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

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

The central bank has directed to continue this facility from January 2025. Although this facility was supposed to be available until December 2024.

Bangladesh Bank launched this scheme in 2019. At that time, both male and female entrepreneurs were allowed to take this loan. However, it was later determined only for women entrepreneurs. The amount of this scheme was recently doubled to Tk 3,000 crore.

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

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