BRPD-1 Circular No. 13: Pre-Finance Scheme to Support the Closed Industry and Service Sectors

Bangladesh Bank
Head Office
Motijheel, Dhaka-1000
Bangladesh.
Ref No.: BPD-1
Banking Regulation and Policy Department-1
June 04, 2026
BRPD-1 Circular No. 13 Date: ------------------ 21 Jyestha 1433 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Regarding the formation of the "Closed Industry and Service Sector Support Pre-Finance Scheme" The private sector is one of the driving forces behind Bangladesh's economic growth, institution creation, and export promotion. To accelerate the sluggish economy, it is essential to restart closed industry and service institutions through private investment-driven economic planning to create direct and indirect employment in the country. To this end, a pre-finance scheme of 20,000 (Twenty Thousand) Crore Taka has been established to provide working capital assistance to large industry and service sector institutions that are fully closed but capable of restarting, particularly in the export-oriented sector, as well as those that are partially operational but capable of full production. The following guidelines are prescribed for the said scheme:

2. Name of the Scheme: The name of this scheme shall be "Closed Industry and Service Sector Support Pre-Finance Scheme" (Closed Industry and Service Sector Support Pre-Finance Scheme).

3. Amount and Source of the Scheme: 20,000 (Twenty Thousand) Crore Taka; Surplus liquidity of scheduled banks.

4. Objective of the Scheme: To provide working capital to partially or fully closed or operational institutions in the large industry and service sector, particularly export-oriented, which are unable to produce or provide services due to a lack of necessary working capital, Bangladesh Bank will provide loans to various scheduled banks at low interest rates as per their demand. The received funds will be provided by the banks as working capital to eligible borrowers after verifying the authenticity of the loan recipients.

5. Participating Banks: All scheduled banks operating in Bangladesh are eligible to avail loan facilities from the said pre-finance fund. Banks interested in availing pre-finance must sign a Participation Agreement with the Banking Regulation and Policy Department-3 of Bangladesh Bank.

6. Scheme Management: The said scheme will be managed by the Banking Regulation and Policy Department-3 of the Head Office of Bangladesh Bank. The loan borrowing by scheduled banks from the scheme and the corresponding repayment process must be conducted by the bank's Head Office/Principal Office.

7. Tenure of the Scheme: The tenure of this scheme is 3 (three) years.

8. Eligibility of Customers for Loan:
   a) Institutions in the large industry sector defined under the National Industrial Policy, which are partially closed but capable of production to a certain extent, or fully closed but having machinery/equipment capable of partial or full production, are eligible for loan facilities under this scheme.

   Additionally, institutions that are operational but unable to produce due to a lack of necessary working capital are also included under this scheme; b) Institutions in the service sector defined under the National Industrial Policy, which are partially/fully closed or operational but unable to provide services due to a lack of necessary working capital, are eligible for loan facilities under this scheme; c) Export-oriented and hidden exporter institutions must be given priority in loan provision. Furthermore, priority must be given to institutions that acquire (buy) or operate through lease agreements other closed institutions with technical expertise, infrastructure, and business channels to restart operations under the working capital facility of the said scheme; d) Before providing loans under this scheme, the bank must analyze the reasons why the concerned institution is partially/fully closed or operational but unable to produce, and assess production capacity and working capital requirements. Loans under the said scheme can be provided for working capital facilities after ensuring that the bank has identified and resolved reasons such as management failure, marketing failure, lack of utility support, use of obsolete technology, etc., preventing the institution from closing or producing. Additionally, the bank must verify the customer's potential loan repayment capacity. For this verification, the bank may engage any specialist person/institution as needed. A detailed report must be prepared and submitted along with the loan proposal; e) The issue of production/service capacity in the above-mentioned sectors must be supported by a certificate from the relevant representative trade organization (FICCI, BGMEA, BKMEA, etc.) (signed by the President and Secretary of the organization). However, if an institution does not have such a certificate or is not on the list of any recognized organization, the bank may verify this matter on its own; f) Loans shall not be provided under this scheme to customers who are currently receiving loan facilities from any other re-finance/pre-finance or similar scheme/fund of Bangladesh Bank as working capital, without proper investigation by the bank; g) Borrowers identified as NPA in CIB are not eligible for loans under the said scheme; h) The bank must ensure that customers seeking loans under the said scheme have not previously engaged in fraud, forgery, fund diversion, or misuse of loan funds.

9. Use of Loan:
   a) Loans may be provided under this scheme for purposes such as payment of workers'/employees' salaries, electricity, gas, and utility bills, procurement of raw materials for production, implementation of export orders, various production expenses, etc., for institutions considered eligible for loan receipt; b) Scheduled banks may provide a maximum amount equivalent to 4 (four) months' salary/benefits for workers'/employees' salaries/benefits from the approved loan under this scheme for the customer; c) In the case of payment of workers'/employees' salaries/benefits, scheduled banks shall directly provide funds to the workers'/employees' bank accounts (including savings accounts). No cash transactions are allowed, and transactions shall not be made in any way other than workers'/employees' bank accounts (including savings accounts). In this regard, banks must mandatorily collect and verify the National Identity Card (NID) of each worker/employee. The determination of monthly requirements for salary/benefits must be verified by the bank, and necessary undertakings must be obtained from the borrower regarding the payment of salary/benefits. If no workers'/employees' bank account or savings account exists, the concerned applying institution must ensure the opening of bank accounts or savings accounts for all workers/employees on its own initiative. However, if any worker/employee wishes to open a bank account, scheduled banks shall open accounts based on the NID of the worker/employee upon the request of the concerned institution, without requiring any minimum deposit. No charges shall be imposed by the bank for opening such accounts;

   d) The borrower must take the loan under this scheme from the bank from which they are taking the project loan, and transactions of loans/investments provided under this scheme must be conducted through the customer's Project Account or Jababha Account (however it may be named). In this regard, regarding the mandatory opening of a project income account at the concerned bank in the case of project loans, the instructions issued in BRPD Circular No. 01, dated: January 18, 2024, must be followed appropriately; e) Existing loan accounts cannot be consolidated/paid off using loans taken under this scheme; f) To ensure the proper use of loans, the bank may deploy a representative of the concerned bank or any specialist person as needed to monitor the operations of the institution for which working capital is provided. Written consent of the borrower institution must be obtained in this regard prior to loan borrowing under the said fund.

10. Loan Limit and Tenure:
    a) The eligibility limit for loans for working capital for the borrower shall be determined within the framework of the existing guidelines of the lending bank. In this regard, within 30 days of the issuance of these guidelines, the bank must select institutions eligible for initial loan receipt under the scheme and send the demand for working capital to the scheme managing department. Subsequently, the department must distribute loans within the determined limit for the bank; b) To ensure the benefit of all eligible institutions from the said scheme, the outstanding amount of the principal loan distributed under this scheme to any single institution or group shall not exceed 200 (Two Hundred) Crore Taka at any fixed time (Fixed Time). The definition provided in BRPD Circular No. 01 dated: January 16, 2022, shall apply in determining the group. In this regard, a declaration must be obtained from customers who have not taken more than 200 Crore in principal loans to any single institution or group; c) Loans provided under this scheme shall be considered as current loans. The tenure of each loan shall be a maximum of 1 (one) year. However, if the business transactions of the borrowing institution are satisfactory, Bangladesh Bank may be applied to for the renewal of the said facility for existing borrowers, subject to the availability of funds in the scheme. However, banks may also renew the said loans on their own authority based on the bank-customer relationship under their normal banking operations.

11. Bank Interest Rate: Banks must pay interest to Bangladesh Bank at a rate of 4% against the pre-finance scheme availed, which shall be levied on a quarterly basis (based on March, June, September, and December). In this regard, although interest is levied on a quarterly basis, interest payment must start from the first two quarters of loan provision, i.e., after six months.

12. Customer Interest Rate and Other Charges:
    a) The customer interest rate under the scheme shall be a maximum of 7%. To provide a 06-month grace period under the said package, although interest is levied on a quarterly basis, interest collection must start from the first two quarters of loan provision, i.e., after six months; b) No other type of charge or fee shall be collected from the customer except the charges/fees mentioned in the existing guidelines regarding the Schedule of Charges issued by Bangladesh Bank.

13. Application Procedure for Pre-Finance:
    a) The concerned bank must apply for pre-finance to the Director, Banking Regulation and Policy Department-3, Bangladesh Bank, Head Office, in the prescribed format (Annex-A) along with necessary information and documents before distributing customer loans for loan approval, within the framework of the management committee's approval process. However, if the application for pre-finance is delayed due to any reason within the next week, the application may be submitted within an additional 15 (fifteen) days mentioning the appropriate reason; b) The following documents/information must be submitted with the application:

    1. Loan approval letter (including copy of management committee decision and committee memo);
    2. Latest CIB report of the concerned customer;
    3. Report mentioned in Clause 8(d);
    4. Certificate from the relevant representative trade organization (FICCI, BGMEA, BKMEA, etc.) (if available);
    5. Declaration obtained from the customer that no principal loan exceeding 200 Crore has been taken to any single institution or group;
    6. Letter of Undertaking (DP Note) provided by the bank regarding the repayment of the amount applied for pre-finance within the prescribed time; and
    7. Any other documents required by Bangladesh Bank from time to time.
       c) Pre-finance facilities will be provided after verification of necessary information/documents by Bangladesh Bank. However, if Bangladesh Bank does not consider the loan eligible for pre-finance at its discretion, the bank may manage the distributed loans under the bank-customer relationship within its normal banking operations; d) The pre-finance application form and its annexures must be submitted to Bangladesh Bank with the signature of the Managing Director/Chief Executive Officer of the participating bank or an authorized officer appointed by them. However, in the case of submission with the signature of the first appointed officer, an authorization letter with the specimen signature of the concerned officer must be sent by the Managing Director/Chief Executive Officer.

14. Collection and Monitoring:
    a) Interest/profit against the loan taken by the bank for pre-finance must be paid to Bangladesh Bank by the 10th of the following month, on a quarterly basis (for the first three quarters); b) If the distributed loan is collected/settled or no renewal application is made or the 1 (one) year tenure expires (whichever occurs first), the entire amount discounted by the bank, along with the interest of the last quarter, must be paid to Bangladesh Bank; c) If the pre-financed amount along with interest is not paid to Bangladesh Bank within the prescribed time, the current account of the concerned bank kept with Bangladesh Bank will be debited to recover/adjust the amount. In this regard, if there is a delay in recovery/adjustment, an additional 2% interest shall be paid for the period of delay; d) All credit risks regarding loans shall be borne by the concerned bank; e) All liabilities regarding the collection of customer-distributed loans shall rest with the loan-distributing banks. The claim of Bangladesh Bank shall not be linked with the collection of customer loans;

    f) If the customer defaults on timely loan repayment, it must be classified according to existing guidelines and provisions must be maintained; g) The bank must ensure the proper use of loans distributed under the said pre-finance scheme. The Project Account/Jababha Account of the benefited institution must be collected on a weekly basis from the customer. Additionally, a monitoring report must be prepared after factory inspection of the concerned institution on a quarterly basis; h) The loan program under the scheme may be verified on-site by Bangladesh Bank at any time. In this regard, consent for on-site inspection must be obtained from the borrower prior to loan approval. For on-site verification by Bangladesh Bank, information and documents related to loans provided under the scheme must be kept separately at the bank branch; i) If the proper use of distributed loans is found to be improper during the scheme tenure or at any time later during inspection/supervision by Bangladesh Bank or any other authority, the amount provided for pre-finance shall be recovered in a lump sum from the customer by the bank at the rate of Bank Rate + 2% from the current account of the concerned bank.

15. Reporting/Submission of Reports: The Managing Director/Chief Executive Officer of the participating bank or an authorized officer appointed by them must submit information regarding loan distribution and collection in the prescribed format (Annex-B) on a quarterly basis to the scheme managing department by the 10th of the following month. If the information/details verified by Bangladesh Bank regarding pre-finance loans are not submitted by the participating bank within the prescribed time, appropriate action will be taken according to the relevant laws and regulations.

16. Other Instructions:
    a) The selection of borrowers, loan approval, distribution, document execution, debt-equity ratio, proper use of loans, and monitoring shall be determined by the loan-distributing bank's own rules and regulations and the bank-customer relationship; b) To reduce credit risk, the bank may cover the working capital assistance provided to the customer with appropriate collateral; c) In the case of loan distribution under this scheme, the existing rules and regulations of Bangladesh Bank, including the policy regarding the maximum limit of loan facilities for a single customer or group (Single Borrower Limit), shall apply as appropriate; d) If an eligible institution under this scheme has any written-off loan, facilities may be provided according to the instructions mentioned in the circular regarding loan rescheduling or policy assistance, keeping the status outside the written-off list. In this regard, the concerned borrower shall not be considered a defaulter, and the said loan accounts shall be classified as SME (CIB-SE) category. However, if there is a default in 6 monthly or 2 quarterly installments according to the prescribed repayment schedule, the said loan accounts shall be reclassified as Bad and Loss (CIB-BL) category; e) The borrower and scheduled banks who contribute the most to the national economy through the proper use of loans distributed under the said scheme shall be nationally honored/recognized; f) If the loans distributed under the said scheme are misused or obtained through false, fraudulent, irregular information, etc., or if the loan becomes a defaulter, the bank may send their information to the relevant government institutions for legal action regarding loan recovery and other punitive measures against the said borrowers. In this regard, the relevant authority may take appropriate action under their existing laws/regulations. Additionally, if any officer/employee of the bank is involved in any irregularity, the bank must take necessary administrative action.

17. In the case of investments by banks operating on Islamic Shariah basis and investments approved through Islamic banking methods of other banks, banks shall provide investment to customers under this scheme based on their approved investment methods without deviating from the appropriate percentage.

18. Bangladesh Bank reserves the right to change/amend/add/modify the instructions regarding the fund mentioned in this circular from time to time.

19. These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991, and shall come into force immediately.

Yours faithfully,
(Gazi Md. Mahfuzul Islam)
Director (BRPD-1)
Phone: 9530252

Annexure 'A'
Ref No: -------------------------- Date: ----------------- To Director (BRPD-3) Banking Regulation and Policy Department-3 Bangladesh Bank Head Office Dhaka.
Dear Sir,
Regarding the application for authorization from the "Closed Industry and Service Sector Support Pre-Finance Scheme" In accordance with the instructions mentioned in BRPD-1 Circular No. 13/2026, we wish to inform that we are applying for pre-finance facilities for the following customers/customers:
a) Information regarding the requested loan:

| S.No | Customer/Institution Name | Large Industry/Service Sector | Fully Closed/Partially Closed/Operational | Name of Produced Product/Provided Service | Existing Loan Limit/Loan Amount (Taka) | Approved Loan Limit to be Distributed under Scheme (Taka) | Date of Management Committee Approval & Meeting No. | Outstanding Amount of Principal Loan Previously Distributed to Customer/Institution or Group (Taka) | Information regarding Customer's Project Account or Jababha Account | Details of Collateral (if attached) | Number of Employed Workers/Employees | Potential New Employment (in persons) |

b) Information regarding existing loans of customers/customers (if necessary, customer-wise annexure may be provided with the application):

| S.No | Customer/Institution Name | Name of Lending Bank/Financial Institution | Nature of Loan | Loan Limit | Loan Outstanding | Information if authorization facility received from any other re-finance/pre-finance or similar scheme/fund of Bangladesh Bank | Classification Information | Is it a defaulter? (Yes/No) |

2. We hereby confirm that the said borrower(s) are eligible for pre-finance according to the conditions mentioned in BRPD-1 Circular No. 13/2026 and we shall be responsible for any false or incorrect information/details regarding this matter.

3. Now, we request that the total amount (in figures) ------------- (in words --------) Taka be provided to Bangladesh Bank from the account of this bank kept with Bangladesh Bank for the authorization of the aforementioned customers. If the bank P.L.C. fails to settle the interest/loan amount on time against the loans provided to the said customers, Bangladesh Bank may debit the current account of this bank and settle it.

Yours faithfully,
Signature: Signature:
Name: Name:
Designation: Designation:
Bank Name: Bank Name:
Mobile No: Mobile No:
Email: Email:

Annexure 'B'
"Closed Industry and Service Sector Support Pre-Finance Scheme" Quarterly Report

1. Bank Name:
   a) Capitalized information regarding pre-finance provided under BRPD-1 Circular No. 13/2026:

Number of Pre-finance Beneficiary Institutions	Amount of Pre-finance Provided (in Crore Taka)	New Institutions Created
Large Industry	Service Sector	Total	Large Industry	Service Sector	Total	Large Industry	Service Sector	Total

b) Customer-wise information regarding pre-finance:

| S.No | Institution Name | Institution Address and Contact Mobile Number | Institution's NID (National ID) | Institution's EOG | Nature of Institution (Large Industry/Service) including Sub-sector | Name of Produced Product/Service | Date of Approval from Bangladesh Bank | Distributed Loan Limit | Loan Outstanding | Total Export Volume after Pre-finance for Export-oriented Institutions | Number of Employed Workers/Employees | New Institutions Created | Information regarding Bank Representative/Inspector Deployed at Institution |

Information of the Officer Responsible for Sending Information (with Official Seal) Signature:
Name:
Designation:
Mobile No: