Installments for industrial, housing loans ease

Bangladesh Bank (BB) on Tuesday issued a circular easing installments on industrial term loans and housing finance.
The central bank ordered the banks not to raise the installment amounts for industrial term loans and home loans even as the market-based interest rate has increased in recent times.
The period required for collection of installments may be extended, too.
In the circular, the Bangladesh Bank asked all managing directors of scheduled banks to comply with the instructions.
Customers who took industrial term loans and house finance before July  2023 will enjoy the facility. i.e., the installments will remain exactly the same as it was before July 01, 2023.
However, borrowers who have been identified as defaulters as of 31st March 2024 will not be eligible for the facility.
The circular reads: "The customers are facing problems in paying the installments due to the increase in the amount of installments payable by the borrowers of industrial establishments and individual house-construction loans following interest rate hikes."
It also says there is a need to consider rescheduling existing term industrial loans and housing loans without increasing the installment amount in order to maintain the trend of industrialisation and to maintain the repayment capacity of borrowers with limited income.
In respect of loans taken by salaried employees against their salary, "the Bank may at its sole discretion decide on the repayment of the loan within the period of retirement from service of the said customer."
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