Borrowers of non-bank financial institutions (NBFIs) can now avail a flexible loan repayment facility similar to that being enjoyed by bank customers up till December this year, according to a Bangladesh Bank notice issued yesterday.

As per the notice, borrowers of NBFIs who are struggling to repay their loans can avail the relaxed repayment facility considering the recent resurgence of the coronavirus pandemic and flooding in northern and north-eastern parts of the country.

As such, borrowers will be able to avoid falling into the default loan category by repaying half of the loan payable for the April-December period.

Clients will have to pay half of the payable amount every quarter during the period mentioned by the central bank.

The relaxed facility will be provided to borrowers who are facing a crisis to pay back their instalments due to the pandemic.

However, businesses that currently have a weak cash-flow will not be allowed to get the support.

Borrowers can avoid falling into the default zone by repaying half of the loan payable for Apr-Dec

On the other hand, the NBFI-customer relationship can also be leveraged to extend the support.

Such conditions will not be applicable for flood-hit borrowers in the cottage, micro, small-and-medium enterprise, and agriculture sectors.

In addition, NBFIs will not be allowed to transfer any unrealized interest against loans enjoying the deferral support as income.

The central bank move comes after the Federation of Bangladesh Chambers of Commerce and Industry, the country's apex trade body, pushed for a relaxed loan classification policy till December. The banking regulator issued a separate notice to customers of banks on June 22, allowing them to enjoy the relaxed loan repayment facility.