Investors or customers can apply and avail refinancing schemes through the Banks/FIs who are evaluating the loan application and disbursing the loan amount. The customers are required to approach the Banks/FIs for refinancing theirgreen products/projects/initiatives.
To be included in these refinancing schemes, interested Banks/FIs need to sign a participatory agreement with the Sustainable Finance Department of Bangladesh Bank. So far, 44 Banks and 25 FIs have signed agreement with Sustainable Finance Department of Bangladesh Bank under Refinance Scheme for green products/initiatives/projects. Bangladesh Bank applies 1% interest rate to the Banks/FIs for the green products/project/initiatives and Banks/FIs are allowed to add maximum 4% to this interest rate to customers while disbursing the loan. So, the maximum interest rate at consumer level is 5% and the loan tenure is 3-10 years (20 years for affordable green housing) with a maximum grace period of 1 year.
