Obtaining approval for foreign loans is crucial for international business expansion, governed by specific legal frameworks such as the Bangladesh Bank regulations and the BIDA Guideline, 2023. This process entails securing regulatory consent to obtain financial assistance from overseas sources, ensuring strict adherence to legal and financial guidelines. Such approvals not only foster a stable economic environment but also facilitate global collaboration, enabling companies to achieve growth objectives while upholding financial integrity.
Issuing authority
Bangladesh Investment Development Authority (BIDA)
Address: E-6/B, Sher-e-Bangla Nagar, Agargaon, Dhaka 1207, Bangladesh
Email: service@bida.gov.bd
Required list of all documents
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Duly filled in the Application form [Original]
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Board’s resolution related to the proposed Foreign Private Loan/ Deferred Payment
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Latest registration (full set) from BIDA [With the inclusion of proposed loan/deferred payment maintaining dept-equity ratio at-least 70:30]
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Term sheet/ Loan Agreement/ Supply Agreement between the parties
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Credential of the Sponsors/ Directors
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Duly Filled in CIB Inquiry form (Inquiry form-1&2) and Undertaking form Sponsors/Director [For collection of Up-to-Date CIB report from Bangladesh Bank]
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CIB Certificate of the company and its Sponsors/ Directors
[-From Nominated Bank;
-CIB certificate will clearly specify the recent date of searching CIB online and the status in general]
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Track record of past foreign loans/ deferred payment (if any) [With the approval letter and Bank Certificate of all transactions, utilization and outstanding]
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Last year Audited Balance Sheet [Existing dept-equity ratio based on Audited Balance sheet (including Proposed amount) should be at least 70:30]
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The Utilization certificate from nominated Bank
[-The Justification of estimated price/quotation of the capital machineries, spare parts, etc (Summary of the capital machineries (importer or to be imported) for the purpose of the proposed loan/ deferred payment) submitted by the borrower in comparison with the latest market price with supporting documents;
-Refinance/reimbursement of local currency liabilities using foreign currency loan is highly discouraged
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Up to date credit rating report of the company
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Up to date financial analysis
[a. Internal Rate of Return (IRR);
b. Year of achieving break-even point with break-even analysis;
c. Payback period;
d. Sensitivity analysis in term of IRR;
e. Debt Service Coverage Ratio (DSCR);]
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Up to date details Feasibility report of the project;
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Form-X, Form XII and Form-XV from RJSC&F;
[-As a proof of authorized capital, paid up capital shareholder structure, etc.
-Paid up capital should be at least 30% of authorized capital]
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Certificate of incorporation and Certificate of commencement; [From Register of Joint Stock Companies (RJSC) Bangladesh]
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Memorandum & Articles of Association [Certified copy]
Step by step all process
Step 1 Application Submission and Documentation: The application must be made using a prescribed application form. Along with the application, supporting documents should be submitted that clearly set out details of the loan, including its purpose and intended use by the borrower, repayment schedule with dates and amounts, and interest payment dates and amounts. Checks are conducted to ensure all the required submitted documents are appropriate.
Step 2 Committee Recommendation: Fully documented proposals will be placed before the Scrutiny Committee, headed by the Governor of Bangladesh Bank, for final approval. Based on the recommendations by the committee, the applicant gets clearance from the Scrutiny Committee.
Step 3 Fee Payment and Receipt Preparation: The investor pays the fee to the nominated bank as a pay order and provides the receipt to BIDA. BIDA then prepares a money receipt for the investor.
Step 4 Approval Notification: A letter is issued from BIDA if the applicant gets the approval. Once BIDA approves an application, no other permission will be required to make repayment of principal and interest.
Fee schedule
SL Amount of Foreign Loan Loan Approval Fee
1. Up-to 1 Crore BDT 5000.00
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1 Crore to 5 Crore BDT 10,000.00
3. 5 Crore to 10 Crore BDT 20,000.00
4. 10 Crore to 25 Crore BDT 50,000.00
5. >25 Crore BDT 100,000.00 **
Official time limit
1 Month/ 30 Days
Actual time limit