Bangladesh Bank has capped the maximum interest rate at 7% for loans under a Tk20,000 crore pre-financing scheme designed to restart closed industrial and service sector enterprises.
At the same time, a six-month grace period facility has been granted following the disbursement of the loans.
During this grace period, no interest can be collected from the borrower.
Once the six-month grace period ends, interest collection must begin, covering the principal repayment along with the accrued interest from the first two quarters.
The central bank issued these directives in a circular on Thursday (September 17).
The circular noted that the term "Large Industry" used in previously issued relevant circulars and circular letters has now been replaced with the term "Industry."
It further stated that the interest rate at the bank level under this scheme will be a maximum of 4%.
In other words, banks will pay 4% interest to Bangladesh Bank against the pre-financing received.
Payment of interest will commence six months after receiving the pre-financing, which will include the accrued interest for the first two quarters.
At the customer level, including all other charges, the maximum interest rate charged under the scheme cannot exceed 7%.
Additionally, interest collection from the borrower must start six months after loan disbursement.
According to the revised guidelines, banks must pay interest to Bangladesh Bank on a quarterly basis after the grace period ends for the funds drawn under the pre-financing facility.
It added that applications for pre-financing can be made at any point within the scheme's three-year tenure, subject to the availability of funds.
Bangladesh Bank issued these directives under the powers conferred by Section 45 of the Bank Company Act, 1991, and they take effect immediately.
