Large defaulters to get up to 15 years to repay loans

The defaulters of large loans of Tk 1,000 crore or more will now be able to repay their loans over 15 years, including a two-year grace period, under a special loan rescheduling facility.

Earlier, the repayment tenure was 10 years.

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The Bangladesh Bank today issued a circular in this regard, saying that the facility can be extended based on the banker-customer relationship.

Officials of the central bank said that Bangladesh's exports, like those of other countries, are facing temporary headwinds due to the ongoing conflict in the Middle East.

Fuel shortages have disrupted production at export-oriented industries, weakening borrowers' repayment capacity.

At the same time, market-based interest rates have significantly increased borrowing costs amid a business slowdown, they added.

"As part of Bangladesh Bank's 18-month roadmap to reduce non-performing loans, the central bank has introduced this policy support for the first six months, until December 31, 2026."

The circular provides temporary additional time for borrowers, particularly large ones with loans of Tk 1,000 crore or more, to reschedule or restructure their loans, they added.

The BB circular also said that, in the case of special restructuring, banks may allow an additional tenure of up to four years beyond the previous tenure.

For borrowers with outstanding loans of less than Tk 1,000 crore, the repayment tenure will be 10 years, including a two-year grace period.

The special loan rescheduling and restructuring facility will also be available to borrowers who have previously received policy support under the 2025 circular or from the selection committee formed to provide restructuring support.

However, any grace period already enjoyed by such borrowers will be counted as part of the grace period allowed under the latest instruction. Their repayment tenure may then be extended accordingly.

For new applications submitted by September 30, special restructuring facilities can be provided for unclassified loans, including standard loans and special mention accounts.

Special rescheduling facilities, meanwhile, can be provided for adversely classified loans, including substandard, doubtful and bad/loss loans.