Dhaka:Bangladesh Bank has issued a new comprehensive policy revamping its Tk 1,500 crore refinance scheme aimed at enhancing financial inclusion for various marginalized groups in the country.
According to United News of Bangladesh, the revamped guidelines, released by the central bank’s Financial Inclusion Department on November 12, 2026, replace all former circulars and communications related to the fund, including FID Circular-01/2021. The scheme will function on a revolving basis over the next five years, utilizing Bangladesh Bank's funds.
The primary beneficiaries of the scheme include marginal and landless farmers, micro and small entrepreneurs, traditional professionals, small traders, low-income earners in coastal and haor areas, ethnic minorities, and differently-abled individuals. Additionally, there is a focus on women empowerment, with a requirement that at least 25 percent of the total loans be disbursed to female borrowers and entrepreneurs.
Marginal and landless farmers holding "Farmer Smart Cards" will receive priority in accessing loans, although non-cardholders will not be excluded. For students, the scheme allows banks to extend loans with parental repayment guarantees for vocational and IT training, as well as for higher education expenses for underprivileged students up to 25 years of age.
Under the scheme, commercial banks can extend individual loans up to Tk 10 lakh, while group-based loans can reach up to Tk 8 lakh per group, with a total cap of Tk 40 lakh. Banks will obtain refinancing from Bangladesh Bank at a 1.0 percent annual rate, with end-borrowers facing a maximum interest rate of 7.0 percent.
Loans up to Tk 5 lakh do not require security collateral, though personal guarantees are permissible, while higher amounts may necessitate collateral based on banker-customer relations. The loans have a maximum grace period of six months and a total repayment term of up to five years.
Disbursement can occur through various channels including bank branches, sub-branches, agent banking, mobile financial services, and online platforms, without extra fees beyond Bangladesh Bank's Schedule of Charges. The central bank anticipates that this streamlined approach will significantly boost credit flow to underprivileged sectors, fostering economic growth and job creation at the grassroots level.