Women entrepreneur Development Unit (WEDU)
Women entrepreneur Development Unit (WEDU) formed at all branches of Bangladesh Bank including SME & Special Programmes Department of Head Office vide Administrative Circular No.-21 of Human Resources Department-1 dated-30/11/2014. This Unit renders business friendly services to women entrepreneurs’, receives complain and settle thereof, carries out promotional activities for the development of women entrepreneurs’ and also monitors and evaluates the women entrepreneur’s development initiatives of Banks/Non-Bank Financial Institutions.
To encourage women entrepreneurs in taking initiatives or becoming women entrepreneur WEDU operates Small Enterprises Refinance Scheme to provide low cost fund. This unit is also entrusted with the responsibilities of promoting women entrepreneurship and supporting women entrepreneurs.
Policy Initiatives for Women Entrepreneurs (Updated)
Financial Inclusion has been prioritized in Bangladesh Bank’s policy to include small entrepreneurs and a large number of women in Financial activities. To ensure this, Bangladesh Bank has taken a number of policy initiatives for women entrepreneurs. These are as follows:-
1. According to the policy of SME & Special Programmes Department as regards financing women entrepreneurs Banks/FIs must maintain 10% of their total CMSME loan portfolio and the percentage will have to be raised at least 15% by the year 2024 (SMESPD Master Circular No.-02, Date-05/09/2019). This will include more women in the financial system which will ultimately expedite the women economic empowerment.<
2. The size of Bangladesh Bank own source fund ‘Small Enterprise Refinance Scheme’ has been increased from Tk850 crore to Tk1500 crore to include more entrepreneurs specially women entrepreneurs from remote areas in the financial activities (SMESPD Circular Letter No.-02, Date-07/05/2020). The eligibility criteria of availing CMSME Refinance Facility by the state owned commercial Banks has been relaxed to expedite the process.
3. To encourage women entrepreneurs for taking CMSME initiatives, Refinance Facility is being provided at lower rate of interest. Bank & Financial Institutions can avail Refinance Facility at 3% interest rate(which was earlier 5%) from BB against their disbursed CMSME loan so that the customer can avail the same at 7% interest rate (which was earlier 9%) {SMESPD Circular Letter No.-02, Date-07/05/2020}.
4. To tackle financial challenges due to outbreak of COVID-19 pandemic Govt. announced stimulus packages of BDT Tk 20,000 crore for the CMSME sector in the country. Under this package, the banks will provide working capital support to the CMSME sector at 9% interest rate, of which the entrepreneurs will pay 4% and the rest 5% will be reimbursed by the government to the Banks & Financial Institutions as subsidy. Banks/FIs should disbursedat least 5% of their total allotted portion of thesaid package annually to the Women Entrepreneurs(SMESPD Circular No.-01, Date-13/04/2020).
5. BB also introduced Tk 10,000 crore Refinance Scheme (Revolving) to provide working capital facility for the CMSMEswithin this stimulus packages. Banks & Financial Institutions can avail this refinance facility up to 50% of their disbursed amount against stimulus packages at 4% interest rate(SMESPD Circular No.-02, Date-26/04/2020).Women Entrepreneurs can also avail these facilities.
6. Minimum 15%of all refinance windows of SME & Special Programmes Departmenthas been allotted for the women entrepreneurs.For greater inclusion of marginal and home based women entrepreneurs loan limit has been set up to BDT 10,000/- and group based lending of up to BDT 50,000 is permitted(SMESPD Master Circular No.-02, Date-05/09/2019).
7. Regulatory provision for collateral free loan for women entrepreneurs against personal guarantee up to BDT 25 lac has been made(SMESPD Master Circular No.-02, Date-05/09/2019). Banks & Financial Institutions has been advised to consider social security, personal guarantee & group guarantee, also advised not to put any pressure to or compel them for guarantee of specific person viz high officials, well-off relatives & husband (SMESPD Circular Letter No.-01, Date-19/12/2019).
8. Bangladesh Bank Introduced Simplified Loan application Form in Bengali for CMSME Entrepreneurs including Women Entrepreneurs to reduce difficulties in meeting documentation requirements(SMESPD Master Circular No.-02, Date-25/09/2016). Banks & Financial Institutions has been advised to give information to the CMSME entrepreneurs within 10 working days of receiving complete loan application(SMESPD Master Circular No.-02, Date-05/09/2019).
9. Bangladesh Bank advised all Banks & Financial Institutions to provide 03-06 months grace period facility for the term loan (1yr-5yr) in Favor of Cottage, Micro & Small (CMSME) Entrepreneurs including women entrepreneurs based on Banker-Customer relationship(SMESPD Master Circular No.-02, Date-05/09/2019).
10. To extend credit facilities to new women entrepreneurs instruction has been given to all branches of Banks and Financial Institutions to find out at least three women interested in having enterprise or becoming women entrepreneurs ‘within the catchment area for imparting training in the field of their interest for capacity building and above all extend credit facilities to minimum one of those training receivers(SMESPD Master Circular No.-02, Date-05/09/2019).
11. To strengthen monitoring activities of women entrepreneur’s development initiatives Banks and Financial Institutions are advised to set up Women entrepreneurs’ Development Unit (WEDU) in all of their Head Office including Regional Offices (if any).(SMESPD Master Circular No.-02, Date-05/09/2019)
12. To ensure prompt services for Women Entrepreneurs Banks and Financial Institutions are advised to set up separate “Women Entrepreneur’s Dedicated Desk” in each branch of Banks and NBFIs. The desk is advised to provide support to prospective women about the preparation of loan able business proposal, marketing strategies etc. (SMESPD Master Circular No.-02, Date-05/09/2019).
13. Recently Bangladesh Bank issued Lead Banks Guidelines (15 January 2020) & developed a Lead Bank Calendar to disseminate CMSME related information in the grassrootslevel through discussion, seminar & view exchange programmes (Virtual Meeting through Zoom App.) This Lead Bank will also work for the implementation of Govt. stimulus packages, BB Refinance Schemes & women entrepreneurs development activities.
14. Instruction has been given to Banks and Financial Institutions for prioritizing women entrepreneurs in extending credit facilities and to take capacity building initiatives for their existing and prospective women clients.
15. Bangladesh Bank has also made several remarkable initiatives to create entrepreneurs specially women entrepreneurs. BB is working on Credit Guarantee Scheme to create greater access to finance to SMEs, especially to women entrepreneurs, in different cluster areas.
16. If any women entrepreneur face problem or harassment in availing CMSME loan facility or interested to know CMSME related information, advice, consultation they can contact directly Problem Solutions Centre of SME & Special Programmes Department through +88029530220, submitting written application etc.
Selection of lead Banks in each district to coordinate with other local scheduled banks for SME lending:-
Our Stand:-Bangladesh Bank(BB) issued Lead Bank Guidelines (15 January 2020) & developed a Lead Bank Calendar for the year 2020. This is a yearly calendar & selected lead Bank for every district.Lead Bank disseminates CMSME related information like CMSME target based lending, sector wise financing,women entrepreneur financing in the grass root level through discussion. Seminar, view exchange programmes (Virtual Meeting through Zoom App.) At outbreak of COVID-19 Pandemic Lead Bank TOR has been revised.
Lead Bank play an important role in organizing CMSME view exchange programmes engaging all Divisional/District Level bank Branches in consultation with BB Branch Offices. At the outbreak of COVID-19 Pandemic Govt. announced stimulus packages of BDT Tk 20,000 crore for the CMSME sector in the country. Under this package, the banks will provide working capital support to the CMSME sector at 9% interest rate, of which the entrepreneurs will pay 4% and the rest 5% will be reimbursed by the government to the banks/NBFIs as subsidy. Lead Bank will work for the implementation of Govt. stimulus packages.
BB introduced Tk 10,000 crore Refinance Scheme (Revolving) to provide working capital facility for the CMSMEswithin this stimulus packages. Banks & Financial Institutions can avail this refinance facility up to 50% of their disbursed amount against stimulus packages at 4% interest rate. Women Entrepreneurs can also avail these facilities. Lead Bank will also play a pivotal role in implementing BB Refinance Schemes & women entrepreneurs development activities.
Lead Bank facilitates affected entrepreneurs specially women entrepreneursdue to outbreak of COVID-19 to avail hassle free credit facilities under stimulus packages.
Lead Bank cannot be selected for any other purposes which are not stipulated in the TOR of Lead Bank set by BB.