Reconsider conditions for bank loans to small businesses: SME Foundation

The government should reconsider its decision to make it mandatory for small and medium businesses to submit proof of income tax return in case of loans of Tk 5 lakh or more, the SME Foundation said today.

Rather, the government can make it a must for loans up to Tk 30 lakh now and then decrease the limit gradually to Tk 5 lakh in the next 3-4 years, it said.

The state agency said the small and medium enterprises do not get access to bank loans because of its complex and lengthy process, it said.

Making it mandatory for small loans like Tk 5 lakh would squeeze the opportunity for the Cottage, Micro, Small and Medium Enterprises entrepreneurs, the SME Foundation said.

The agency made the call and sent a letter signed by its managing director, Mafizur Rahman, to the industries ministry today.