Friday, 24 September, 2021

FIs borrowers can repay loans until Aug 31

FIs borrowers can repay loans until Aug 31

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Bangladesh Bank has rescheduled loan repayment for the borrowers of Financial Institutions (FIs) to August 31, 2021.

The earlier repayment schedule was June 30, 2021.

The central bank in a circular said the facility has been extended considering the impacts of coronavirus pandemic on the economy.

It said under the current situation, those who faced trouble in repaying loan installments by June 30, 2021 can now make their repayments until August 31 on the basis of the bank-client relation. In this case, the loans will not be classified, the BB circular said, adding that other policies will remain applicable in case of calculating the loans, lease, interest on advances and profits while no penalty interest or extra fee will be charged.

According to the circular, the borrowers  pay up to 50 percent of their loan, lease, advance within August 31, 2021. If repaid within the date, the FIs cannot classify the loans.

Besides, the borrowers will not be declared as defaulter and their loans cannot be termed as classified if they pay their remaining monthly installment  within August 31 this year.

At the same time, the non-bank financial institutions (NBFIs) cannot impose any other additional charges including penalty on pending interest amount on their customers within the scheduled time.

"We have relaxed the policy to help the businesses, considering the damaging effects of the second wave of coronavirus pandemic," said Md Zulkar Nayen, General Manager at the Department of Financial Institutions and Markets (DFIM), Bangladesh Bank.

The borrowers, particularly the good ones, might enjoy such relaxation, popularly known as deferral policy for loan classification, if the NBFIs concerned allowed the customers, the official added.