Women entrepreneurs to get 30% of Tk 200cr incentive package: SME Foundation

The SME Foundation will disburse 30 per cent of the Tk 200-crore incentive package to the small and medium entrepreneurs run by women to recoup the losses of Covid-induced fallout.

Mafizur Rahman, managing director of SME Foundation, made the comment at a virtual meeting on "preparations for disbursement of loans" with the representatives from SMEs and other business bodies across the country.

The entrepreneurs will get loans at a 4 per cent interest under the incentive package, he said.

The loan can be repaid in a maximum of 24 monthly instalments based on the banker-customer relationship, Rahman added.

"We are going to have an agreement with the bank and non-bank financial institutions in the third week of this month. Then, the disbursement process could be started," said Farzana Khan, general manager of the SME Foundation.

The loan ceiling has been reduced from Tk 75 lakh to Tk 50 lakh to extend loans to more entrepreneurs at the marginal level, the SME Foundation said in the press release.

Earlier on September 2, the loan disbursement policy was amended at a meeting of the Board of Directors of the SME Foundation.

In light of the amendment, 10 per cent of the loan will be disbursed among the SME entrepreneurs, 70 per cent to the entrepreneurs in the manufacturing and services sectors and 30 per cent to the trading sector.

However, this rate can be up to 40 percent for women entrepreneurs in the trading sector.