Special loan repayment facility for flood victims

The central bank has given special facility to the farmers and CMSME entrepreneurs affected by the recent floods to repay the loan installments. Farmers and entrepreneurs in the affected areas will be able to pay the August installment after three months.

On Sunday (September 1), the Banking Regulations and Policy Department of Bangladesh Bank has issued a circular in this regard.

Borrowers affected by the recent floods have found it difficult to repay or adjust their loans, the circular said. In order to facilitate normal economic activities of the affected borrowers in such circumstances, to facilitate repayment or adjustment of existing unclassified (non-compensatory) short-term agriculture and CMSME loans as on July 1 of other flood-affected areas identified by the Ministry of Disaster Management and Relief, including Feni, Noakhali, Laxmipur, Comilla and Chittagong. It happened.

As per the instructions, term borrowers of short-term agriculture and CMSME sectors in flood-affected areas will be able to repay the loan installments for the month of August to October within three months of the expiry of the respective loan period.

In the new guidelines, it has been asked to extend the period of adjustment of the ongoing loans of the CMSME sector which are adjustable between August 2024 and October 2024. Besides, no penalty interest, additional interest, excess profit, late fee penalty (by whatever name called) other than regular interest shall be levied or imposed on late payment.

These instructions have been asked to be implemented immediately in the circular of the central bank.

Bandhan/Ciecha/Saa