Dhaka, Bangladesh
Borrowers getting 10pc rebate on bank interest

Borrowers getting 10pc rebate on bank interest

Bangladesh Bank issues circular to banks

News Report Good borrowers are going to get minimum 10 percent rebate on the total amount of bank interest or profit for each past 12 months in every September, as part of a reform the finance ministry has now launched. New Finance Minister AHM Mustafa Kamal has said, "There'll be not a single paisa of default loan henceforth." And this measure announced by the central bank is seen as part of that remedial measure for addressing the problem of much-talked-about non-performing loan or NPL. The last step, economist say, is connected with the rescheduling of defaulted loans and preventing such culture in the banking sector. In its directive the Bangladesh Bank asked the banks to provide minimum 10 per cent rebate on the total amount of interest or profit accrued to the good borrowers for last 12 months every September. "In the case of current or call or term loan, banks will have to provide minimum 10 per cent rebate to the good borrowers on their total amount of interest or profit for the last 12 months (from the last year's October 1 to September 30 of the current year)," according to a BB circular issued Thursday. It said good borrowers would be given the same incentives the following years if they retained their status. Besides, banks can also provide extended credit facilities as per the good borrower's requirements, the BB said. Though there is an instruction to ensure incentives for the good borrowers by proving rebate at a fixed rate, but it has been observed that good borrowers are not getting the benefit properly. So, the BB asked the banks to indentify the good borrowers in September every year and ensure incentives for them properly.

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