The Bangladesh Bank has reserved 10 per cent of its SME sector refinancing fund for women entrepreneurs. The fund will be available at a maximum annual interest rate of 10 per cent to encourage women entrepreneurs in trade, commerce and productive sectors. It may be mentioned that the Central Bank has mobilised a fund of about Tk 3,400 million contributed by the government and development partners as refinance facilities for the commercial banks to lend to small and medium enterprises.

The central bank apprised the commercial banks of its new guideline of utilising the fund facility at bank rate (5 per cent) to sanction loans to their clients according to a circular released on February 11. The guidelines will be effective immediately and applicable only for fresh loans to be sanctioned after the circular. The Bangladesh Bank has defined the business sector to be entitled to the fund in three sectors services, trade and industrial and set ceiling of amount of loan in accordance with the nature of business.

Commercial banks or financial institutions would be able to provide term loans or working capital to an individual entrepreneur between Tk 100,000 and Tk 5,000,000 having 100 percent refinancing facility at the bank rate. Banks and financial institutions have been allowed to consider providing collateralfree loans of up to Tk 15,00,000 on personal guarantee. Consumer credit or personal loan will not be entitled to this facility.