The Bangladesh Bank will cover 80% of the guarantee against defaulted loans of individual micro-account holders, who opened accounts with TK10-100, under its Tk500 crore refinancing scheme, in a bid to reduce the lenders' risks and boost the small-scale collateral-free loan disbursement amid the Covid-19 pandemic.
The central bank on Sunday issued a circular in this regard, in which it said the concerned lender had to pay the rest 20%.
To pay the guaranteed money, the Bangladesh Bank launched a credit guarantee scheme titled "Financial Service-Inclusion", the circular reads, adding that the scheme will cover the highest 30% of defaulted loans of particular participating financial institutions.
The lenders, who are interested in the scheme, must sign agreements with the central bank' credit guarantee scheme unit. The participating financial institutions having already the deals can also avail the facility.
The circular says the initial loan periods will be counted for the guarantee-facility. In case of delay in loan repayment, lenders have to pay delay fees for the guaranteed money.
Earlier, in September last year, the central bank formed a TK500 crore fund to facilitate borrowing for micro-account holders to help them survive in the pandemic. Borrowers availed the loans under the fund at a 7% interest rate for up to three years.