Bangladesh Bank has issued a comprehensive, unified policy revamping its Tk 1,500 crore refinance scheme aimed at bolstering financial inclusion for marginal farmers, low-income professionals, small business owners, students, and remittance-recipient families.
The revamped guidelines, issued by the central bank's Financial Inclusion Department (FID) on November 12, 2026, replace all previous circulars and letters concerning the fund, including FID Circular-01/2021. The scheme will operate on a revolving basis for the next five years, backed by Bangladesh Bank's own funds.
Target Beneficiaries: 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 will receive priority.
Women Empowerment: At least 25 percent of the total loans under this scheme must be disbursed to female borrowers and entrepreneurs.
Farmer Smart Cards: Marginal and landless farmers holding "Farmer Smart Cards" under the Department of Agricultural Extension will receive priority in loan acquisition, though cardless farmers will not be excluded.
Student Banking: Under the student banking component, banks can extend loans with parental repayment guarantees for vocational or IT training, income-generating activities for students post-18, and higher education expenses (such as medical, engineering, and MBA programs) for underprivileged students up to the age of 25.
Individual and Group Caps: Commercial banks can provide individual loans up to Tk 10 lakh. For group-based loans (2–5 members), the limit is set at up to Tk 8 lakh per group (Tk 2 lakh per member), capped at Tk 40 lakh total.
Interest Rates: 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.
Collateral: 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 permissible. Loans exceeding Tk 5 lakh may require reasonable collateral based on banker-customer relations.
Loans under the scheme carry a maximum grace period of 6 months, with a total repayment tenor of up to 5 years (60 months). Banks can disburse funds through their branches, sub-branches, agent banking, mobile financial services (MFS), and online platforms without imposing any extra processing fees beyond Bangladesh Bank's Schedule of Charges.
The central bank expects that this streamlined framework will significantly expand credit flow to underprivileged and productive sectors, driving grassroots economic growth and employment generation.