Yes, subject to the foreign borrowing framework. Private sector borrowers generally need approval or must meet the conditions set for foreign currency loans, with requirements on lender eligibility, pricing, tenor, use of proceeds and reporting. Invest Bangladesh, which took over BIDA's functions in August 2026, and Bangladesh Bank are the key authorities, and the scrutiny process can take time. Shareholder loans and offshore banking unit facilities follow their own rules. We assess the proposed structure, prepare applications and supporting documents, and coordinate with the lender's counsel so that approvals are in place before drawdown and repayment can be remitted.

Common forms include mortgages over land and buildings, hypothecation of stock, receivables and machinery, pledges of shares, assignments of contracts and insurance proceeds, and corporate or personal guarantees. Mortgages of immovable property generally need registration at the sub-registry with stamp duty and fees. Charges created by companies should be filed with the Registrar of Joint Stock Companies and Firms within the statutory time limit, or they risk being void against a liquidator and other creditors. We advise on the most effective package for each banking transaction and manage stamping, registration and filings to completion.

The Artha Rin Adalat Ain 2003 created specialist courts for recovery claims by financial institutions, with procedures designed to be faster than ordinary civil suits. Keep loan documents and demand notices in order. Borrowers can raise defences, appeal and bring writ petitions, and execution against mortgaged property can face title and possession challenges. Settlement and rescheduling remain common outcomes in loan recovery. We advise lenders on building a strong file before default, choosing the right remedies and moving efficiently through suit and execution, and advise borrowers on credible defences and negotiated solutions.

Interest paid to non-residents is subject to withholding tax, and the Finance Act 2026 reduced the rate on such interest to 10%, from 20% previously. A lower rate may be available under a double tax treaty if the lender is resident in a treaty country and the conditions are met, including documentation. Facility agreements usually include tax gross-up clauses, so the rate matters to pricing. Fees and other payments may be treated differently from interest. We confirm the current treatment, advise on treaty relief and documentation, and review gross-up and tax indemnity clauses in cross-border banking documents before signing.

Yes. Bangladesh Bank sets rules on rescheduling, restructuring and exit arrangements for classified loans, including down payment requirements, the number of times a loan may be rescheduled and the effect on classification and credit reporting. These rules have been revised several times and should be checked for each case. A restructuring also needs proper documentation of new terms, fresh or confirmed security, and any waivers or releases agreed. We advise borrowers preparing proposals and lenders assessing them against policy and their own credit position, negotiate terms, and document the outcome so that it is enforceable and consistent with regulatory requirements.

Yes. Lenders often take post-dated or undated cheques from borrowers and guarantors, because dishonour can lead to criminal proceedings under the Negotiable Instruments Act 1881 as well as civil recovery. Courts have considered the use of security cheques in many reported cases, and the outcome depends on the facts, the documents and procedural compliance, including notice requirements and time limits. Cheques should support, not replace, proper security, and lenders who rely on them alone often find recovery slower than expected. We advise lenders on taking and using security cheques correctly, and act for borrowers and guarantors defending cheque dishonour cases.

Beyond the credit assessment, a foreign lender should understand the foreign borrowing approval process, the remittance mechanics for interest and principal, withholding tax and gross-up, the enforceability of foreign law documents and foreign judgments, the effectiveness of local security and the practicalities of enforcement in Bangladesh. Foreign currency shortages in the banking system and regulatory changes have at times delayed remittances. We give foreign lenders a clear picture of these risks and how other international lenders typically manage them, deliver capacity and enforceability opinions, and structure conditions precedent so that the facility works once funds are disbursed.

Islamic finance in Bangladesh uses sale, lease and partnership structures such as murabaha, bai muajjal, ijarah and musharaka instead of interest-bearing loans. Shariah-based banks operate under the general banking framework, with Bangladesh Bank guidelines and their own Shariah supervisory processes. Documentation must reflect the underlying transaction, such as purchase and sale of goods, while also protecting the bank's position on payment and security. Recovery proceedings apply to Islamic banking claims as well, but the documents must be drafted with that in mind. We advise banks and customers on structuring, documentation, conversion of conventional facilities and disputes.