Do you think that the credit delivery under SME scheme is given due weight by bank and financial institution from the view point of national interest

Bank and financial institution finance in sme sector from its own fund. For this Bank and financial institution act as a main source of sme fund. Also Bangladesh bank has given some finance under refinance program . After perspective of world economic downward to increase the growth of GDP it is needed to involve people from all sector of the country. For this reason priority

Has given to increase the less important or neglected sector of the country such as

agri and micro-medium enterprise. For more development in sme sector a division named ―sme & special programed division‘‘ has opened in Bangladesh bank which only determine the rules and regulation for sme development. This division helps in monitoring, provide fund, create entrepreneur and act as help assistant at development program.

According to Bangladesh bank sme rules Bank and financial institution have taken the following program-

*from 2000 considering sme sector as agenda for economic development target

of sme loan disbursement has determined for Bank and financial institution. according to determined target sme loan is disbursing in micro, medium and women entrepreneur.

* Bank and financial institution have divided their target on area basis as branch wise, district wise and sector wise.

*every Bank and financial institution follow feasy rules and regulations, take few time during approval , documentation and disbursement of loan considering the favour of micro and medium entrepreneur.

*every bank has opened sme branch in different locality to expand sme sector.

*different financial institution giving loan amount of 50000/- to 5000000/-to micro industry/entrepreneur.

*to increase the participation of women in the economic development of country sme loan is giving them without any security.

* every Bank and financial institution has opened ―women entrepreneur

dedicated desk‘‘ and appoint sufficient manpower according to Bangladesh bank

rules and circular.

* Bank and financial institution has giving cluster loan under employment creation and poverty elimination program ordered by Bangladesh bank.

*bank giving loan to solar power, waste management plant and brick field at lower interest rate under BB refinance program.

*BB has implemented green banking rules for investment in environmentally viable sector.

*arranging training for new entrepreneur at sme sector.

To expand sme loan government and financial institution need to take more practical initiative except the above discussed sector and then the flow of economic development of country will continue.

List out the booster sectors financed under SME scheme

 Name of booster sector financed under SME program are cited below-

 a. Industrial  sector-

 i.    electronics and electric materials. 

ii.    Plastic and other synthetic

iii.    Furniture manufacture

iv.    Small parts of car/autorickshaw, aluminum fittings of for home chore or office usage.

v.    Jewelry, photography or printing press.

vi.    Production of herbal products etc.

b. Service sector

 

i.    health service and diagnostic

ii.    herbal treatment & beauty parlor iii.    medicine & cosmetics

iv.    amusement park, tourist spot, tourist cottage, resort, residential hotel etc.

c. business sector

I.     wholesale or retail shop, glossary shop, departmental store, hardware, cosmetics, restaurant, stationary, medicine shop, garments manufacturing shop, furniture shop, etc.

II.    working capital financing for market and marketing of product and services produced from industry or enterprise.

a) Distinguish between SME credit and agricultural credit. b) Which of the two, according to your opinion, effectively influencing the economic development of the country including higher GDP growth