Cinema owners must ensure proper use of low-cost loans
The central bank has issued a policy for the refinancing fund
Cinema owners will have to ensure proper utilisation of the low-interest loans they are getting under the Bangladesh Bank's Tk1,000 crore refinancing fund, says the policy of the scheme.
It states that banks must undertake on-the-spot inspections of customers' businesses or establishments to ensure proper utilisation of the loans.
The central bank's Department of Off-site Supervision (DOS) on Wednesday issued the policy for the refinancing fund to take the country's film industry forward.
Keep updated, follow The Business Standard's Google news channel
Within 15 days of every fourth month, customers have to submit reports to the DOS regarding the progress of business such as project implementation, business income and loan repayment.
Banks have to check the Credit Information Bureau's latest report on borrowers before giving loans. This means that customers will have to clarify whether they have any previous loans or, if they have, whether they are defaulters or not.
After releasing the first instalment of the loan taken from the fund, the proper use of the money has to be ensured within a period of one year.
Additional charges cannot be levied if a customer wants to make a full loan adjustment before maturity. The interest during the grace period will be distributed equally with all the instalments of the loan. Customers will be able to repay the loans with interest in 28 instalments.
The Bangladesh Bank issued a circular on 14 February setting up the refinancing fund in order to ensure healthy entertainment for the people across the country.
It is said that in the first phase, a loan of Tk500 crore will be given under this fund. If the loan is disbursed and recovered properly, the remaining Tk500 crore will be given in the second phase.
A cinema hall owner can borrow a maximum of Tk5 crore from this fund. The interest on the loan has been set at 5% for the metropolitan areas and 4.5% for other areas.
Cinema hall owners will have to apply to banks to get the loans by 31 March 2022.
The loan money can only be used for the construction of new cinemas, renovation of old cinema halls and import of equipment, machinery and technology for cinemas.
In addition, the cinema halls set up in shopping complexes will also get the loan facility from this fund.
