Women entrepreneurs seek more bank loans

Khaleda Sultana, founder and managing director of “Jutemar,” produces various jute products for the local market and export. United Commercial Bank helped her with a small and medium-sized enterprise (SME) loan of Tk6 lakh. But now, Khaleda needs more money to expand her business.

Besides Khaleda, many other women entrepreneurs are seeking more loans from banks, who were showcasing their products at the Banker-SME Women Entrepreneur Fair-2019. The fair concluded on Sunday.

The SME and Special Programs Department of Bangladesh Bank organized the three-day fair which began on Friday, to promote women entrepreneurs and their products.

Asma Haque Kanta, another entrepreneur and proprietor of “DHABOL” is showcasing several food items, including sauce, spices, and various cakes. NCC Bank provided her Tk5 lakh as an SME loan. Entrepreneurs like her need more loans in larger amounts, if they are to develop their businesses.

The minimum loan for women entrepreneurs is Tk10,000 in the cottage industry sector, Tk20,000 in the micro sector, and Tk50,000 in the small sector.

In addition, the maximum credit limit will be determined according to the risk management policies approved by the board of directors of respective banks and financial institutions, according to the central bank.

Speaking to the Dhaka Tribune, United Commercial Bank senior officer (SME Division), Bushra Hasin, said: “We look at businesses conducted by women entrepreneurs, and their size, in order to fix the amount of loans. We provide SME loans for 3 to 4 years.”

The repayment behavior among most women entrepreneurs is satisfactory, she added.

According to the information desk of Bangladesh Bank, 58 stalls of 54 banks showcased products made by women entrepreneurs they funded. The fair ended yesterday.

Documents women entrepreneurs need to apply for a loan:

Women entrepreneurs will require trade licenses, National ID card, Bank statement, Land records, copies of telephone bills, house rent contracts, E-TIN, stocks and their current prices, financial statements from the last one to three years of business, value added tax (VAT) certificates,  and IRC and IRE certificates (for export-import business).
Source: https://www.dhakatribune.com

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