Expatriates will get loans from the proposed Probashi Kalyan Bank at a maximum of 10 percent interest rate.
A draft bill on the bank is expected to be placed at the cabinet meeting today, officials said. The finance ministry sent the draft with feedback from Bangladesh Bank to the Cabinet Division last week.
According to the draft law, those who go abroad for employment will be given loans with or without collateral from the bank to run small enterprises.
A senior official of the finance ministry said the rate of interest might be close to the rate charged by Karmasangsthan Bank. Karmasangsthan Bank officials said the highest rate of interest at the bank is 10 percent.
According to a study by the finance ministry, remittance worth about Tk 74,000 crore flowed into Bangladesh in 2009, of which, 66 percent came from expatriates from low-income families.
The law was formulated on the basis of recommendations made by a committee led by the expatriate welfare and overseas employment ministry. The secretary was made ex-officio head of the committee.
According to the draft law, the proposed bank will help transfer money home easily and at a low cost and encourage investment in productive sectors.
The bank to be headquartered in Dhaka may open branches at home and abroad.
According to the draft law, its authorised capital will be Tk 500 crore and paid-up capital will be Tk 100 crore.
BB statistics show 7.31 lakh people went abroad a year on average during the last three years.