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Onion import loans get cheaper

  • Published at 02:39 pm September 23rd, 2013
Onion import loans get cheaper

Onion importers will get loans at an interest not more than 12% as Bangladesh Bank impost the lending rate limit yesterday.

The rate takes immediate effect and will continue until the year end.

The central bank also relaxed the loan-margin ratio to make the import cheaper and said the banks are free to set the margin at minimum level based on relationship with their clients.

It relaxed the terms of financing onion imports to facilitate adequate supply of the essential commodity in the market, said a circular issued to the commercial banks.

It said price of the commodity recently witnessed volatility in the local market due to high price in the international market.

The commerce ministry earlier requested Bangladesh Bank to take steps to cut the interest rate to 10% and consider a relaxed margin ratio to help bringing down the prices ahead of Eid-ul-Azha and Durga Puja.

In a letter to the central bank, the ministry argued that the banks are now charging 18% to 20% interest on the loans and advances.