Micro Finance Institutions (MFIs) have been asked not to take loan installments from the people of the flood-hit areas for next two months.
Micro-credit Regulatory Authority (MRA) asked the MFIs to stop their recovery drive of loan installments for the next two months from the flood-affected clients, considering the damage caused by flooding, financial condition of the clients and their capacity for loan repayment, said a circular the authority issued yesterday.
It also asked to provide new loans during the natural disaster with rescheduling facilities against the running loans, said the circular with immediate effect.
MFIs have also been asked to allow withdrawal of savings despite having loans and to provide emergency goods to their affected clients from the emergency fund of the institution, according to the circular.
They are required to submit detailed expense report in case of using surplus money after taking post approval.
MFIs have been advised to inform the authority within October 31 this year about the actions taken.
The circular issued in the wake of recent floods in 17 districts including Kurigram, Nilphamari, Lalmonirhat, Gaibandha, Rangpur, Bogra, Sirajganj, Tangail, Jamalpur, Dhaka, Manikganj, Munshiganj, Faridpur, Rajbari, Netrokona, Sylhet and Sunamganj.
As the economic activities have become thin due to the recent flooding, the earning of the flood-hit people is also affected, said the circular.
