Housing loan rescheduling rules relaxed

Bangladesh Bank (BB) on Sunday issued revised guidelines for rescheduling housing loans, significantly easing previous time-bound restrictions to better support borrower repayment capacity.
According to a BB circular, the central bank aims to facilitate regular installment payments by offering more flexible repayment structures, reports BSS.
Previously, housing loans under Taka 100 crore were restricted to a maximum rescheduling period of six years. This rigid cap often resulted in rescheduled terms being shorter than the borrower's original remaining tenure, creating a spike in monthly financial obligations. By removing the fixed six-year limit and linking the extension to the remaining term, the central bank aims to lower the Equated Monthly Installment (EMI). This adjustment ensures that monthly payments remain within the borrower's actual cash-flow capacity, thereby reducing the risk of default.