Non-banks' borrowers won't be defaulters if they clear 50% of loans by Dec

Bangladesh Bank today said borrowers of non-bank financial institutions (NBFIs) would not become defaulters until December if they pay 50 per cent of their loans' instalment.

The central bank has taken the decision given the ongoing business slowdown brought on by the coronavirus pandemic.

Borrowers will have to pay the rest amount of the instalments within one year after completion of the repayment tenure of the loans.

NBFIs will not be allowed to transfer their unrealized interest or profit to their income segment during the given period mentioned by the central bank.

This means only the interest amount, which is recovered from clients, can be added to the income segment, the notice said.

A BB official said that a good number of clients in the NBFI sector was now facing a bad state of affairs due to the ongoing slowdown.

The latest instruction will help borrowers to get remedy from the crisis.