Bangladesh Bank has given loan repayment concessions to non-bank financial institutions as well. If a borrower pays 50 percent of the amount due in the October-December quarter of the current year, no default will be allowed. This facility can be given in case of regular loans till last September.
An instruction in this regard has been sent to financial institutions on Wednesday.
According to the circular of the central bank, the term loans of the financial institutions which were unclassified till September can no longer be written off if they pay at least 50 percent of the installments payable during October-December. The remaining outstanding installments are to be repaid in equal installments within one year after the expiry of the predetermined period of the existing loan.
However, on the basis of the financial institution-customer relationship, the installments can be rescheduled and collected as per the new schedule, taking into consideration the period of one year. In the light of the instructions, if the loan fails to pay, it will be covered as default.
No penalty interest or additional fee shall be levied for the extended period in respect of term loans availed through this circular. This facility can also be given in respect of term loans already shown as unclassified till September through rescheduling or restructuring.
The guidance further stated that cash flows of small, medium and large borrowers individuals and institutions have been adversely affected due to uncontrollable factors. In view of this, the collection of loan installments as per the existing repayment schedule is being disrupted in some cases. In the context described, this directive has been given to maintain the momentum of the ongoing economic activities and reduce the negative impact on the business by facilitating the repayment of the loans of the affected customers.
