Despite suffering massively on account of the fallouts of the coronavirus pandemic, small businesses in Bangladesh have managed to pay off 77.68 per cent loans of the target even if with the surge in credit growth in the CMSME sector (Cottage, Micro, Small & Medium Enterprises), the amount of loan recovery also increased in 2021 while the loan recovery in the sector was 56.43 per cent in 2017, 70.11per cent in 2018 and 72.13per cent in 2019.
Media reports maintained this adding citing the stakeholders, according to whom, loan recovery in the CMSME sector was satisfactory in 2020 as the pandemic hit Bangladesh in March of that year and it took three more months to affect the businesses while in 2021, traders had to deal with the previous year’s pandemic fallouts and despite that they managed to pay a little less in percentage, but in terms of quantity, it was better than expected.
Meanwhile, speaking to the media, Managing Director and CEO of Mutual Trust Bank Limited, Syed Mahbubur Rahman, observed that the loan recovery rate in CMSME sector was comparatively better than that of large loans in Bangladesh, while adding the customers of this sector take short-term loans and also try to refunds the same on due time.
