In order to ease the burden of the couple who are going to be married, Bangladesh Bank (BB) has announced a new marriage loan scheme, allowing individuals to borrow up to BDT 2 million. The loan will be repayable through monthly installments and the amount of loan will be allotted based on the applicant’s income level and available assets. This structured approach is intended to ensure that borrowers can meet repayment obligations without falling into financial distress.
While this is the first time the central bank has introduced such a scheme, several private commercial banks have already launched similar products in recent years. Institutions such as BRAC Bank, City Bank, and Dutch-Bangla Bank have offered personal or marriage-specific loans, but the central bank’s initiative is expected to standardize terms and improve access under regulated guidelines.
According to BB officials, the loan can be used to cover a wide range of marriage-related expenses, including venue bookings, catering, wedding attire, gifts, dowry-related obligations, decoration, and other ceremonial costs. The repayment period will range from one to five years, depending on the borrower’s financial profile and the size of the loan. Bangladesh Bank has emphasized that banks will conduct proper due diligence, and the ratio of loan disbursement will be directly linked to an applicant’s verified income or declared assets.
A senior official from Bangladesh Bank noted that the objective of this scheme is to offer a safe and formal alternative to high-interest informal lending, which many families turn to during wedding seasons. While the initiative has been welcomed by many, economists have expressed mixed views, with some cautioning against encouraging loans for non-productive purposes. To address such concerns, BB will require strict monitoring of loan use, and misuse or submission of false documentation may result in penalties or early recall of the loan.
Applications under this scheme are expected to open in early July 2025 through scheduled commercial banks, with more detailed guidelines to be issued in the coming days.
