Region

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Regulator

2012-11-22

Added 2026-08-12 · Updated 2026-08-14

EEF Circular No. 33: Procedures for providing NOC in favor of EEF approved capital machinery based agriculture sector projects for taking working capital from different Banks and FIs

The document establishes procedures for Equity and Entrepreneurship Fund (EEF) approved capital machinery-based agriculture projects to obtain a No Objection Certificate (NOC) for working capital loans. Applicants must submit applications via the evaluating bank to the ICB's EEF Division, detailing loan necessity, amount, and proposed bank, along with audited financial statements. The approved working capital loan amount is capped at 51% of the total project cost, and projects must not have fully disbursed EEF assistance or commenced commercial production before applying. Borrowers must mortgage fixed assets up to 51% of the total project cost or provide personal guarantees, with the EEF assuming no liability.

Bangladesh

Bangladesh Bank

Bangladesh Bank Chief Controller EEF Unit EEF Circular No. 33 Date: 22/11/2012 Managing Director/Chief Executive Officer All Scheduled Banks and All Financial Institutions Dear Sir,

Regarding the provision of No Objection Certificate (NOC) in favor of Equity and Entrepreneurship Fund (EEF) approved capital machinery-based projects in the agriculture sector for taking working capital loans from banks/financial institutions.

In this regard, we draw your attention to EEF Circular No. 31, dated 22/04/2010, regarding the taking of working capital loans in favor of EEF-assisted projects. After further examination of the effectiveness of the said circular in practice and the need for working capital loans for capital machinery-based agriculture sector projects, the following decisions have been taken in continuation of the aforementioned circular:

If a project approved by the EEF for capital machinery in the agriculture sector wishes to take a working capital loan from a bank/financial institution, the application must be submitted to the EEF Division of ICB through the concerned bank/financial institution evaluating the project. The application must state the necessity/justification for taking the working capital loan, the amount of the loan, the name of the proposed bank/financial institution, and the initial terms of the loan. The proposal for taking the loan must be approved by the management committee of the concerned project. Along with the application, audited financial statements (Profit & Loss Account and Balance Sheet) from the incorporation of the company up to the time of submitting the application (previous quarterly/last three years, if applicable) must be submitted.
It must be clearly stated in the application whether the working capital loan will be taken by mortgaging the fixed assets of the EEF-assisted project or the personal assets of the entrepreneurs.
After receiving the application, ICB will conduct preliminary screening and then inspect the relevant details of the project on-site.

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-: 2: 4) Upon receiving a favorable report from the on-site inspection, the actual demand amount against the requested working capital loan will be determined through detailed analysis. The amount of this working capital loan will not exceed 51% of the total project cost approved.

Applications for working capital loans submitted after the entire EEF assistance approved in favor of any project has been disbursed and before the commencement of commercial production activities of the project will not be considered. In this case, the terms of the sanction letter issued in favor of the project must be ensured to be implemented.
If a No Objection Certificate is provided for taking a working capital loan in favor of any EEF-assisted project, the project management can mortgage the fixed assets (land/building/machinery) invested up to a maximum of 51% of the total project cost of the EEF-assisted project against such loan to the concerned bank/financial institution providing the loan. The project management will provide copies of all documents related to this mortgage to ICB.
In cases where the entrepreneurs of the project wish to take a working capital loan in favor of the project from a bank/financial institution by mortgaging their own assets other than the fixed assets of the EEF-assisted project, ICB will make decisions on a priority basis following the procedures mentioned in serials 1 to 6 above.
The entrepreneurs will provide personal guarantees for this loan, and the EEF authority will have no liability/responsibility.
The matter of providing a No Objection Certificate for taking a working capital loan will be considered on a case-to-case basis according to the merit of the project.

This instruction shall be effective immediately.

Please acknowledge receipt and inform all concerned parties.

Yours faithfully, Signed (Md. Sirajul Islam) General Manager Phone: 9530212