BBN file photo
Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has almost doubled the limits for credit card and personal loans under consumer financing following rising trend of purchasing power of people, officials said.
The Bangladesh Bank (BB), the country’s central bank, has revised the limits after 13 years considering per capita income, they explained.
Under the revised regulations, maximum unsecured limit under credit card to a borrower (supplementary cards shall be considered part of the principal borrower) shall not exceed BDT 1.0 million. It was BDT 0.50 million earlier.
The banks may allow financing under the credit card scheme in excess of the limit of BDT 1.0 million provided the excess amount is secured against liquid securities, according to a notification, issued by the central bank, on Tuesday.
However, in no case the limit will be allowed to exceed BDT 2.50 million. It was BDT 2.0 billion earlier.
On the other hand, limits per person for such loans will be BDT 0.50 million instead of BDT 0.30 million earlier without any securities.
However, banks may lend higher amounts provided the loans are secured appropriately. But, in no case, the loan amount will be allowed to exceed BDT 2.0 million. It was BDT 1.0 million earlier.
“The loan secured against liquid securities shall however, be exempt from this limit,” the central bank said in its notification.
BBN/MS/ANS