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2016-12-14

Added 2026-08-10 · Updated 2026-08-14

DMD Circular No. 07: Regarding Loan Sanction with Lien on WEDB, USDIB, and USDPB

The Department of Data Management of Bangladesh Bank approves loans secured by a lien on Wage Earners Development Bonds (WEDB), US Dollar Investment Bonds (USDIB), and US Dollar Premium Bonds (USDPB). The loan limit is capped at 75% of the face value of the bonds, which must be held in the borrower's own name and cannot be transferred as third-party security. Loan proceeds must be invested exclusively within Bangladesh and cannot be transferred abroad, and no loans may be issued from overseas bank branches, although bonds purchased overseas can secure loans from domestic branches.

Bangladesh

Bangladesh Bank

Department of Data Management Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh

30 Agrahayan, 1423 Circular No.-DMD-07/2016 Date: ------------------ 14 December, 2016

Executive Director/General Manager Bangladesh Bank Motijheel, Dhaka/Chittagong/Khulna/Rajshahi/Bogura/Sylhet/Barisal/Rangpur/Mymensingh/Sadarghat, Dhaka.

Managing Director/Chief Executive All Scheduled Banks of Bangladesh.

Dear Sir,

Regarding Loan Sanction with Lien on Wage Earners Development Bond, US Dollar Investment Bond, and US Dollar Premium Bond.

Reference is drawn to the relevant provisions of Circular No. DBR.UD.04/03/2016-08 dated 28/03/2016 regarding Wage Earners Development Bond, US Dollar Investment Bond, and US Dollar Premium Bond, and accordingly, approval is granted to provide loans against the aforementioned bonds subject to the following conditions:

The loan limit against Wage Earners Development Bonds, US Dollar Investment Bonds, and US Dollar Premium Bonds held as lien is determined to be a maximum of 75% (seventy-five percent) of the face value (principal amount) of the bonds.
The bonds purchased by the customer may be held as lien/security against the loan taken in their own name.
Wage Earners Development Bonds, US Dollar Investment Bonds, and US Dollar Premium Bonds are not transferable as third-party security (third-party guarantee) in any manner.
The proceeds of the loan obtained against the lien of Wage Earners Development Bonds, US Dollar Investment Bonds, and US Dollar Premium Bonds must be invested exclusively within Bangladesh; such proceeds are not transferable abroad.
No kind of loan may be provided against the lien of bonds from any overseas bank branch. However, loan facilities may be availed from domestic bank branches against bonds purchased from overseas bank branches.

Yours faithfully,

(Md. Aulad Hossain Chowdhury) General Manager Phone: 9530131 E-mail: dmd.bbb@bb.org.bd