Now relaxed loan repayment facility extended for NBFI clients

The Bangladesh Bank has extended special concessions on repaying term loans to borrowers from non-banking financial institutions (NBFI) after introducing the provision for scheduled banks on 18 December to curb default risks.

The provision now allows term loan takers from both banks and NBFIs to repay 50% of what is required between September and December within this period to avoid being classified as defaulters and allow their finances to run smoothly. 

The remainder of the repayable sum will have to be paid back within one year of maturity, a central bank notification said on Wednesday.

The provision also applies to Shariah-based fixed deposits.

As per the previous instructions of the Bangladesh Bank, the borrowers were required to pay 75% of their term loan instalments by December to avoid becoming defaulters.

Many factors have curbed cash flows for many retail and institutional borrowers, making it increasingly difficult for many small, medium and large loan takers to repay instalments in time, the central bank claimed.

To contain deterioration in the financial outlook of businesses and to ease the repayment process for borrowers facing risks of losses, the central bank has allowed the concessions, it said.

-TBS