Bangladesh Bank has launched a Tk 20,000 crore special scheme to help restart closed industrial and service-sector enterprises, with the customer-level lending rate capped at 7%.

Under the “Pre-financing Scheme for Supporting Closed Industries and Service Sectors,” borrowers will receive a six-month grace period, during which no interest will be charged.

The central bank issued a circular on Thursday (September 17), outlining the scheme and directing banks to provide financing to eligible closed businesses using pre-financing from Bangladesh Bank.

Under the scheme, banks will pay Bangladesh Bank interest at 4% on the pre-financing. However, no interest payment will be required during the first six months. After the grace period, banks will pay the interest to Bangladesh Bank on a quarterly basis, including outstanding interest from the first two quarters.

For end borrowers, the interest rate on loans under the scheme will be capped at 7%. Borrowers will also receive a six-month grace period, with interest collection beginning after the period ends. Interest accrued during the first two quarters will subsequently be collected.

Banks can apply for pre-financing at any time during the three-year tenure of the scheme, subject to fund availability.

Bangladesh Bank has also instructed participating banks to ensure that the funds are used for their designated purposes and to closely monitor loan utilisation and recovery.

The scheme has been introduced under Section 45 of the Bank Company Act, 1991, and the instructions are effective immediately.