Regulatory AlertsBangladesh: lending & credit regulation
RegulatedLending monopolized by scheduled banks; NBFCs restricted; no P2P framework
- Lead regulator
- Bangladesh Bank
- Also involved
- None for lending; BSEC for capital markets
- Core law
- Bank Companies Act, 1991
- Entry capital
- BDT 500m (Commercial Bank)
- Approval timeline
- 12-24 months for new bank license
- Customer assets
- Banks only; no third-party custodians
- Data protection
- Digital Security Act 2018 · DSA Authority
- Sandbox
- No
Bangladesh maintains a strict banking-centric lending regime. Only scheduled banks and specialized finance companies (SFCs) are authorized to lend. Non-Banking Financial Companies (NBFCs) are heavily restricted and generally prohibited from accepting deposits or engaging in pure lending without specific licenses. There is no regulatory framework for P2P lending or independent credit scoring services.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Consumer lending | LicenceBanking License / SFC License[1][2] Only scheduled banks and SFCs may lend; strict prudential norms apply | BDT 500m (Commercial Bank) | 12-24 months | Bangladesh Bank |
| SME / commercial lending | LicenceBanking License / SFC License[3] CMSME financing targets mandated for banks; refinance schemes available | BDT 500m (Commercial Bank) | 12-24 months | Bangladesh Bank |
| Microfinance | LicenceSFC License / MF License[4][5] Specialized Finance Companies handle microfinance; strict deposit caps | BDT 50m (SFC) | 6-12 months | Bangladesh Bank |
| Buy-now-pay-later | Uncertainverify with regulator No specific BNPL regulation; likely falls under general lending or credit cards | — | — | — |
| P2P lending platform | Prohibited No P2P framework; lending restricted to licensed entities | — | — | Bangladesh Bank |
| Credit bureau / scoring | Uncertainverify with regulator No independent credit bureau licensing; banks use internal scoring | — | — | — |
| Debt collection | Uncertainverify with regulator No specific licensing for third-party collectors; regulated under banking laws | — | — | — |
New — what changed recently
- 2026-06-25Prudential Regulations for Consumer Financing — Increased auto loan limits to BDT 80 Lac and standardized personal loan tenures[2]
- 2026-05-11Commercial Launching of E-Loan — Mandated digital e-loan services with BDT 50,000 limit and biometric verification[6]
- 2026-03-15Guidelines on Credit Card Operations — Established comprehensive framework for credit cards with risk management mandates[1]
Market-entry checklist
- 1Secure Banking LicenseApply to Bangladesh Bank for a commercial bank or SFC license with BDT 500m capital
- 2Establish Compliance FrameworkImplement AML/CFT policies aligned with Bangladesh Bank's BRPD guidelines
- 3Adopt Digital Lending ProtocolsSet up biometric verification and automated processing for e-loans per 2026 directives
- 4Register for Refinance SchemesEnroll in BB refinance facilities for CMSME and agricultural lending to lower costs
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
- SMESPD Circular Letter No. 02: Financing in Cottage, Micro, Small and Medium Enterprises (CMSMEs) · 2026-05-24
- FID Circular Letter No. 01: Refinancing Scheme for Marginal/Landless Farmers, Low-Income Professionals, School Banking Account Holders, and Small Businessmen with Tk. 10/50/100 Accounts · 2026-06-02
- ACD-1 Circular No. 01: Refinance Scheme for Agricultural and Rural Sector to Increase Agricultural Production and Employment Generation · 2026-06-08
- BRPD-1 Circular No. 11: Commercial Launching of E-Loan · 2026-05-11