The Bangladesh Bank (BB) has issued new instructions regarding instalments of term (industrial) loans and housing loans after raising interest rates.
It stated that following the new method of calculating the bank loan interest, the increased amount of loan instalments is problematic for the customers.
The central bank said, there is a need to consider the matter of rescheduling the loan instalment without increasing the figure of loan each instalment.
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According to the circular, the adverse global economic situation, both smart and market-based interest rates are higher than the fixed interest rates before 1 July, 2023, and the amount of instalments payable by industrial enterprises and individual house construction borrowers has increased. In this situation, customers are facing problems.
To maintain the trend of industrialisation and export and to maintain the repayment capacity of borrowers with limited income, the BB instructed to consider the issue of rescheduling the existing term loan and housing loan instalments without increasing the instalment amount.
In this situation, the central bank has issued some instructions regarding the collection of instalments of term industrial loans and consumer loans disbursed before July 1, 2023.
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According to the instructions, the period required for the collection of instalments can be extended. Extension of time in case of such recovery shall not be treated as debt restructuring under BRPD Circular No. 16 / 2022.
