Loan margin raised for laptop, smartphone purchese

Staff Correspondent

13 July, 2021 12:00 AM printer

Loan margin raised for laptop, smartphone purchese

Bangladesh Bank has increased banks’ loan margin for digital device purchases considering its growing demand in the current situation.

The decision was also made to help in building tech-know-how human resources in the country, said a central bank directive on Monday.

Bangladesh Bank also said it also considered the rise of online educational activities during the pandemic, which led to the increased use of digital communication devices.

Almost all the educational institutions have resorted to online platforms to conduct academic activities as the physical classes remained closed since the pandemic broke out early last year.

The central bank, therefore, encourages banks to finance purchasing digital devices including computer, laptop, tab and mobile phone so the people both in rural and urban areas can avail such technology, it said.

Banking Regulation and Policy Department of Bangladesh Bank issued the circular titled “prudential regulations for consumer financing”.

It has asked the banks to follow loan margin ratio at 70:30 instead of the earlier 30:70 in disbursing consumer loans.

Under the new ratio, the banks will finance 70 percent of a product’s price and the clients will pay the remaining 30 percent.

The decision is expected to help low-income group people, students and teachers get bank loans to buy digital devices, the central bank officials concerned said.

Bangladesh Bank will also monitor the progress of implementation of the regulations and guidelines through its site inspection teams during routine inspection.

The central bank introduced the prudential regulations for consumer financing in 2004.