Business Community Seeks Faster Disbursement of Incentive Loans, Calls for Easing Conditions
Published : 23:02, 8 October 2026
Special Correspondent: Entrepreneurs are facing various complications in accessing incentive loans announced to help reopen closed factories and bring affected businesses back into economic activity. Business leaders have called for easing the loan eligibility conditions, including withdrawing the requirement to deposit 2 percent in cash to regularise defaulted loans. They also urged banks to expedite loan applications and reduce delays in the approval process.
The demands were raised at a meeting between the Bangladesh Bank and representatives of various business organisations on Tuesday. At the meeting, business leaders alleged that entrepreneurs were facing various complications and bureaucratic delays at the banking level while seeking loans from the Tk 20,000 crore incentive fund. In many cases, banks are asking for additional documents, while decisions on loan applications are also taking considerable time.
Representatives of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA), Bangladesh Chamber of Association (BCA), Bangladesh Employers’ Federation (BEF), Bangladesh Jute Association (BJA), and Metropolitan Chamber of Commerce and Industry (MCCI) attended the meeting.
Deputy Governors Md Kabir Ahmed and Md Sarwar Hossain, along with officials from relevant departments, represented Bangladesh Bank.
Review of Incentive Schemes
The meeting reviewed the implementation status of various government and Bangladesh Bank incentive programmes. Participants also discussed whether there were any gaps, ambiguities or implementation-related difficulties in the policies issued by Bangladesh Bank.
Emphasis was placed on identifying genuinely affected businesses and ensuring that they receive the necessary financial support.
Business representatives said delays in convening bank board meetings were slowing down the approval of loans and financial assistance. In some banks, it can take up to a month for a board meeting to be held. They therefore called for weekly or special board meetings, when necessary, to ensure faster disposal of applications for incentive loans.
They also called for an end to requests for unnecessary additional documents and urged banks to simplify the decision-making process. According to the business representatives, complexities at different levels of the banking system are preventing genuinely affected entrepreneurs from accessing the incentive programme.
Bangladesh Bank officials said proper implementation of the incentive programme is a shared responsibility of all relevant stakeholders. Banks, business organisations and other stakeholders need to work in coordination to ensure that genuinely affected businesses receive assistance quickly. The meeting also stressed the importance of ensuring proper utilisation of funds under the incentive packages.
Business organisations also urged authorities to ensure proper scrutiny and verification before issuing no-objection certificates (NOCs).
Business Leaders Seek Faster Disposal of Applications
BKMEA President Mohammad Hatem told journalists that entrepreneurs are interested in accessing the Tk 20,000 crore incentive package. However, many are unable to apply because of what he described as a lack of cooperation from some banks.
According to him, some banks are reluctant to accept applications, while others are discouraging entrepreneurs by citing various reasons.
Hatem said there were some complexities in the circular issued by Bangladesh Bank. Business leaders have called for those complications to be resolved quickly and for applications already submitted to be processed without further delay. Bangladesh Bank has also assured them that the matter would be addressed promptly, he said.
Only Tk 50 Crore Disbursed from Tk 20,000 Crore Fund
In May, Bangladesh Bank announced a Tk 62,000 crore fund aimed at reopening closed factories and restoring momentum to economic activities. Loans from the fund were to be provided to entrepreneurs in various sectors at an interest rate of up to 7 percent. Bangladesh Bank had said the programme was expected to create employment for 2.5 million people.
However, business leaders said the practical impact of the incentive programme has yet to become visible in the economy, even four months after its announcement.
According to Bangladesh Bank sources cited in the discussion, only Tk 50 crore has so far been disbursed against the Tk 20,000 crore fund. The pace of loan disbursement under other components of the programme has also been described as unsatisfactory.
