Bangladesh: lending & credit regulation

Regulated

Bangladesh lending regulated by Bangladesh Bank; no specific consumer credit license, strict prudential rules apply

Lead regulator:: Bangladesh Bank
Key law:: Bank Companies Act, 1991 (and associated Prudential Regulations)
Last updated:: 2026-07-12

Consumer lending and credit activities in Bangladesh are regulated exclusively by the central bank, Bangladesh Bank, under the Bank Companies Act, 1991. There is no separate licensing regime for non-bank consumer lenders; only scheduled banks and authorized financial institutions may engage in consumer financing.

Bangladesh Bank enforces strict prudential regulations for consumer financing, including auto and personal loans, with specific caps on loan amounts and standardized tenures. Recent directives have increased auto loan limits to BDT 80 Lac for electric and hybrid vehicles and standardized personal loan terms.

Digital lending is permitted through 'e-loan' services launched by scheduled banks, subject to strict automation and biometric verification requirements, with a maximum limit of BDT 50,000. Credit card operations are also strictly regulated with risk management mandates and a credit limit cap of BDT 20 lakh.

The regulatory direction emphasizes financial inclusion, digital adoption, and responsible lending, while maintaining tight control over credit risk through IFRS 9 compliance and structured refinance schemes for specific sectors.

Who regulates

Bangladesh Bank
Central bank and primary supervisor of all scheduled banks and financial institutions offering consumer credit.
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Core laws & rules

Bank Companies Act, 1991 (1991)
The primary legislation governing the establishment, operation, and regulation of banks in Bangladesh, under which Bangladesh Bank issues all prudential regulations for consumer financing.
Prudential Regulations for Consumer Financing (2026)
Specific circulars issued by Bangladesh Bank detailing limits, tenures, and risk management requirements for auto and personal loans.
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Licensing & registration

Scheduled Bank / Authorized Financial Institution
Only scheduled banks and authorized financial institutions licensed by Bangladesh Bank can offer consumer credit products such as auto loans, personal loans, and credit cards.
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E-Loan Service Provider
Scheduled banks may launch digital e-loan services, requiring fully automated processing and biometric verification, with a maximum loan limit of BDT 50,000.
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Restrictions & warnings

Auto loan limits are capped at BDT 80 Lac for electric, hybrid, and domestic vehicles. Personal loan tenures are standardized.
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Credit card operations are subject to strict risk management and responsible lending practices, with a maximum credit limit of BDT 20 lakh.
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E-loans are restricted to a maximum of BDT 50,000 with a 12-month tenure and must be fully automated with biometric verification.
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Banks must implement IFRS 9 Expected Credit Loss (ECL) frameworks for loan provisioning.
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Direction of travel

Regulatory focus is on promoting digital lending, financial inclusion, and responsible credit practices, with ongoing updates to prudential regulations to support economic growth.
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Sources

Guidelines on Credit Card Operations of Banks · 2026-03-15
BRPD-1 Circular Letter No. 21: Prudential Regulations for Consumer Financing (Auto and Personal Loans) · 2026-06-25
BRPD-1 Circular No. 11: Commercial Launching of E-Loan · 2026-05-11
BRPD-1 Circular Letter No. 15: Prudential Regulations for Consumer Financing · 2026-05-05
Guidance for Banks Implementing IFRS 9 Financial Instruments · 2026-03-08

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This guide is compiled automatically from 5 primary-source documents published by Bangladesh's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.