Bangladesh Bank has revised its Tk 15 billion refinance program to expand credit availability for marginalized communities, including farmers, low-income workers, and students. The updated framework, issued by the central bank’s Financial Inclusion Department on November 12, 2026, supersedes all previous instructions and will function continuously for five years.
The revised program targets marginal and landless farmers, micro-entrepreneurs, traditional artisans such as fishermen and tailors, small traders, and vulnerable populations in coastal and haor areas. At least 25 percent of the total loans under this scheme must be disbursed to female borrowers and entrepreneurs. Those holding Farmer Smart Cards from the Department of Agricultural Extension receive priority, though applicants without cards remain eligible.
Students under 25 can obtain loans for vocational training, information technology courses, or higher education, provided they secure parental guarantees. Banks may lend up to Tk 10 lakh per individual or Tk 8 lakh per group, with an overall cap of Tk 40 lakh across all group members. Participating banks will secure refinancing from Bangladesh Bank at an annual rate of 1.0 percent, while the maximum interest rate for end-borrowers is capped at 7.0 percent on a declining balance basis.
Loans of Tk 5 lakh or less do not require collateral, though banks may accept guarantees from two co-signers. Larger loans may demand security based on the borrower’s existing relationships with the bank. Repayment terms include a six-month grace period and a maximum five-year term. Funds can be distributed through bank branches, mobile banking, or online platforms without additional charges.
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