Dhaka, March 15 -- Bangladesh Bank has raised the maximum loan limit against credit cards to Tk 4 million under a new policy aimed at expanding card-based financial services.

The central bank issued the directive on Sunday, saying the interest rate on such loans will be capped at 25 percent.

Currently, borrowers can take up to Tk 2.5 million in loans against a credit card with collateral, while the limit for unsecured loans stands at Tk 1 million.

Under the revised guidelines, the unsecured loan limit has been increased to Tk 2 million, while the limit for loans backed by collateral has been doubled to Tk 4 million.

Credit card holders will also be able to withdraw up to 50 percent of their total credit limit in cash.

The central ban...