Photo : Collected
Banks can now collect a 1% supervision charge on the personal and auto loans offered to the Cottage, Micro, Small, and Medium Enterprise (CMSME) and consumer financing sectors.
This charge can be imposed on the loan principal once a year for each customer.
The Bangladesh Bank issued the directive to the management of all scheduled banks as it noticed several banks calculating charges in various ways, leading to collecting excessive money from customers.
In the directive, the central bank said the supervision charge can be collected only once a year, and no compound interest or additional charges can be imposed on this charge.
The circular specified that the charge calculation would be based on the principal amount for term loans. It will be calculated after the customer pays the monthly, quarterly, or half-yearly loan instalments.
For working capital loans, the supervision charge must be calculated based on the daily average outstanding amount, and no penalties or interest can be added to this charge.
"Banks have been charging money from customers in various ways using the term supervision charge. The circular clarifies that this charge will be imposed only once a year and will only be based on the principal amount of the loan," said a central bank official.
"For example, if an individual has a principal loan amount of Tk 50,000, and they pay an installment of Tk 500, the subsequent installment charge will be calculated at Tk49,500," he clarified.
Messenger/Disha
