CMSMEs and agriculture are two vital sectors of Bangladesh’s economy. With strategic support from Bangladesh Bank (BB), these sectors are receiving policy-driven financial inclusion to foster sustainable development.
What is CMSME Financing?
CMSME (Cottage, Micro, Small, and Medium Enterprises) financing refers to the provision of loans to small-scale entrepreneurs for business development, employment generation, and rural empowerment.
As per Bangladesh Bank’s CMSME Guidelines (2025):
- Minimum 15% of total loan disbursement must go to CMSME sector
- Loans up to BDT 10 lac without collateral
- 10% of CMSME loans reserved for women entrepreneurs
- Simplified documentation for micro and cottage industries
- Banks must establish dedicated CMSME desks
Benefits of CMSME Financing:
- Promotes grassroots entrepreneurship
- Generates local employment
- Reduces economic disparity
- Encourages women-led businesses
What is Agricultural Credit?
Agricultural credit refers to loans provided to farmers and agri-entrepreneurs for crop production, livestock, fisheries, and agri-tech initiatives.
According to BB’s Agricultural and Rural Credit Policy and Program:
- Annual credit target set by Bangladesh Bank
- Focus on marginal and small farmers
- Interest rate usually 4% to 8%
- Agent banking and mobile banking used for rural disbursement
- Special refinancing schemes available for banks
Why These Sectors Matter
- CMSMEs contribute 25%+ to GDP
- Agriculture supports 40%+ of the workforce
- Both sectors drive financial inclusion, rural upliftment, and poverty reduction
- Key to achieving SDG goals and Vision 2041
Challenges to Address
- Lack of financial literacy among rural borrowers
- Limited access to formal banking
- Documentation and credit history barriers
- Delays in disbursement and monitoring
Recent Innovations by BB
- Digital Credit Scoring System (DCSS)
- Credit disbursement through mobile apps and MFS
- Monitoring via satellite and agri-data analytics
- Women-led agri startups prioritized
Conclusion
CMSME financing and agricultural credit, when guided by strong regulatory frameworks like those of Bangladesh Bank, can become game-changers for inclusive, equitable economic growth. Proper implementation, awareness, and digital innovation can unlock the full potential of these sectors.
