NBFIs to offer deferral for CMSME, agri loans in flood-hit areas
No additional interest, fees, or penalties — other than the regular interest on the delayed payment — will be charged
The Bangladesh Bank has recently instructed Non-bank Financial Institutions (NBFIs) to offer a three-month deferral on loan instalments for Cottage, Micro, Small, and Medium Enterprises (CMSMEs) and the agricultural sector in areas affected by recent floods.
The central bank's Department of Financial Institutions and Markets issued a circular in this regard today (20 October).
The circular stated that several districts in the country have been inundated due to recent flooding. As a result, it will be difficult for affected borrowers, especially in the agricultural and CMSME sectors, to repay or settle their loans on time.
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Therefore, for non-classified loans in flood-affected areas, as identified by the Ministry of Disaster Management and Relief, borrowers in the agricultural and CMSME sectors will be allowed to pay the loan instalments due between August 2024 and October 2024 within three months after the loan tenure expires.
Additionally, the loan tenure will be extended by three months. However, financial institutions must verify that the borrowers have been genuinely affected by the flood.
The circular also stated that no additional interest, fees, or penalties—other than the regular interest on the delayed payment—will be charged.
However, if any borrower does not wish to take advantage of this deferral, they may continue to repay the loan according to the previously agreed repayment schedule.
