Securing a business loan in Bangladesh requires a clear understanding of the prevailing interest rates, which can vary depending on loan amounts, tenures, and the specific financial institutions offering them. As of January 2025, the interest rates are largely determined by the Six-Month Moving Average Rate of Treasury Bills (SMART), with banks adding a margin to set their final lending rates. This guide offers an in-depth look at business loan interest rates in Bangladesh, including a breakdown of the SMART framework, a detailed comparison of different bank rates, and factors influencing loan pricing.
Understanding the SMART Framework
The SMART system, introduced by Bangladesh Bank, is a mechanism for determining lending rates based on the Six-Month Moving Average Rate of Treasury Bills. Banks use this as a benchmark and can add a margin (typically up to 3.5%) to the SMART rate to determine their final loan interest rates. For example, if the SMART rate is 7.20%, a bank might add a 3.5% margin, making the final interest rate 10.70%.
This system ensures that lending rates remain flexible, responding to fluctuations in the market while providing banks with a clear structure for rate-setting.
Interest Rates by Loan Amount and Tenure
In 2025 Business loan in Bangladesh are easy to approval, here are some tips and the interest rate for business loan in Bangladesh 2025. Interest rates for business loans in Bangladesh differ based on the loan amount and tenure. Below is a table summarizing the interest rates across various banks, broken down by loan amount and repayment period:
| Bank Name | Loan Amount (BDT) | Tenure (Years) | Interest Rate (%) |
|---|---|---|---|
| LankaBangla Finance PLC | 1,00,000 – 10,00,000 | 1 – 5 | 16.00 – 17.00 |
| 10,00,001 – 1,00,00,000 | 1 – 5 | 15.50 | |
| Mutual Trust Bank PLC | 1,00,000 – 10,00,000 | 1 – 5 | 13.00 |
| 10,00,001 – 1,00,00,000 | 1 – 5 | 13.00 | |
| Agrani Bank PLC | 1,00,000 – 10,00,000 | 1 – 5 | 12.90 |
| 10,00,001 – 1,00,00,000 | 1 – 5 | 12.90 | |
| Sonali Bank PLC | 1,00,000 – 10,00,000 | 1 – 5 | 12.50 – 12.90 |
| 10,00,001 – 1,00,00,000 | 1 – 5 | 12.50 – 12.90 | |
| Prime Bank PLC | 1,00,000 – 10,00,000 | 1 – 5 | 12.00 – 14.00 |
| 10,00,001 – 1,00,00,000 | 1 – 5 | 12.00 – 14.00 |
Note: The rates provided above are indicative and may vary. It is always advisable to check directly with the respective banks for the most up-to-date information.
Factors Influencing Interest Rates
Interest rates for business loans are not static. Several factors play a significant role in determining the rates offered by financial institutions:
1. Loan Amount
Larger loan amounts often attract different rates than smaller ones. Banks may provide lower interest rates for loans exceeding certain thresholds, due to the larger financial commitment.
2. Tenure
The duration of the loan plays a crucial role in rate determination. Generally, short-term loans tend to have lower interest rates compared to long-term loans. However, longer loan tenures can result in smaller installment payments, albeit with higher overall interest costs.
3. Creditworthiness
A business’s credit history significantly impacts the interest rate. Companies with a strong track record of timely repayments and sound financial management may be offered more favorable interest rates.
4. Collateral
Secured loans (backed by collateral such as property or equipment) typically attract lower interest rates compared to unsecured loans. This is because the lender has a form of guarantee in case of default.
Recent Trends and Updates
Recent economic shifts have affected lending rates in Bangladesh. In response to inflationary pressures, Bangladesh Bank raised its repo rate by 50 basis points to 10% in October 2024. This adjustment can indirectly influence the interest rates offered by commercial banks, as they often adjust their lending rates in response to changes in the central bank’s policy.
Businesses seeking loans should stay informed about changes in monetary policy, as they can significantly impact loan costs.
Conclusion
Navigating business loan interest rates in Bangladesh requires careful consideration of several factors, including loan amount, tenure, and the creditworthiness of the business. While the SMART framework sets the baseline for rates, individual banks may offer rates based on their internal policies and market conditions.
For businesses, understanding these factors is critical to securing a loan with favorable terms. Whether opting for a short-term loan or a larger, long-term investment, it’s advisable to compare rates from multiple banks and consult financial advisors to ensure the best deal.
