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BB Sets 27% Loan Target for CMSMEs to Boost Employment

Staff Correspondent; Banking 2025-03-17, 4:00pm

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Bangladesh Bank has introduced a major policy change aimed at stimulating growth and employment in the Cottage, Micro, Small, and Medium Enterprises (CMSME) sector.


Under the new policy, the central bank has mandated that 27 percent of loans be allocated to CMSMEs over the next five years. This initiative, aimed at supporting small businesses and job creation, was announced at a press conference held at Bangladesh Bank’s headquarters in Motijheel on Monday.

The event was attended by Mustafizur Rahman, Executive Director of Bangladesh Bank; Noushad Mustafa, Director of the SME Department; and Habibur Rahman, Assistant Spokesperson.

A key aspect of the new policy is that people involved in f-commerce and e-commerce will be eligible for loans of up to Tk 5 lakh under the CMSME scheme. Additionally, small traders without trade licenses will now be eligible for loans.

The revised master circular also includes an updated definition of women entrepreneurs. A company will be considered woman-led if a woman holds at least 20 percent ownership and 51 percent of its employees are women. Previously, the ownership threshold was set at 51 percent.

Furthermore, banks will now be required to establish separate departments to manage CMSME loans and assess associated risks.