Bangladesh Bank has nearly doubled the borrowing limits for credit card holders, setting the maximum allowable limit at BDT 4,000,000. Alongside this increase, the central bank has also capped the maximum interest rate on such loans at 25 per cent. Previously, customers could borrow up to BDT 1,000,000 without collateral and up to BDT 2,500,000 against collateral. Under the new guidelines, unsecured borrowing is permitted up to BDT 2,000,000, while collateral-backed credit can reach up to BDT 4,000,000.
The updated policy, announced on Sunday, replaces the previous credit card regulations issued in 2004. It includes comprehensive instructions on credit limits, interest rates, fees, and several measures to ensure consumer protection.
Key Features of the New Credit Card Guidelines
| Feature | Previous Limit | New Limit |
|---|---|---|
| Unsecured credit limit | BDT 1,000,000 | BDT 2,000,000 |
| Collateral-backed credit limit | BDT 2,500,000 | BDT 4,000,000 |
| Maximum interest rate | Not specified | 25% per annum |
| Cash withdrawal limit | Not specified | 50% of total credit limit |
| Grace period for cash withdrawals | N/A | No interest-free period |
According to the circular, borrowing limits are generally determined based on the applicant’s deposited funds or other secure collateral held with the bank. Cardholders may now withdraw up to 50 per cent of their total credit limit in cash. While credit card purchases continue to enjoy an interest-free period for a specified duration, cash withdrawals will accrue interest immediately.
The guidelines also impose strict rules on fees and interest charges. Interest may only be levied on the outstanding amount, not the full billing sum. Banks are prohibited from charging any fees prior to card activation, and late payment penalties may only be applied once per billing cycle. Any changes to interest rates or fees must be communicated to cardholders at least 30 days in advance, either in writing or electronically.
Consumer protection measures have been strengthened. Banks and recovery agents are forbidden from harassing borrowers or their families, and contact for debt recovery must be restricted to office hours. Banks are required to maintain 24-hour helplines to block lost or stolen cards immediately.
Eligibility criteria for credit cards have also been clarified. Applicants must be at least 18 years old, though students aged 16 and above may hold supplementary cards under a primary cardholder. Additionally, applicants must possess a valid e-TIN certificate and a clean CIB (Credit Information Bureau) report.
Bangladesh Bank emphasised that the updated policy aims to expand responsible credit access, strengthen risk management, and protect consumer rights as credit card usage continues to grow rapidly.