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2026-05-13

BRPD-1 Circular Letter No. 17: Interest/Profit Rate of Loan/Investment

The Bangladesh Bank’s Banking Regulation and Policy Department-1 amends Circular Letter No. 10/2024 to revise the additional interest rate charged on overdue loans and investments. The directive reduces the previously mandated 1.5% penalty rate to 0.5% on both the outstanding principal and overdue interest/profit amounts. This updated directive supersedes prior rates, remains binding on all scheduled banks, and will be incorporated into respective officers' manuals under Section 29(2)(P) of the Bangladesh Bank Order, 1991.

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Bangladesh Bank Main Office GPO, Dhaka-1000 Bangladesh. website: www.bb.org.bd Banking Regulation and Policy Department-1 13 January 2026 Circular Letter No. 17: Interest/Profit Rate of Loan/Investment ----------------- 30 Shrawan 1433 Subject: Amendment to the Directive on Interest/Profit Rate of Loan/Investment All Principal Officers of Scheduled Banks in Bangladesh Dear Sir,

  1. With reference to Circular Letter No. 10 dated 08 January 2024 regarding the revision of interest/profit rates for loans/investments, it is directed that the amendment to Circular Letter No. 10 dated 08 January 2024 be implemented.
  2. In accordance with Circular Letter No. 10/2024, a directive has been issued under Clause 3(M) regarding the revision of interest/profit rates for loans/investments: "In case any loan or investment is classified as overdue (Overdue) due to non-payment of interest/profit or principal, an additional interest/profit rate of 1.5% shall be charged on the outstanding principal amount of the overdue loan/investment and on the overdue interest/profit."
  3. Accordingly, considering the need for uniform application of banking laws and regulations, and to ensure consistency in implementation, a revised directive under Clause 3(M) of Circular Letter No. 10/2024 has been issued: "In case any loan or investment is classified as overdue (Overdue) due to non-payment of interest/profit or principal, an additional interest/profit rate of 0.5% shall be charged on the outstanding principal amount of the overdue loan/investment and on the overdue interest/profit."
  4. Consequently, other directives in Circular Letter No. 10/2024 shall remain unchanged, and this circular letter shall be incorporated into the respective principal officers' manuals.
  5. This directive shall be binding on all banks.
  6. This directive has been issued under Section 29(2)(P) of the Bangladesh Bank Order, 1991. Sincerely, (Md. Golam Rabbani Bhuiyan) Chief General Manager (Banking Regulation-1) Dtn: 9530252
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