Interest rate falling to single digit

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Golam Mowla
Published : 07:30, Feb 18, 2019 | Updated : 07:30, Feb 18, 2019

Commuters walk in front of the Bangladesh central bank building in Dhaka, Bangladesh, September 30, 2016. Picture taken September 30, 2016. REUTERS/File PhotoApart from state-owned Rupali Bank, almost all other banks are offering long term loans on a single digit interest rate. This also includes a dozen private commercial banks which are handing out single-digit loans.
To increase investment in the private sector, the business community had been demanding single-digit loan for some time.
As per the latest information of Bangladesh Bank, Agrani Bank disbursed long term loans along with short term ones at single digit interest rate.
But the banks disbursed loans at a double-digit interest rate in the consumer credit segment.
However, though state-owned specialized bank Basic Bank disbursed loan at single digit, they imposed double-digit interest on micro industries and home loans.
Specialised banks, Bangladesh Krishi and Rajshahi Krishi Unnayan Bank, imposed single digit loans on all sorts of loans.
A year ago in January 2018, the picture was dismal and at that time, all business enterprises had to pay double-digit interest rates. At that time, some banks even imposed more than 15 per cent interest.
Chairman of Association of Bankers Bangladesh, ABB, and Dhaka Bank top official Syed Mahbubur Rahman told Bangla Tribune, “We are trying collectively to bring down the interest rate and soon, all banks will bring down the rate to single digit.”
Earlier, the government took a policy decision to bring down the interest rate to a single digit to create an investment-friendly market, promote entrepreneurs and ensure more jobs.
Banks that previously gave double-digit loans now give loans at 9 per cent interest rate.
Banks providing credit card facilities have imposed two digit loans.
Officials, however, have dismissed the possibility of credit card interest rate falling to a single digit.

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