Banks will get a 4.5% subsidy on the loan that they are giving to the Covid-19 affected businesses at 9% interest from the Tk30,000 crore incentive package.
The Bangladesh Bank, in a circular issued on Sunday, informed about this decision to give banks more time to apply for the subsidy.
Banks will have to apply to the Accounts and Budgeting Department of the Bangladesh Bank at the end of every quarter to get the subsidy within 12 working days after that.
Earlier banks had to apply within 10 days.
Association of Bankers Bangladesh Chairman Ali Reza Iftekhar told The Business Standard: "We will get around 15 days from now."
"When the incentive package policy was published in April this year, the bankers asked for 10 working days, not 10 days. The reason is there can be public a holiday within the 10 days which can squeeze the number of working days. As it is 12 working days now, the banks will benefit."
The incentive package policy states that industry and service sector organisations affected by the Covid-19 will get a loan from the package.
However, defaulters and those who have rescheduled loans three times will not get this facility. And, the loan can be used as working capital but not for repayment.
Also, this loan cannot be used for starting a new business or expanding an ongoing one either.
If it is not repaid on time, the recipients will have to pay 9% interest.
Also, the loan can be classified if the instalment is not paid on time.
The interest rate on the loan will be 9%. But the recipients will have to pay a 4.5% interest, and the government will subsidise the remaining 4.5% for the banks from the incentive package.