NBFI borrowers can defer repayments till June

Borrowers of non-bank financial institutions (NBFIs) will get a fresh repayment deferral support of three months till June 30 this year.

Bangladesh Bank (BB) yesterday said such borrowers who were facing trouble in paying instalments during the Covid-19 pandemic would be eligible.

The NBFIs' clients also enjoyed a loan moratorium facility throughout last year.

The central bank extended the loan moratorium facility due to the second wave of the coronavirus pandemic, said a BB official who was engaged on the issue.

A good number of clients have been in dire straits due to the recent spread of the virus, which has forced the government to impose strict restrictions on movement to keep the pandemic at bay.

The NBFIs will not be allowed to impose any penal interest, extra fee, commission or charge.

The central bank asked the NBFIs to bring the directive into immediate effect, according to a BB notice.

Around a month back, the BB enabled a fresh repayment deferral support for the borrowers of banks for three months, albeit subject to the bank-customer relations.

In a circular on March 24, it said banks would have to take this support into consideration for clients who were unable to pay their instalments on time.

Borrowers were to start paying the instalments from the second quarter.

In March last year, the central bank declared a loan moratorium facility for the banking sector, which stayed in effect throughout last year.

The same policy was later issued for the NBFIs.