Banks and financial institutions have to disburse at least 50% of their Cottage, Micro, Small and Medium Enterprises (CMSME) cluster loans to 19 "high-priority" and "priority" clusters, according to a circular issued by the SME and Special Programmes Department of the Bangladesh Bank on Sunday.
The six high-priority sectors of the CMSME are agriculture/food processing and agricultural machinery manufacturing industries; ready-made garments, knitwear, design and decoration; ICT; leather and leather products industry; light engineering and jute and jute industries.
The 13 priority sectors include plastics and other synthetic industries, tourism industry, home textiles, renewable energy, jewellery, toys, etc.
The new circular provides customers to have the opportunity to take loans from multiple banks, which was not specifically mentioned earlier. However, a customer cannot exceed the maximum loan/investment limit.
In the case of manufacturing cottage enterprises, the maximum limit of consumer loans is Tk15 lakh.
In the case of micro-enterprises, manufacturing industries will get Tk1 crore and service industries will get Tk25 lakh.
Manufacturing small enterprises will get Tk20 crore and service industry Tk5 crore.
Manufacturing entities in the medium enterprise will get Tk75 and service industry Tk50 crore.
The circular states that CMSME loans can be given to manufacturing or service sectors. Financial institutions cannot give this loan to the trading sector.
According to the central bank rules, 10% of the loans given to the CMSME sector till December 2022 should be given to the clusters designated by the government. The amount should be raised to at least 12% by 2024 gradually. Half of this cluster loan will be given to 19 clusters designated by the central bank and the remaining half to other clusters, said a senior official of the central bank.