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2026-02-08

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BRPD-1 Circular No. 04: Rescheduling of Housing Finance

This circular amends the maximum repayment period for rescheduled housing loans to extend up to the loan's remaining term plus 30% for the first rescheduling, plus 20% for the second, and the remaining term for the third and fourth reschedulings, including a grace period of up to six months. It mandates that the borrower's age at the time of the final installment must not exceed 65 years and requires banks to verify previous rescheduling history if acquiring loans from other institutions. All other provisions of BRPD Circular No. 16/2022 regarding down payments and documentation remain fully applicable.

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Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh Website: www.bb.org.bd Banking Regulation and Policy Department-1 08 February 2026 BRPD-1 Circular No. 04 Date: -------------------- 25 Magh 1432 Managing Director/Chief Executive Officer All Scheduled Banks Operating in Bangladesh Dear Sir, Regarding Rescheduling of Housing Loans

  1. Reference is drawn to your attention to BRPD Circular No. 16 dated 18 July 2022 on the above subject.

  2. In accordance with the instructions contained in Section 4(2)(a) of BRPD Circular No. 16/2022, the maximum repayment period for rescheduling of term loans of less than 100 crore Taka has been fixed at a maximum of 6 (six) years after rescheduling. Consequently, under the existing policy, if housing loans need to be rescheduled, the time limit for repayment after rescheduling is likely to be less than the loan's current remaining term.

  3. In this context, to maintain the repayment capacity of customers of rescheduled housing loans and to encourage regular repayment of installments of rescheduled loans, the following instructions are issued:

(1) Considering the customer's cash flow projection, the maximum time limit for repayment after rescheduling, including a grace period of up to 6 (six) months, shall be as follows:

Sequence of ReschedulingMaximum Term
1stCurrent remaining term of the loan + 30% of it
2ndCurrent remaining term of the loan + 20% of it
3rd and 4thCurrent remaining term of the loan

However, in such rescheduling, the approved maximum repayment time limit shall not exceed the time limit provided at the time of the original loan approval under any circumstances.

(2) In taking decisions regarding loan rescheduling, it must be ensured that the maximum age of the entire loan customer is within 65 years. The date of the final installment payment shall in no case exceed the customer's age of 65 years.

(3) In the case of acquiring rescheduled housing loans from any other bank or finance company, the sequence of previous rescheduling shall apply, and a declaration letter to this effect must be collected from the customer.

(4) Prior to loan rescheduling, it must be ensured that all other applicable conditions are met along with the relevant documentation of the original loan approval.

  1. Furthermore, in addition to determining down payments in housing loan rescheduling, all other instructions issued by Bangladesh Bank under BRPD Circular No. 16/2022 and its subsequent orders shall be complied with as usual.

  2. These instructions are issued under the powers conferred by Section 49(1)(c) of the Bank Company Act, 1991, and shall come into force immediately.

Yours faithfully, (Md. Bayezid Sarker) Director (BRPD) Phone: 9530252

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