bdnews24.com :
The central bank has floated a Tk 2 billion revolving fund to lend money for income-raising activities of the low-earning people, allowed to open bank accounts with initial deposit of only Tk 10.
Bangladesh Bank on Thursday signed agreements with 10 banks for handling the collateral-free lending.
The banks will receive money from the fund at 5 percent interest rate and distribute it to the clients at a slightly higher interest rates based on bank-client relation.
The central bank, however, asked the banks not to charge any client more than 10 percent interest.
According to Bangladesh Bank, the main criteria of disbursing the loan would be clients’ professional skills and inclination to do physical labour.
Speaking at the agreement-signing function, central bank Governor Atiur Rahman said: “A sustainable development of a country is not possible only through the activities of big entrepreneurs and corporate entities.”
“Taking into consideration the fact, this Tk 2 billion revolving refinancing fund has been constituted to bring this huge population, capable of working, to the mainstream economy,” he added.
Though 32 banks expressed interest to use Tk 1.29 billion from the fund, the central bank signed agreement with the 10 banks in the first phase.
They are Sonali, Janata, Agrani, Rupali, Krishi, Pubali, NCC, Standard, BRAC and NRB banks that together will take Tk 1.10 billion from the fund.
Bangladesh Bank introduced the provision to allow low-income people, including farmers and readymade garment factory workers, to open bank accounts with an initial deposit of only Tk 10 to bring them under banking services.
The number of such low-income account holders reached around 15 millions, the governor said and added the objective of the fund was to invigorate the rural economic activities by keeping the accounts active.
He said the people maintaining Tk 10 initial-deposit accounts could avail themselves of the loans directly from banks or through NGOs.
