Export-oriented jute product manufacturers can now take loans from the Bangladesh Bank's $200 million green fund, said a recent circular.
Earlier, the BB set up the fund to provide low-cost financing to textile and leather industries from switching to environment-friendly manufacturing methods.
The move comes to help the export-oriented industries take advantage of the growing demand for green products in the Western world.
The interest rate on the loans from the Green Transformation Fund is six-month LIBOR plus 1 percent.
The jute product manufacturers will get loans for water conservation and management, waste management, resource efficiency and recycling, renewable energy and energy efficiency.