Rescheduling deadline for loan defaulters extended

The central bank today extended rescheduling deadline for the loan defaulters until October 20.

Under the rescheduling policy, loan defaulters can make a 2 per cent down payment to avail a 9 per cent interest rate and 10 years, including one year’s grace period, to pay back their loans.

Earlier in August, the Bangladesh Bank said defaulters would get the facility till September 7 in line with the High Court order. But it extended the deadline once again as per order was given by the same court on August 29.

As per the policy, the borrowers, who will get the rescheduling facility under the policy, will not be allowed to get fresh loans from banks, according to a central bank circular sent out to all lenders today.  

The relaxed policy was made available in May to allow defaulters to clear their loans.

The BB will allow defaulters to reschedule their classified loans until the fresh date, a central bank official said.