Follow conditions of loan disbursement from incentive package: BB to banks

Bangladesh Bank has instructed all banks and NBFIs (Non-Bank Financial Institutions) to follow the conditions of loan disbursement under the financial incentive package announced by the government.

The Central Bank's Banking Regulation and Policy Department issued a circular in this regard on Thursday (June 25).

The circular has been sent to the Managing Directors and Chief Executives of all Scheduled Banks and Financial Institutions operating in Bangladesh.

The circular said, loans under the incentive package would mobilize and revive companies affected by coronavirus crisis.

A borrower will get incentive package loan only for one year. Borrowers with existing loans with banks will get a maximum 30 percent of their existing approved loan limit. New borrowers will get highest 30 percent of the loan limit that is fixed for the respective bank under the package.

The circular further states that no matter how a loan is disbursed by the banks, if it is disbursed within the package terms, a customer is entitled to interest, profit subsidy on the loan disbursed within the time limit.