Bangladesh Bank Issues Revamped Tk 1,500 Crore Refinance Scheme With 7% Borrower Cap

Bangladesh Bank issued a revamped Tk 1,500 crore refinance scheme on November 12, 2026, to widen credit access for marginal farmers, low-income professionals, small businesses, students and remittance-recipient families. United News Bangladesh reported that the central bank's Financial Inclusion Department issued the unified guidelines.

Bangladesh Bank is the country's central bank and monetary authority, headquartered in Dhaka, and regulates all 39 scheduled banks and mobile financial services providers, according to company records.

How the Tk 1,500 Crore Fund Works

The new guidelines replace all previous circulars and letters on the fund, including FID Circular-01/2021. The scheme runs on a revolving basis for five years and is backed by Bangladesh Bank's own funds.

Priority borrowers include marginal and landless farmers, micro and small entrepreneurs, traditional professionals such as fishermen, cobblers, goldsmiths, barbers, potters, blacksmiths and tailors, small traders, low-income earners in coastal and haor areas, ethnic minorities and differently-abled individuals. At least 25 percent of total loans must go to female borrowers and entrepreneurs.

Commercial banks can lend up to Tk 10 lakh to an individual. Group loans of two to five members are capped at Tk 8 lakh per group, or Tk 2 lakh per member, with a Tk 40 lakh ceiling in total. Banks secure refinancing from Bangladesh Bank at 1.0 percent a year and may charge end-borrowers no more than 7.0 percent on a declining balance basis.

No security collateral can be demanded for loans up to Tk 5 lakh, though personal guarantees from up to two individuals alongside the borrower are allowed. Loans above Tk 5 lakh may require reasonable collateral based on banker-customer relations. The scheme carries a maximum grace period of six months and a repayment tenor of up to five years, or 60 months.

Farmers holding Farmer Smart Cards from the Department of Agricultural Extension get priority, though cardless farmers are not excluded. Under the student banking component, banks can lend against parental repayment guarantees for vocational or IT training, income-generating activities for students over 18, and higher education for underprivileged students up to age 25. Banks can disburse through branches, sub-branches, agent banking, mobile financial services and online platforms without extra processing fees beyond Bangladesh Bank's Schedule of Charges.

Bangladesh Bank's Recent Inclusion Moves

Bangladesh Bank began a three-day final selection process on 8 November to identify young entrepreneurs in Manikganj for financing under its Udyog programme, using interviews and assessments with evaluators from business and industry, The Business Standard reported.

On November 1, the central bank launched P2P Bangla QR payments, allowing transfers via QR codes across banks, mobile financial services and payment service providers, Dhakatribune reported. Daily transactions rose from about 100,000 in June to 350,000 by late September, valued at Tk143.54 crore.

In July 2026, Bangladesh Bank made the unified Bangla QR payment system mandatory nationwide, consolidating incompatible bank and mobile financial services QR platforms into a single interoperable standard, according to akta.pro company records.

The central bank expects the streamlined framework to expand credit flow to underprivileged and productive sectors and to support grassroots economic growth and employment generation.