Business loans provide entrepreneurs and startup founders the much-needed capital for expanding their operations. But lower cost of borrowing is what matters the most to them.
To spruce up credit demand and encourage more women to begin their own venture, Bangladesh Bank (BB) is now wooing the female entrepreneurs of the country with lower interest rates.
As the biggest step, the central bank has reduced the interest rate from 7 to 5% in line with its ambitious target of disbursing at least 15% of the loan amount earmarked for the small and medium-sized enterprises (SMEs) to women entrepreneurs by 2024.
At the same time, the central bank has reduced the interest rate from 3 to 0.5% at the institutional level as an incentive to banks and financial institutions for providing loans to women entrepreneurs.