Govt releases Tk 570cr to aid small firms
The government has released Tk 570 crore from the Tk 1,500 crore stimulus package for his or her disbursement among small traders, entrepreneurs and farmers to greatly help them survive the ongoing pandemic.
Eight federal government and semi-government organizations will disburse the fund this fiscal year as the rest of the sum will the disbursed within the next fiscal year.
The government approved the brand new packages on January 17 with an aim to improve the living standards of marginalised people living in rural areas.
The loans will get as grants among cottage, micro and tiny enterprises (CMSE) in rural areas that previously had no usage of formal banking channels.
Borrowers may avail the loan at 4 per cent interest while the lenders will demand this interest as deal costs.
The Bangladesh Rural Advancement Board got the best allocation of Tk 150 crore for disbursement within 2020-21 out of its total allocation of Tk 300 crore for just two fiscals, including 2021-22.
Of the rest of the amount, Tk 100 crore each has been allocated for the Palli Daridro Bimochon Foundation, Social Development Foundation and SME Foundation.
Tk 50 crore will head to both the Bangladesh Small and Cottage Industries Company (BSCIC) and Tiny Farmer Development Foundation while the NGO Basis and Joyeeta Foundation have been provided Tk 10 crore each.
Micro businesses and farmers that cannot avail loans from banks because of a lack of necessary documentation will get funds beneath the package.
The finance division has set some conditions for disbursing the bank loan.
Borrowers will have to repay the mortgage loan within 2 yrs in 18 regular instalments with a good grace amount of six months.
The disbursing agencies will need to formulate another policy to ensure convenience for potential borrowers from the package, which also aims to expedite Bangladesh's recovery from the Covid-19 fallout.
The lenders will need to ensure receipt of the mortgage loan at the marginalised level clients.
The grant is non-refundable while loan providers will have to deposit the total collected money, like the principal amount and interest, by forming another revolving fund.
It really is mandatory for the lending firms to send soft copies of the detailed expenditure statements regarding disbursements against a particular organization to the finance division.
The agencies may also have to properly follow all of the regulations while disbursing the fund.