BB specifies charges, fees for loans, lease of NBFIs

Staff Correspondent | Published: 22:07, Apr 03,2018 | Updated: 23:16, Apr 03,2018

 
 

Bangladesh Bank on Tuesday issued a number of instructions for all the non-bank financial institutions on setting fee, charge and commission that the NBFIs take against any loan and lease, asking the entities to put up the charts showing fees and charges in every branch.
The central bank circular issued to all the chief executives and managing directors of all the financial institutions stated that the instructions were issued with a view to protect customers’ interest and to unify the charges, fees and commissions among the banks.
Under the BB instruction, no charges could be imposed for reschedule, restructure and transfer of any loan or lease along with specification of all charges and fees in the loan sanction letter.
The financial institutions would be allowed to charge maximum Tk 200 to a customer for loan application, while the documentation, processing, CIB, stamp charge, legal and valuation fees must be set based on at actual cost.
Late fees or fine for delay payment of loan installment must not be more than 2 per cent of the applicable interest rate.
The financial institutional must limit the early settlement fees for any short of loan or lease within 2 per cent of the outstanding amount, while no fees or charge could be imposed for early settlement of loans for cottage or micro sectors.
No fees or charge, however, could be imposed on any customers in case of early settlement of loan or lease immediately after one month of an increase of interest rate or profit margin by the financial institutions.
In case of any decision to increase interest rate or profit margin, the financial institutions will have to make it confirmed that it has informed its customers before one month of any such move.
The BB circular also instructed that any financial institution would not be allowed to charge for balance confirmation certificate twice in a year and once for half-year basis.

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