Banks now can charge maximum 9 percent interest for lending funds to women entrepreneurs and small enterprises, according to a Bangladesh Bank directive yesterday.
Commercial banks will be able to charge the bank rate plus a maximum 4 percent interest rate at client level, according to the directive. At present, the bank rate is 5 percent.
The move aims to bring more women entrepreneurs into businesses and productive sectors, according to the circular.
Currently, BB offers several refinance schemes for women entrepreneurs in cottage, micro and small enterprises and agro-business.
Under the refinancing schemes, banks first disburse funds among borrowers and then seek reimbursement from BB. For the service, commercial banks get funds from the central bank at lower-than-market rates.
The new lending rate came after some banks were found to be charging more than 10 percent whereas the average lending rate is in the single digit, said a senior executive of the central bank.
The weighted average lending rate was 9.77 percent in February, according to BB data.
Star Business Report
