The Bangladesh Bank has extended the repayment period for loans with non-bank financial institutions (NBFIs), along with a large interest waiver facility, to 31 July for mitigating the debt obligations of the borrowers.
A circular in this regard was issued on Thursday by the central bank's Department of Financial Institutions and Markets which said a review of applications had shown that many NBFI customers had sought loan adjustments on their classified loans as they could not submit the application by the 30 April deadline for the one-time exit policy.
Amid this situation, the deadline for the exit facility has been extended in order to recover the defaulted loans and improve the liquidity of NBFIs.
To get exit facility, borrowers must submit their applications within the stipulated time and provide a down payment of 2% on the latest loan statement.
The applications will be disposed of by 30 September.
According to the circular, defaulting NBFI borrowers will get a maximum of 50% interest waiver, on the decision of the NBFI's board of directors, on one-time or maximum one-year repayment of the loan.
Apart from this, unappropriated interest or any other penalty, charge or fee may be waived.
It further added that this benefit will not be available in case of loans taken through forgery, any kind of fraud or irregularity
Financial institutions will be able to charge "Cost of Fund" interest (profit in case of Islamic Shariah compliant financing) on the amount recoverable from the day of the loan disbursement till the day of loan adjustment or full recovery.
This loan will be considered classified or defaulted until fully repaid