BRPD Circular No. 06 : Loan Rescheduling

Website: www.bb.org.bd
Banking Regulation & Policy Department
Bangladesh Bank
Head Office
Dhaka

May 29, 2013
BRPD Circular No. 06 Date: ------------------------------ Jaistha 15, 1420 Chief Executives All Scheduled Banks in Bangladesh

Dear Sir,
Loan Rescheduling
Please refer to BRPD Circular No.15 dated September 23, 2012 on the captioned subject. In light of current credit conditions and the greater preponderance of longer term finance, following amendments have been brought into the circular:

1. Section 2.c) of the circular will be replaced as under :
   “02. c) Time limit for rescheduling Fixed Term Loan:
   The loan which is repayable within a specified time period under a prescribed repayment
   schedule is treated as Term Loan. In case of rescheduling of any classified Fixed Term Loan,
   following time-limit may be added with the expiry date/repayment date of last installment to determine the repayment schedule which will be started from the date of rescheduling. If the loan is rescheduled after the expiry date, the following time-limit will be applicable from the date of rescheduling:

Frequency Classified as
Sub-standard
Classified as
Doubtful
Classified as
Bad/Loss
First
Rescheduling
Maximum 36 (thirty six) months
Maximum 24 (twenty four) months
Maximum 24 (twenty four) months
Second
Rescheduling
Maximum 24 (twenty four) months
Maximum 18
(eighteen) months
Maximum 18 (eighteen) months
Third
Rescheduling
Maximum 12 (twelve) months
Maximum 12 (twelve) months
Maximum 12 (twelve) months
Conditions: During the rescheduled period all required principal and interest payments must be made. Rescheduled amount should be repaid in monthly/quarterly installments. If the amount of defaulted installments is equal to the amount of 6 monthly or 2 quarterly installments, the loan will be classified as Bad/Loss.”

2. Section 2.d) of the circular will be replaced as under :
   “02. d) Time limit for rescheduling for Short-term Agricultural and Micro￾Credit:
   In case of rescheduling of any classified Short-term Agricultural and Micro-Credit, 6 months may be added with following time-limit from the day after the expiry date/repayment date of last installment to determine the repayment schedule which will be started from the date of rescheduling. If the loan is rescheduled after the expiry date, the following time-limit will be applicable:
   First Rescheduling Repayment time limit for rescheduling should not exceed 2 (two) years. Second Rescheduling Maximum 1(one) year. Third Rescheduling Maximum 6(six) months. This circular will come into force with immediate effect and all other instructions in BRPD Circular No.15 dated September 23, 2012 will remain unchanged. Please acknowledge receipt. Yours sincerely, (Md. Anwarul Islam) Deputy General Manager Phone-9530094