BB relaxes loan rescheduling rules for SMEs
The central bank yesterday directed all non-bank financial institutions to relax rescheduling rules and terms for repayment for small and medium enterprises and farm sector affected by political heat.
The facility, which will remain valid until June 30 next year, will allow non-banks to reschedule loans without down payment, Bangladesh Bank said in a notice.
But the privileges are subject to approval from the central bank.
“This is indeed a good move, a win-win situation for both the lenders and the clients,” said Mafizuddin Sarker, managing director of BD Finance, a non-bank financial institution.
Sarker opposed the condition that approval was mandatory, saying “it will delay matters”. “December 31 is our year-ending. If any financial institution wants to take up on the rescheduling facility, many of them will probably fail to use it with just one day in hand this year.”
At present, lenders can reschedule a client's loan by taking 15 percent down payment for the first rescheduling, 30 percent for the second and 50 percent for the third. To do so, the lenders do not need to take approval from the central bank.