Those unable to repay their loan installments by June 30 can now pay by August 31 later this year
Bangladesh Bank (BB) on Monday has decided to extend the deadline for bank borrowers to repay their loans, in light of the ongoing Covid-19 pandemic.
In a circular issued on the day, the central bank said that the measure of shifting the June 30 deadline was taken considering the negative impact of coronavirus on the country's economy.
Those unable to repay their loan installments by June 30 can now pay by August 31 later this year, but that will be on the basis of bank-client relation.
In this case, their loans would not be classified if 50% of their loans’ payable installment are paid, it said, adding that other policies will remain applicable in case of calculating the loans, lease, interest on advances and profits while no penalty interest or extra fee will be charged.
The working capital loans, whose repayment periods have already expired, will be treated as regular loans till June 30 of 2022 if the borrowers pay their unpaid interests on a quarterly basis, as per the BB notice.
The interest of the working capital loans of last year, the repayment periods of which have already expired, can be paid within June 2022 in six quarterly installments.
Borrowers of demand loans will be able to repay their loans in eight quarterly installments from March this year to December 2022.
The lenders cannot downgrade the loans if borrowers have paid their quarterly installments, the BB said.