Default borrowers with over Tk1,000cr loans to get 15-year rescheduling facility

Defaulting borrowers with loans exceeding Tk1,000 crore will be eligible for loan rescheduling for up to 15 years, including a two-year grace period, under an extended policy support scheme introduced by the Bangladesh Bank.

The central bank extended the deadline for borrowers to avail themselves of the policy support facility until 30 September and issued a circular today (31 August) instructing all scheduled banks to comply with the new provisions.

Eligibility conditions

Borrowers whose loans remain unclassified, meaning they are not in default, by 30 September 2026 will be eligible for special restructuring facilities.

Those whose loans are classified as sub-standard, doubtful or bad/loss will be eligible for rescheduling facilities.

For applications under the facility, banks must complete the process by 31 December 2026 after receiving all required down payments, according to the circular.

Borrowers with loans below Tk1,000 crore will continue to be eligible for restructuring and rescheduling facilities for up to 10 years, including a two-year grace period.

Existing facilities can be extended

The latest circular also allows institutions that previously received policy support despite having loans exceeding Tk1,000 crore, either individually or as part of a group, to apply again for facilities of up to 15 years.

Therefore, a borrower with loans exceeding Tk1,000 crore that has already received a rescheduling facility for 10 or 12 years can apply again to extend the repayment period to up to 15 years, subject to the applicable conditions.

Under the previous circular, borrowers had until 30 June 2026 to apply for the facility, while the maximum rescheduling period was 10 years.