NBFIs loan classification relaxes

Sun Online Desk

20th April, 2021 07:01:23 printer

NBFIs loan classification relaxes

Bangladesh Bank (BB) on Tuesday issued a notification extending the policy relaxation of loan repayment to the Non Bank Financial Institutions (NBFIs) by their borrowers.

As result the borrowers of NBFIs would get three more months' time from March31, 2021 to June 30, 2021 to repay their due loan installments on the basis of lender-customer relationship because of the resurgence of the Covid-19.

According to the BB instruction, the borrower will not be declared as defaulter and his loan cannot be termed as classified if due monthly loan installment of this three month would pay within June 30 of this year.

At the same time the NBFIs cannot impose any other additional charge including penalty on due interest amount within this scheduled time. 

"We have relaxed the policy to help the businesses overcome the damaging effect of the second wave," said Md. Zulkar Nayen, general manager, Department of Financial Institutions and Markets (DFIM) of the central 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.

Earlier the BB announced such relaxation for the borrowers scheduled banks.

Since January last year banks have stopped classifying loans in the event of failure to repay of loan installments under instructions from the BB. Borrowers will be able to clear their installments on continuous, demand and term loans by June 30 instead of March 2021 on the basis of lenders (banks/NBFIs)-customer relationship, according to the notification.