Women entrepreneurs have raised concerns over the difficulties they face in securing loans from banks and financial institutions. They argue that stringent requirements such as collateral, guarantees, and financial records make it challenging for small and medium-sized enterprises (SMEs), particularly those led by women, to access much-needed capital. Stakeholders have urged financial institutions to introduce hassle-free and affordable loan schemes tailored for women entrepreneurs. They emphasize that easing loan conditions will not only empower women but also contribute to economic growth and job creation.
“Most women entrepreneurs lack collateral and struggle with strict banking requirements, making it nearly impossible to secure funds for their businesses,” said women entrepreneurs at a recent function. “If banks provide more flexible financing options, more women can enter and thrive in the business world.”
They suggest that alternative financing models, such as credit guarantee schemes and microfinance programs, could help bridge the gap. They also call on policymakers to implement targeted financial policies that support women-led businesses. With growing recognition of the role women play in economic development, stakeholders stress the need for immediate action to remove financial barriers and foster a more inclusive entrepreneurial ecosystem.
Bangladesh Bank is reviewing the factors behind the slow growth of loans to small and medium enterprises (SMEs) and working to integrate them more effectively into the financial system. Governor Ahsan H. Mansur made the announcement while speaking as the chief guest at a workshop on “Artificial Intelligence-based Credit Rating and Microfinance for Women Entrepreneurs” in Gulshan on Wednesday. The event was jointly organized by the SME Foundation and the Asia Foundation.
Governor Mansur emphasized the importance of leveraging technology to improve loan accessibility for SMEs. “The evaluation of data in Bangladesh is very low, and that is why we are lagging behind. To overcome this situation, we have to rely on technology. Especially by using artificial intelligence (AI), we have a good opportunity to move forward. We may soon move in that direction,” he stated.
He also highlighted the low participation of women in the institutional banking structure despite their significant presence in microfinance institutions. Citing socio-economic, religious, and educational barriers as contributing factors, Mansur suggested that making women’s participation mandatory in agent banking could be a viable solution. “If this is done, it will be possible to take the institutional banking system completely into people’s homes,” he added.
AI-Based Credit Scoring for Collateral-Free Loans: The workshop’s speakers emphasized the potential of AI-based credit scoring to provide collateral-free loans, especially benefiting women entrepreneurs. Deputy Managing Director of SME Foundation Md. Nazim Hossain Sattar noted that since its inception, the SME Foundation has disbursed approximately Tk 1,000 crore in loans at easy terms and low interest rates to around 10,000 SMEs, with 25 percent of recipients being women.
Panelists included Farzana Khan, General Manager of SME Foundation; Syed Abdul Momen, Deputy Managing Director of BRAC Bank; Naushad Mostafa, Director of Bangladesh Bank; Dhabal Cheda, Senior Product Manager of Visa; and Munir Duri, CEO of Kifia Financial Technology.
The event reiterated the challenges SMEs, particularly women-led enterprises, face in securing loans due to stringent collateral and financial record requirements. By integrating AI-based credit evaluations, banks and financial institutions could offer more inclusive financial opportunities and drive sustainable economic growth in Bangladesh.
