# How to Get a Green Loan for a Garment Factory in Dhaka or Gazipur

Canonical: https://senseible.earth/climate-intelligence/green-loan-garment-factory-dhaka

Published 2026-10-13.

Drive north from Dhaka through Tongi into Gazipur and the factories never really stop. Knit, woven, denim and the washing and dyeing plants that serve them sit side by side, and between them they make a large share of what Bangladesh sells to Europe. Many have already invested in efficiency, and Bangladesh has become known for its certified green garment factories.

What owners ask is how to pay for the next round: the effluent plant upgrade, the solar roof, the boiler replacement. Bangladesh Bank has run green funds for years. The difficulty is less whether money exists than whether a given factory can reach it.

## The main windows

**Green Transformation Fund (GTF).** Bangladesh Bank set up the GTF in 2016 as a US$200 million foreign-currency window for export-oriented textile and leather firms, and later added a €200 million tranche. It finances imported capital machinery for water efficiency in wet processing, waste management and recycling, renewable energy, energy efficiency, heat management and better working conditions. From September 2019 it was opened to all manufacturer-exporters importing green capital machinery. The Daily Star reported that the rate on GTF loans was fixed at 5 percent a year: Bangladesh Bank's 2 percent plus up to 3 percent for the lending bank.

**Taka refinancing for green products.** Bangladesh Bank also refinances banks for listed green products and projects. The Business Standard reported a 5 percent client-end cap on green refinancing for water-saving and wastewater recycling.

Terms on both have changed over time. Ask your bank for the current circular.

## Why so few factories use them

The numbers suggest the funds are under-used. The Business Standard reported that only Tk778 crore of the Tk3,720 crore GTF had been disbursed, about 21 percent. Apparel Resources reported green finance at about 2 percent of total bank advances, against a Bangladesh Bank guideline of at least 5 percent.

Owners give consistent reasons. The GTF pays for imported machinery, which one factory owner put at about a third of a green project's cost, leaving civil works, installation and local equipment to other loans. Smaller factories face higher borrowing costs and tougher collateral demands, which can make an otherwise sound project unviable.

## How to make an application work

- **Size the whole project, then split it.** Put the imported machinery through the GTF and plan separate finance for the rest, so the project does not stall halfway.
- **Bring a baseline.** Twelve months of electricity, gas, diesel and water records, by month and in physical units. That is what shows the saving.
- **Match the eligible list exactly.** Use the circular's category names in your proposal.
- **Plan the evidence after installation.** Meter readings and bills are what your bank, and your European buyers, will ask for next year.

The same baseline answers the buyer. EU brands now ask Bangladeshi suppliers for energy and emissions data, as covered in [CBAM and CSDDD for Bangladesh garment exporters](https://senseible.earth/climate-intelligence/bangladesh-rmg-exporters-eu-cbam-csddd-2026) and the [Scope 3 calculator guide for Bangladesh textile exporters](https://senseible.earth/climate-intelligence/scope-3-calculator-bangladesh-textile-exporters). For a wider view of lenders, see [accessing green finance in Bangladesh manufacturing](https://senseible.earth/climate-intelligence/bangladesh-manufacturing-green-finance-access-guide).

Senseible turns utility bills and fuel invoices into monthly energy and emission records linked to their source documents. Confirm current eligibility and rates with your bank before you apply.

## Related guides

- [green finance for ship recycling in Chattogram](https://senseible.earth/climate-intelligence/green-finance-ship-recycling-chattogram)
- [rooftop solar finance for factories in Bangladesh](https://senseible.earth/climate-intelligence/rooftop-solar-loan-factory-bangladesh)
- [green loan for a steel business in Johannesburg](https://senseible.earth/climate-intelligence/green-loan-steel-business-johannesburg)
- [green loans for steel MSMEs in Ludhiana](https://senseible.earth/climate-intelligence/green-loan-steel-msme-ludhiana-raipur)