Bangladesh Bank has revised the terms of its Tk3,000 crore refinancing scheme designed to develop an agriculture-based special economic centre in the country’s northern region, including changes to lending rates, loan tenures and penalties for irregularities.
Under the revised guidelines, participating banks will receive refinancing from Bangladesh Bank at an interest or profit rate of 3 percent, while the rate charged to customers cannot exceed 7 percent.
For Shariah-based financing, banks must determine the profit rate according to their approved investment policies, but it will also be capped at 7 percent and applied uniformly to customers.
The central bank has also revised the repayment periods under the scheme. Financing for eligible sectors or projects will have a maximum tenure of 18 months, including a grace period of up to three months where applicable.
Banks must repay the refinancing amount, along with interest or profit, to Bangladesh Bank within the same period.
For other specified sectors or projects, the maximum tenure is 36 months, including a possible grace period of three to six months.
Bangladesh Bank has introduced a recovery provision to address misuse of the refinancing facility or charging customers above the permitted 7 percent rate.
If such irregularities are found, the concerned bank will have to pay an additional 2 percent interest or profit on the relevant amount as a one-time recovery.
The participating banks are also asked to promote the concessional financing facility by displaying banners inside and outside their branches and running special campaigns to inform potential borrowers.
The revised provisions were issued through a circular by Bangladesh Bank’s Agricultural Credit Department, replacing some provisions of its earlier circular issued on July 6, 2026.
All other provisions of the previous circular will remain unchanged, and banks have been instructed to implement the revised directions immediately.
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