Regulatory Alerts2025-06-03
Added
DFIM Circular Letter No. 13: Rescheduling/restructuring of housing loan/investment
The document establishes specific limits and procedures for the rescheduling or restructuring of housing loans by finance companies in Bangladesh. It sets maximum loan tenor extensions based on the installment number (current tenor plus 30%, 20%, or 10%) and caps the borrower's age at 70 years at final repayment. The rules mandate a maximum of three reschedulings for construction loans, require minimum six months of regular payments before further restructuring, and impose down payment requirements of 2%, 3%, and 4% for the first, second, and third reschedulings, respectively. Additionally, it prohibits rescheduling loans obtained through fraud, allows tenor extension for variable-rate loans without counting it as restructuring, and removes the need for Bangladesh Bank approval for these decisions.