Credit flow to women entrepreneurs has become low, due to non-cooperation of bank officials. A recent report, conducted by the SME & Special Programmes Department of Bangladesh Bank (BB), has revealed that a number of bank officials are reluctant to receive credit proposals from women entrepreneurs.

According to central bank guidelines, based on individual guarantee, Banks are directed to approve loans up to Tk. 25 lakh, for women entrepreneurs. With collateral, a women entrepreneur can obtain a maximum of Tk. 50 lakh credit for small enterprises. But, the report stated that banks usually approve such amounts in rare cases.

“In reality, women entrepreneurs are not getting proper support from a section of bank officials, before and after the disbursement of loans,” the report stated.   During inspection, BB inspectors were told that Banks are not getting enough proposals from women entrepreneurs.

The report has identified lack of communication and coordination between banks and entrepreneurial women as the real problem.Statistics provided by the SME and Special Service Department showed that Bank loans to women entrepreneurs, under the SME category, has increased by only 1 per cent in the first quarter of 2012, compared to the previous year.From January to March, all banks have disbursed Tk. 646.59 crore in loans, among 4,481 women entrepreneurs, across the country.

The amount is 5 per cent of the total SME loans disbursed by Banks during the same period. The target for SME loan disbursement in 2012 was set at Tk. 59,012 crore, of which, 15 per cent had been reserved for women-led enterprises.In 2011, 16,996 women entrepreneurs had received Tk. 2048.5 crore as loans, which was 4 per cent of the total amount disbursed under the SME category by banks. In 2010, about 13,831 women entrepreneurs had obtained Tk. 1804.92 crore in loans.

The BB report mentioned that the central Bank has initiated new approaches to increase disbursement of loans to women entrepreneurs and issued directives to Banks in this connection. New approaches include provisions for making women entrepreneurs aware about relevant documents,  processing a loan proposal through organising seminars and workshops, one-to-one meetings or group discussions at Bank branches and proper counseling for sustainable growth of business.

Sukumol Sinha Chowdhury, general manager of the SME and Special Service Department, said the initiatives are aimed at building linkage between women entrepreneurs and Bank officials.“Banks can contribute to the national goal of women empowerment, by creating more space for women entrepreneurs. We’re trying to achieve the goal. I hope that banks would come forward to resolve the financial needs of women entrepreneurs,” Chowdhury added.

At present, the central Bank focuses on promoting Hamala (Camel’s Sit Cover) producers in Rangamati, and Monipuri Weavers in Sylhet. The BB official said that all scheduled and foreign banks were asked by the central bank to provide financial support to women entrepreneurs.With the help of some banks, the central Bank has recently completed seminars in Rangamati and Sylhet to literate women entrepreneurs about SME financing.

The BB official said the central Bank has introduced ‘dedicated help desk’ for women entrepreneurs to lodge complaint regarding financial services by Banks.

The Independent/ Bangladesh/ 26-May-2012