

Borrowers in the field of cottage, micro and small enterprises will be allowed to take a maximum of Tk 50 lakh from the scheme.

The loans will be disbursed through both banks and non-bank financial institutions (NBFIs).

The central bank will finance the fund at 1.5 per cent interest, after which the banks and NBFIs can lend it to end-users at 5.5 per cent interest.

The loan repayment tenure is five years.

Bangladesh Bank, the implementing agency of this project, will ink a participation agreement with each qualified bank and NBFI.

Each lender must have cottage, micro and small enterprise lending commitments and capacity, and have a previous track record of performance on lending to relevant sectors.