Bangladesh Bank will give loans to environment-friendly industries

Bangladesh Bank has set up a special fund of Tk 4.00 billion to provide loans at low interest and easy terms to the environment-friendly industrial sector. Entrepreneurs will be given quick loans from this fund.

The maximum interest rate for loans at the customer level will be 5 percent. However, the solar irrigation pump sector, the government’s priority sector, will be given loans at 3 percent interest.

Apart from commercial banks, financial institutions can also provide loans to participating customers from this fund.

In this regard, Bangladesh Bank issued a circular on September 10, 2023, and sent it to the chief executives of commercial banks and financial institutions. The circular said that this instruction will be effective immediately.

Bangladesh Bank will provide this money from its funds to encourage the environment-friendly industrial sector and give it to eco-friendly enterprises, industries, solar irrigation pumps, and other industries that will not pollute the environment.

According to the circular, only those banks and financial institutions whose open credit ratio is less than 10 percent will get financing from this fund.

If there are more than 10 percent defaulted loans, they will not get financing from this fund. However, even if the non-performing loans of government banks are more than 10 percent, a special discount has been given in their case. All government banks will get financing facilities from this fund.

 Commercial Banks will disburse these loans from this fund for 3 to 10 years, which will be reusable from Bangladesh Bank.

However, the loan will be given for 20 years in the green housing sector. A grace period of one year will be given after the loan is sanctioned. No defaulting customer will get a refinance facility.