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The interest rate on loans from non-bank financial institutions (NBFIs) has exceeded 15.5 per cent.
From now on, NBFIs will be able to charge a maximum of 5 per cent interest with the average rate (smart rate) of the six-month treasury bills, the Bangladesh Bank’s Financial Institutions and Markets Department said in a notification on Wednesday.
In case of deposits, the maximum corridor will be 2 per cent. The corridor rate on earlier loans and deposits has been reduced by 0.5 per cent. Even though the corridor narrowed, the smart rate increased.
The central bank said the interest rates on loans and deposits of NBFIs have been revised considering the existing monetary policy rates. In this case, interest or profit on deposits can be taken at a maximum of 2 per cent along with the average rate (smart rate) of monthly treasury bills.
In case of a loan, lease, or investment, a maximum of 5 per cent can be taken with the smart rate to determine the interest or profit.
The new rates will apply to the newly raised deposits and disbursed loans after the issuance of the notification, said the Bangladesh Bank. Apart from this, all other directives of the previous notification will remain unchanged.
Meanwhile, the reduction in the corridor rate is unlikely to reduce the interest rates on NBFI loans because the six-month moving average rate of treasury bills (smart rate) has increased due to inflation and other reasons.
Currently, the smart rate is 10.55 per cent. That is, from March, the interest rate on NBFI loans may increase to 15.55 per cent.
Despite the reduction in the corridor rate, customers will not get cheap loans due to the increase in the smart rate. Besides, the interest rate on deposits will stand at 12.55 per cent.
Messenger/Fameema
