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under the central bank refinance scheme has been disbursed since May
2007. The fiasco has surprised Bangladesh Bank ( BB) officials, who
had identified the low accessibility of bank credit as a major
problem for the women intending to start business, or its expansion.
"It is a matter of regret that the fund is not being used properly,"
said Nazrul Huda, BB's deputy governor. However, another BB official
contradicted it, pointing out a rise in fund disbursement this year
compared to such disbursement in previous two years. In May 2007 , a
Tk 15 crore BB refinance scheme was introduced, which was raised to
Tk 105 crore later. Under the scheme, banks and non-bank financial
institutions (NBFIs) are eligible to avail of the facility at 5
percent interest and lend to entrepreneurs at 10 percent interest.
As on September 30 , less than Tk 22 crore has been disbursed under
the scheme. Several women entrepreneurs say they have no clear idea
of such BB fund. They also spell out that they feel shaky about bank
loans. Selima Ahmed, president of Bangladesh Women Chamber of
Commerce, blamed banks' lax attitude and profit mongering and poor
capacity of women entrepreneurs for low disbursement of loan from the
fund. "Women entrepreneurs outside Dhaka need finance badly. But bank
officials there know little about the fund," claimed Selima, who has
a decade-long working experience in this arena. The banks concerned
should come forward to get their branches outside the capital well-
informed of the BB fund for women entrepreneurs, she added. "Banks
also prefer lending from their own scheme to utilising the BB fund,"
she said. Nahida Sharmin, a successful woman entrepreneur, said she
takes the least interest in bank borrowing. "Several banks offered me
Tk 10 lakh loan at 10 percent interest rate after I won a major SME
award earlier this year. But I refused to take the loan fearing that
I won't be able to repay the instalment," said Sharmin, owner of
SHAILPIK, a fashion and design house located in Dhanmondi. Now
Sharmin, a fine arts graduate, thinks of taking Tk 3 lakh bank loans
for business expansion. Work orders from a foreign country have
prompted her to go for bank loan, she said. Still, hidden costs and
charges a bank imposes during loan disbursement frighten her.
