NBFIs’ borrowers get more time in loan repayment

Borrowers of non-bank financial institutions (NBFIs) to get more time in loans repayment till September 30, this year as normal business activities are hampering due to COVID-19.

Bangladesh Bank yesterday asked all the non-bank financial institutions (NBFIs) not to change classification of loans till September 30 this year for the borrowers’ failure to pay installments to help business people to combat the economic fallout of Covid-19.

On March 24, this year, the loan classification benefit was offered for six months, ending on June 30 this year.
“It has been decided to extend the benefit till September from June this year as it is still not possible for the borrowers to conduct normal business activities due to COVID-19,” said BB circular, issued on the day.
NBFIs cannot impose any penalty interest or additional fees on the loans and investment during this period, the notice says further.

The amount and number of installments will be rescheduled by considering the payable installments from January to September 30, this year, as deferred, according to the circular.

On June 15, this year, BB also asked banks not to downgrade any loan for the borrowers’ failure to pay installments in the January-September period this year.