Bangladesh Bank has increased the size of digital micro loan refinancing fund by 5 times. Earlier the size of this fund was Tk. 100 crore. And in the refinancing scheme, the size of this fund has been increased to tk.500 crores.
On Sunday (July 16), a circular from the Financial Inclusion Department of Bangladesh Bank has been sent to the Managing Directors and Chief Executives of all scheduled banks operating in Bangladesh.
According to the circular, considering the needs of the underprivileged and marginalized people of the country, a revolving refinancing scheme of Tk. 100 crore was formed earlier through Bangladesh Bank with the aim of providing digital micro loans or investment to them at low interest rates and forming ‘Digital Bangladesh’ of the government. The size of this fund has been increased to Tk.500 crores.
It further said that the funding has been increased to further accelerate the progress towards building a prosperous and smart Bangladesh by increasing demand for digital micro-credit, expanding financial inclusion and encouraging the marginalized population to use digital transactions.
Earlier in June 2022, the circular of Bangladesh Bank said, from this fund, customers will get loan facility from minimum 500 taka to maximum 50 thousand taka at maximum interest of 9 percent. The term of this loan will be maximum 6 months. From this fund, micro loans will be disbursed from scheduled banks using digital medium (Internet banking, mobile apps, mobile financial services, e-wallet etc.).
These instructions have been issued under the powers conferred by Section 45 of the Bank-Company Act, 1991. The directive issued by Bangladesh Bank will be effective immediately.
