Restructured rates of interest on lending effective from 01 April 2024 as per following bands (SMART is 10.55%):

You are advised to comply with the following conditions while fixing interest rates against different credit facilities of your portfolios:

Notes:

1. Debt Management Department of Bangladesh Bank will disclose Six Months Moving Average Rate of Treasury Bill (SMART) for each month on the first working day of the following month in Bangladesh Bank’s website to be followed for the following month. Therefore, SMART for March 2024 as disclosed by Bangladesh Bank is 10.55% to be followed in April 2024. So, revised interest rate will be 10.55% + 2.00%/3.00% i.e. 12.55%/13.55% as applicable w.e.f. 01 April 2024. Likewise, SMART for April 2024 to be declared by Bangladesh Bank on 1^st working day of May 2024 will be followed in May 2024 and so on.
2. For disbursement of any fresh/new/renewed loan, the interest rate declared in the respective month will be followed. Whether the interest rate is fixed or variable in nature must be determined with the consent of the customer before granting the loan. However, for the application of interest rate in variable nature, the changes of interest rate will be effective every six months. For example, if interest rate is changed or new loan is disbursed on 01 October 2023/02 October 2023 & so on, the variable interest rate will become changeable on 01 April 2024/02 April 2024 & so on. Therefore, interest rate of loans changed from 01 to 31 October 2023 becomes changeable (eligible to change) from 01 to 30 April 2024.
3. All types of CMSME Loan and Personal Loan & Auto Loan under Consumer Credit are subject to Supervision Charge @ 1.00% maximum in addition to the above- mentioned Interest Rates. This Supervision Charge shall be realized / levied once in a year. No charges or interest shall be applied / levied on this supervision charge realized on annual basis i.e. no compounding of interest will be applicable on Supervision Charge. Further, this Supervision Charge shall be realized proportionately that is for settlement of loan within any time of the year, 1% supervision charge will be applicable for the proportionate period. BRPD Circular letter # 14 dated 18 March 2024 to be followed to impose & realize Supervision Charge.
4. Additional interest @1.50% shall be charged on all 'Temporary Excess over Limit (TEOL)' over the prevailing rates.
5. If any loan or loan installment in full or part thereof becomes overdue for any period, penal interest @ 1.50% shall be charged on entire amount of continuous / demand loan and overdue installment amount of term loan for that period.
6. Loans & advances under Stimulus Package / Special Funds of Bangladesh Bank / Government will be beyond the purview of this Circular and to be followed according to the relevant regulations of these Funds.
7. Borrowers/clients have to be informed regarding any changes in interest rates from time to time.
8. If any changes require on the payable installments of the borrower’s loan as a result of changes of the Interest Rates as above, the borrower must be informed before restructuring the installments.
9. Approval of the Board of Directors / Executive Committee will be required to effect exceptional interest rate below the above prescribed interest rate.
10. In case of any exception to lending interest rate other than prescribed interest rate, prior approval from Head Office to be obtained.
11. All other terms/conditions will be followed as per Bangladesh Bank BRPD Circular # 09 dated 19 June 2023.