Bangladesh Bank yesterday increased the volume of a refinance scheme dedicated to marginal and landless farmers, low-income professionals and small businesses.

The central bank rolled out the fund worth Tk 200 crore in 2014, but it has since widened the amount to Tk 500 crore given the ongoing economic hardships brought on by the coronavirus pandemic. Earlier, underprivileged people who are allowed to open accounts with an initial deposit of Tk 10 got loans from the fund but now, Tk 50 and Tk 100 account holders can also avail the scheme.

Under the programme, clients can borrow with a 7 per cent interest rate instead of the previous 9 per cent.

In addition, banks are allowed to manage the fund from the central bank scheme by paying 1 per cent interest in contrast to the previous 4 per cent. Clients can secure loans from the scheme without any collateral.

An individual will be permitted to take a maximum of Tk 5 lakh from the scheme, which has a repayment tenure of three-and-half years, including a six-month grace period.