Sunday, August 18, 2019 | ePaper

BB offers special policy for loan defaulters

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Staff Reporter :
Bangladesh Bank (BB) has rolled out a 'special' loan rescheduling policy allowing all the defaulters to pay off their loans with relaxed terms and conditions.
BB issued a circular in this regard on Thursday citing that defaulters will get 10 years, with a one-year grace period, to pay back their outstanding loans.
All the defaulters--small, big and large--will be entitled to get the facility on the basis
of banker-customer relationship.
The circular tilted, "special policy on loan rescheduling and onetime exit' also asked banks' to exempt all the previous interest against principal amount while regularizing loans of the defaulters.
Under the central bank's new policy, borrowers' loan accounts classified as bad/loss as on December 31, 2018, will be eligible for getting exit facility on the basis of banker-customer relationship.
Defaulters will need to make a down payment of maximum 2 percent of their outstanding loans, with 9.0 per cent interest rate, for regularising their loans.
Instalments realised from defaulters previously cannot be considered as a down payment and the interest rate will be charged from January this year.
The defaulters have to pay installments quarterly and failure to pay two consecutive installments would result in cancellation of the rescheduling and it would be turned into bad/loss account.
A loan defaulter will have to file application to his/her corresponding bank to get the facility. If the aforesaid period is elapsed, no application will be considered for processing, said the circular.
As of December last year, the amount of defaulted loans in the banking sector stood at Tk 93,911 crore -- 10.30 percent of the total outstanding loans, and there are over 2.66 lakh loan defaulters, according to BB data.

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