The lion's share of a loan introduced for the development of the Small and Medium Entrepreneurs (SME) are being channelised in other sectors, according to a report by the Bangladesh Bank. Banks and financial institutions had disbursed around Tk 418.49 billion in the SME sector in the first six months of the current year. It is, however, 56.41 percent of loan disbursement target. Of the disbursed amount, Tk 277.7 billion went into the business sub-sector, accounting for 66.36 percent of the total amount. The sum was Tk 201.54 billion, or 62.48 percent of the total loan disbursed, in the same period the previous year. According to the report, the manufacturing sub-sector received Tk 118.69 billion, or 28.36 percent, of this year's loan amount. It received 32.44 percent of loan in the previous year. The service sub-sector got the least loan this year, a meagre 5.28 percent or Tk 22.1 billion. This year, the targeted SME loan disbursement by the banks and financial institutions has been fixed at Tk 741.87 billion. Central bank officials hope to beat the target by the end of the year, as several banks have recently started functioning. Last year, the disbursed loan in the SME sector was around 18 percent higher than the target. Banks and financial institutions loaned out Tk 697.53 billion against a Tk 590.13 billion goal. However, the report says, this year female entrepreneurs got around Tk 14.93 billion of the SME loan, while small entrepreneurs got only Tk 170.86 billion. General Manager of Bangladesh Bank's SME and Special Programmes Division, Sukomol Sinha Chowdhury, said banks face greater risks in trade financing. He said industry entrepreneurs were also getting loans, though in a smaller sums compared to last year. "I hope the industry sector will get expected loans by the end of December. Bangladesh Bank is encouraging banks to provide cluster-based loans," he told bdnews24.com. Chowdhury said although the financing in trades was big, they were expanding their economic activities. "It is having a positive impact on Bangladesh's overall economy," he said. He said the central bank was taking various steps to ensure real entrepreneurs got the loans. Bangladesh Bank's SME Division was also monitoring the quality of loan at the grassroots. "We are also scrutinising whether the real entrepreneurs were getting loans," Chowdhury said. News:The New Nation Bangladesh/30-Aug-2013