Bangladesh Bank has included 26 new products under its revolving refinance scheme for solar energy, biogas and effluent treatment plants to give loans at low interest. The banking regulator incorporated renewable energy, energy-efficient technology, waste management, alternative energy and non-fire block brick in the scheme.
The loan limit for the products range from Tk 1.5 lakh to Tk 30 crore, the central bank said in a notice. The inclusion of the new products came as part of the BB’s efforts to expand renewable energy and environment-friendly technology.
Currently, 18 products are getting the low-cost loans under the scheme.
Large solar photovoltaic plants and wind energy projects will get loans at single digit interest, according to the notice. Assemblers of LED lights and auto-sensor power switches can borrow up to Tk 3 crore and Tk 2 crore respectively at 9 percent interest. Manufacturers of compressed block-bricks and concrete block-bricks will be able to borrow up to Tk 4 crore and Tk 10 crore.
The central bank set up a Tk 200 crore revolving fund in 2009 for banks and financial institutions to give loans at low interest in solar energy, biogas and effluent treatment sectors.
The central bank of Bangladesh provides funds to banks and financial institutions at 5 percent interest, so they can provide loans on soft terms.
Banks will keep the interest rate below 10 percent for loans to customers.