Pay 20% of loan instalments to avoid default zone: Bangladesh Bank
Bangladesh Bank today said that borrowers would be able to avoid default zone by repaying 20 per cent of their loan instalments till June.
The central bank has relaxed its loan classification policy given the ongoing business slowdown deriving from the latest spread of the coronavirus pandemic.
Borrowers will have to give the portion of their loan instalments by August this year, according to a central bank notice.
In March, BB provided a repayment deferral support for borrowers by extending three months to repay their loans based on the bank-customer relation.
This allowed clients to repay their overdue instalments by June.
An official of the Bangladesh Bank said that the latest instruction would extend the previous policy, asking clients to repay 20 per cent of their instalments.
The central bank mentioned that borrowers taking three categories of loans -- term, demand and continuous -- will be considered to enjoy the relaxed facility.
This means all borrowers in the banking sector would enjoy the new facility, except for loans given out through credit cards, said a managing director of a bank, wishing not to be named.
In March last year, the central bank declared a loan moratorium facility for the banking sector, which was effective throughout last year.
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