Bangladesh Bank has directed the banks and financial institutions to continue the 1 percent incentive facility for women entrepreneurs of the SME sector by repaying the loans within the stipulated time.

The central bank gave this order in a notification on Wednesday (January 8).

The central bank has given instructions to continue this facility from January 2025. However, this facility was supposed to last till December 2024.

Bangladesh Bank launched this scheme in 2019. Men and women entrepreneurs were then allowed to take this loan. But it was later prescribed only for women entrepreneurs. The latter doubled the amount of this scheme to 3 thousand crore rupees.

Women entrepreneurs of small, micro, cottage and medium industries can take loans from this scheme. Besides, banks can charge a maximum of 5 percent interest against the loan. However, there was a condition that no incentives could be given against classified loans.

It further states that all regular loans, investment amount and usage period shall be taken into consideration while determining the incentive amount.