The government has funded Tk 1.0 billion to provide wages and festival allowances for jute mill workers, officials said.
The textiles and jute ministry released the non-development loan for the Bangladesh Jute Mills Corporation (BJMC).
The tenure of the loan repayment will be 20 years, including five years' grace period.
The loan has to be repaid in instalments after every six months with a 5.0 per cent interest rate, according to an official document of the ministry.
Non-development loans are usually used only to pay wages and allowances.
Earlier, the state entity wrote to the ministry, seeking funds for the purpose.
"A letter was also sent to finance ministry in this regard," a senior BJMC official told the FE.
The funds were disbursed last week, he mentioned.
"The mills under the BJMC are limping for lack of necessary funds. The employees of the state-run mills are in trouble for the reason," he added.
At present, the BJMC is the biggest employer in the industrial sector of the country.
It provides direct employment to about 70,000 workers and 5,500 officers and staffers supporting the livelihood of around 6.0 million farm families.
Official data showed more than 50 millions are either directly or indirectly involved in jute industry.
In July 2013, the government directed the BJMC to provide its workers with a 20 per cent dearness allowance from its own funds.
A condition was also attached that the BJMC would not seek funds from the government for the purpose.
BJMC sources said 90 per cent workers in the industry are permanent staff members.