Credit card loan ceiling increased to Tk 2.5 million
Staff Correspondent, bdnews24.com
Published: 2017-04-05 11:59:06.0 BdST Updated: 2017-04-05 15:21:19.0 BdST
The Bangladesh Bank has raised ceilings of loans disbursed against credit cards and personal loans.
According to the revised regulations, banks can now disburse up to Tk 1 million, up from Tk 500,000, in loans against unsecured limits on credit card.
Banks will be allowed to disburse up to Tk 2.5 million in loans under credit card schemes, provided the amount in excess of Tk 1 million is secured against liquid securities, says Monday's circular issued by BB's Banking Regulation and Policy Department.
The central bank has also revised the regulations on personal loans. Banks can give up to Tk 500,000, up from the previous Tk 300,000 in loans without any securities.
Against liquid securities, the ceiling for personal loans, including those for purchasing consumer durables has been increased to Tk 2 million from Tk 1 million.
The last time Bangladesh Bank revised the ceilings of these loans were in 2004.
Central bank officials say the move comes amid increased demand for personal and credit card loans as well to help banks invest the excess liquidity.
Credit card loans carry higher interest rates than other bank loans.
Against the average single-digit lending rate, credit card loans cost between 12 percent and 30 percent interest.
Any unauthorised use or reproduction of bdnews24.com content for commercial purposes is strictly prohibited and constitutes copyright infringement liable to legal action.
- Businesses' anti-VAT law stance to misappropriate people's money: NBR
- Commerce Minister Tofail hints at 'conspiracy' behind Dollar gaining against Taka
- Flash floods will not drive up rice prices, says food minister
- Banks asked not to take loan instalments from farmers in Haor areas
- IFC eager to invest in agriculture
- World Bank Group, China-led AIIB agree to deepen cooperation
- Akbar Ali Khan sees no sign of good governance in near future
- India 'relaxes' loan conditions for Bangladesh, Finance Minister Muhith says
- Muhith expects 7.5 percent growth in 2016-17 fiscal
- Bangladesh relies on BIMSTEC as SAARC fails: Gowher Rizvi
- Suspicion over claim against Dhaka University teacher over use of 'indecent' photos
- Bangla film star Shakib Khan boycotted indefinitely
- Bangladesh prodded to 'reposition’ itself to improve business climate
- New VAT law: Heated exchange between Muhith, FBCCI
- Sehri and iftar timings for the coming Ramadan
- Mashrafe flying back to Bangladesh from England as wife falls sick
- Steps will be taken if neglect found in haor dam construction: PM
- Bangladesh actor Shakib Khan apologises to film fraternity after boycott
- Bangladesh is now free of formalin in food, says commerce minister
- BGB recovers more than 1.2 million Yaba tablets in Teknaf