BB relaxes loan repayment policy

Staff Correspondent

21 April, 2021 12:00 AM printer

Bangladesh Bank (BB) has relaxed the policy of loan repayment by allowing the borrowers to make their due payments to Non Bank Financial Institutions (NBFIs) until June 30, 2021.

The borrowers of NBFIs would get three more months from March 31, 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, said the central bank circular on Tuesday.

According to the BB instruction, the borrower will not be declared as defaulter and his loan cannot be termed as classified if borrowers pay their due monthly loan installment within June 30 of this year. At the same time the NBFIs cannot impose any other additional charge including penalty on pending interest amount on their customers within this scheduled time. 

"We have relaxed the policy to help the businesses considering the damaging effect of the second wave of corona," said BB Department of Financial Institutions and Markets (DFIM) General Manager Md Zulkar Nayen.

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 central bank announced such relaxation for the borrowers of 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.