Regulatory Alerts2018-05-30
Added · Updated
BRPD Circular No. 05: Avoidance of the increasing trend of rate of interest on existing loan accounts
BRPD Circular No. 05 prohibits scheduled banks in Bangladesh from increasing interest rates on existing loan accounts unless the loan sanction letter explicitly permits variable rates. For loans with variable rates, increases are capped at once per year, require a minimum three-month prior notice to the customer, and are limited to a maximum of 0.50 percent per adjustment for term loans and 1.00 percent for working capital and other loans. These directives are effective immediately and do not apply to new loan approvals, which remain subject to previous BRPD circulars.