Bangladesh Bank Caps North Bengal Agribusiness Loans at 7pc

In a significant policy update announced on August 30, 2026, Bangladesh Bank has taken decisive measures to boost agricultural development and economic growth in the northern region of the country. The central bank has officially reduced the interest and profit rates for loans disbursed under a specially established Tk 3,000 crore refinancing fund. This financial mechanism was originally formed with the core objective of building a robust agricultural-based special economic center across the northern districts, specifically encompassing the Rajshahi and Rangpur divisions.

Under the newly revised guidelines issued by the monetary authority, participating commercial banks and financial institutions will be able to access the refinancing facility directly from Bangladesh Bank at an attractive interest rate of just 3 percent. This provision is designed to ensure that financial intermediaries have sufficient liquidity and incentive to channel funds efficiently into the targeted economic zones without facing prohibitive borrowing costs themselves.

Passing on these financial advantages to the ultimate borrowers, the central bank has strictly capped the maximum interest or profit rate for loans at the customer level to 7 percent. This rate ceiling is intended to make borrowing significantly more affordable for farmers, entrepreneurs, and businesses operating within the Rajshahi and রংপুর (Rangpur) regions, thereby stimulating local production and commercial activities in these historically agriculture-dependent areas.

To ensure proper financial discipline and tailored support, the newly structured directive outlines specific repayment timeframes based on the nature of the economic activities. For financing directed specifically toward the agricultural production sector, the maximum tenure for the loan or investment has been set at 18 months. Meanwhile, for all other eligible sectors falling under the scope of this comprehensive refinancing scheme, the maximum loan repayment period has been extended up to 36 months, equivalent to three full years.

This targeted intervention by Bangladesh Bank represents a structured effort to leverage the agrarian potential of the Rajshahi and Rangpur divisions. By combining a substantial Tk 3,000 crore financial backing with favorable borrowing terms—such as the 3 percent central bank refinancing rate and the 7 percent customer rate ceiling—the initiative aims to lay a sustainable foundation for an agricultural-based special economic hub in northern Bangladesh.