CMSME Cluster Financing

Key Criteria of CMSME Cluster

  • Products or services should be similar or homogenous along with related products.
  • Enterprises must be production or service units including forward and backward linkage industries.
  • Number of units: 50 or above*.
  • Adjoining geographical location: several villages, wards, unions and industrial estates.
  • Scattered within an area of 5 kilometer radius.

(*Number of enterprises/entrepreneurs is around 50 or above but if any entrepreneur/enterprise belongs to cluster and avail loan/investment then respective enterprise/entrepreneur will be identified as borrower under cluster financing)

Target Clusters for CMSME Financing

High Priority Clusters

Priority Clusters

Other Clusters

i. Agro/ food processing and Agro machinery manufacturing industry

i. Plastic and other synthetic industry

Clusters recognized by:


i. SME Foundation
ii. Other Stake Holders (if any)
iii. Bank Asia-identified clusters.

ii. Readymade garments industries, knitwear, design and decoration

ii. Tourism industry

iii. ICT

iii. Home textile

iv. Leather and Leather goods industries

iv. Renewable energy (solar power)

v. Light engineering

v. Automobile manufacturing and repairing industry

vi. Jute products industry

vi. Handlooms and handicrafts

vii. Energy efficient appliances (LED, CFL bulb manufacturing)/ manufacture of Electronic equipment/ Electronic material development industry

viii. Jewelry Industry

ix. Toy Industry

x. Cosmetics and Toiletries Industries

xi. Agar Industry

xii. Furniture Industry

xiii. Mobile/Computer/ Television servicing


  • Enterprise must be under CMSME sector;
  • Enterprise must be engaged in Manufacturing and Service Sector;
  • Enterprise must be under specific cluster;
  • Entrepreneur/Enterprise will need to be the member of association/union/society (if any) formed under the cluster. Recommendation from association/ trade body is optional for cluster financing;
  • Entrepreneur(s) will get priority during availing of loan/investment if he/she has prior or on-going experience in the same business line/ previous at least 1-month training related to the respective initiative/business from any govt. /private organization. However enterprise’s/entrepreneur’s equity, cash flow etc. will be prioritized during calculation of entrepreneur’s Business experience;
  • Cluster-based Women Entrepreneurs and special deprived/ unbanked entrepreneurs will get priority in availing loan/investment.
  • Eligible entities: Sole Proprietorship Firms, Partnership Firms, Private Limited Companies.

Loan/Investment Limit

  • Both term loan and working capital can be provided as per the loan limit for CMSMEs defined in the SMESPD Circular No-02/2019 of Bangladesh Bank.


    (max. limit in BDT)

    (max. limit in BDT)


    15 Lac



    1 Crore

    25 Lac


    20 Crore

    5 Crore


    75 Crore

    50 Crore

  • A borrower can avail loan(s) from different banks/NBFIs and loan/investment limit will be calculated on the basis of his/her aggregate exposure of loan limit.
  • A borrower’s cumulative loan limit shall not cross the highest ceiling as per the CMSME Master Circular.

Rate of Interest

  • Interest rate will be applicable as per guidelines of Bangladesh Bank/Bank Asia from time to time.
  • Borrower will enjoy lower interest rate if he/she is financed under any specific/pre-finance/re-finance scheme. In such case, the interest rate will be determined according to the relevant scheme.

Tenure of the loan

  • Maximum 5 years (including maximum 6 months grace period on the basis of customer banker relationship).