Regulatory Alerts2017-10-30
Added · Updated
SMESPD Circular Letter No. 03: Allowing Grace Period against Short, Medium & Long Term Loan in favor of Cottage, Micro & Small Entrepreneurs
The document mandates that all scheduled banks and non-bank financial institutions in Bangladesh must provide grace periods for loans extended to cottage, micro, and small entrepreneurs, with a specific focus on women entrepreneurs. For working capital loans, banks must continue to approve loans based on business needs, while for short-term loans, a grace period of three months is required, and for medium and long-term loans, grace periods of three or six months must be provided. These grace periods are considered additional to the loan tenure and must be granted based on the joint agreement between the banker and the customer.