Tuesday, 19 October, 2021

NBFI borrowers get time to repay loans

  • Staff Correspondent
  • 20 July, 2021 12:00 AM
  • Print news
NBFI borrowers get time to repay loans

Bangladesh Bank extended the time of loan repayment for the borrowers of non-bank financial institutions (NBFIs) until August 31.

The decision was taken considering the shocks of the pandemic on the economics activities, the central bank said.

It said the NBFIs will not declare the borrowers defaulter if they pay 50 percent of the loan installment during this time.

 According to the directive, the remaining installment amount (till June 2021) of loan, advance and lease money of a client will be paid with the last installment of loan amount based on the relationship on the NBFIs and clients.

Over the past year, the customers of NBFIs did not repay loan installments under the deferment facility and defaulted on loans.

On 24 March, 2021, the central bank relaxed repayments of bank loans for its customers.

About a month later, the announcement of the repayment deferral facility has come for NBFI customers as well.

The BB extended such facility for the borrowers of banks in June this year as the pandemic situation got worse.

On 24 March this year, the central bank extended the time of exemption from repaying installments for the bank borrowers.

Then around a month later, a same kind of announcement was made for the NBFI borrowers.

The borrowers got the facilities based on the types of loans.

Bangladesh Bank relaxed the repayments of loans taken as the working capital to counter the pandemic impacts, extending the time until June 2022. However, for the facility, the borrowers are required to pay interests regularly.

The central bank also eased the repayments of term loans and demand loans.

The borrowers of demand loans will have time till December 2022 for the repayments.

In the case of term loans, a borrower was allowed to pay deferred installment facility till June 30 this year.

The term loan facility is available only on the basis of bank-customer relationship.