Regulatory Alerts2024-04-08
Added · Updated
BRPD Circular Letter No. 17: Charging Interest and Repayment Procedure of Term Loan
Bangladesh Bank has issued instructions for the imposition and collection of interest on term industrial loans and house finance loans sanctioned before July 1, 2023. To support industrialization, exports, and borrower repayment capacity, banks must collect installments at the pre-July 1, 2023 interest rate, keeping the installment amount unchanged. Any additional interest calculated under the SMART-based rate system must be transferred to a separate interest-free blocked account, to be collected later by extending the loan tenure. This facility applies only to unclassified loan accounts as of April 1, 2024, and does not constitute loan restructuring under BRPD Circular No. 16/2022.
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