Bangladesh Bank has set a target for banks and financial institutions to disburse 27 percent of their total loans to cottage, micro, small, and medium enterprises (SMEs) by 2029 to promote business growth and employment.

The central bank introduced a revised policy for the sector on Monday, allowing individuals involved in f-commerce and e-commerce to avail themselves of loans of up to Tk 5 lakh under the scheme.

Additionally, small traders without trade licences will also be eligible for loans of up to Tk 5 lakh, provided they submit alternative business-related certificates.

Under the new policy, a category called "Informal Entrepreneurs" has been introduced. Entrepreneurs in Bangladesh's informal sector will now be eligible to receive loans of up to Tk 5 lakh under this category. The policy clearly defines who will be considered "informal entrepreneurs."

According to the National Industrial Policy 2022 and the Digital Commerce Operational Guidelines 2021 issued by the Ministry of Commerce, entrepreneurs in the informal industrial sector are identified based on specific criteria.

Individuals who possess a Unique Business Identification (UBID), Digital Business Identification (DBID), and a Personal Retail Account (PRA) as per Bangladesh Bank's regulations, and who operate labour-intensive micro or floating businesses or service-based enterprises, will be recognised as informal or marginal entrepreneurs.

As per the new policy, entrepreneurs in informal sectors engaged in production, services, or trading, with no more than 10 employees (including family members), will be eligible for loans of up to Tk 5 lakh.

There is no turnover requirement for this category of entrepreneurs. However, the total fixed assets of their industrial establishment—excluding land and factory buildings—must be valued at less than Tk 5 lakh.

Under the new policy, medium-scale industrial entrepreneurs will be eligible for loans of up to Tk 100 crore.

This loan facility will be available to labour-intensive industries with 1,000 employees or ready-made garment (RMG) factories with 121 to 300 workers.

In the service sector, medium-scale enterprises with 51 to 120 employees will be able to secure loans of up to Tk 75 crore.

For the manufacturing sector, micro-industries will be eligible for loans of up to Tk 2 crore, while small industries can receive up to Tk 25 crore.

In the trading sector, medium enterprises can get up to Tk 10 crore, whereas small enterprises in the trading and service sectors can avail themselves of loans of up to Tk 8 crore.

Meanwhile, micro-industries in the trading sector will be able to secure loans of up to Tk 75 lakh. Cottage industries will have access to loans of up to Tk 20 lakh.

The previous policy, formulated on September 5, 2019, was intended for a five-year term. As that policy period has expired, the new policy has been introduced, which will remain in effect for the next five years.