The Bangladesh Bank has asked all banks and non-bank financial institutions (NBFI) to ensure simplicity in every stage and quick disposal while considering loan applications of the affected cottage, micro, small and medium enterprises (CMSMEs) under the stimulus package.
To make the loan receiving procedures smooth for the CMSMEs from the Tk20,000 crore stimulus package, the central bank on Thursday issued a circular, giving a set of instructions in this regard.
The Bangladesh Bank also asked the banks and NBFIs to set up a dedicated desk at each branch to help potential CMSMEs by putting up a notice containing detailed information on the package in their respective branches.
Besides, the banks were asked to follow its instruction that was issued last year in taking personal, social and group guarantee as mortgage from the borrowers.
If found necessary, the central bank suggested that banks or NBFIs take support from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and other associations affiliated with the FBCCI for the selection of borrowers, loan dissemination and its supervision, and to carry out recovery activities.
The financial entities have also been asked to report to the central bank on the loan disbursement and recovery.
On March 25, the government announced a Tk20,000-crore stimulus package for the CMSMEs so that the businesses can resume their operations after the coronavirus pandemic, setting interest rate at 9 percent.
Of the interest, the government would bear 5 percentage points and the remaining 4 percentage points by borrowers.
Furthermore, the Bangladesh Bank also announced that it would contribute 50 percent to the loans which the banks and NBFIs would disburse to the CMSMEs under the stimulus package.