Bangladesh Bank further relaxes loan repayment
Earlier, a circular issued on 5 July stated that the non-bank financial institutions can not default customers, if they pay half of the June instalment by 31 August
Bangladesh Bank has further relaxed repayment of loans by allowing the borrowers to make their due payments to non-bank financial institutions in more instalments, considering the impact of the Covid-19 pandemic.
A circular by the central bank's Department of Financial Institutions and Markets (DFIM) on Monday said non-bank financial institutions' borrowers will be able to repay the rest of their June instalment with the last instalment of their loan.
However, if any customer wants, they can pay the due in advance.
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Earlier, a circular issued on 5 July stated that the non-bank financial institutions can not default customers, if they pay half of the June instalment by 31 August. The remaining half of the instalment will have to be paid with the next instalment.
According to the DFIM circular sent to chief executives of financial institutions, loans, leases and advances cannot be classified if borrowers can repay at least 50% of their June instalments by 31 August, on the basis of the financial institution-customer relationship.
"In this case, the remainder of the instalment payable till June will be paid with the last instalment. Besides, other instalments have to be paid in time," it added.
"Businesses are facing downturns due to the [recently relaxed] nationwide lockdown as the Covid-19 situation deteriorated. This decision has been taken to reduce the pressure of the financial institutions' customers to repay the loan," said a senior DFIM official.
