In line with commercial banks’ decision, the non-bank financial institutions (NBFIs) will also offer loans at single digit rate.
Following a meeting with Bangladesh Bank Governor Fazle Kabir on Tuesday, NBFI top officials said that that they will adopt a borrowing rate of a maximum nine percent.
The NBFIs will adopt the decision in their boards within a week, but it may take a few months to fully implement it, Bangladesh Leasing and Finance Companies Association (BLFCA) Chairman Khalilur Rahman told the media.
NBFIs hope to collect funds at 6.5 percent interest as banks will be able to get at 6 percent, said Rahman, the managing director of National Housing Finance and Investment Ltd.
“We will go for a borrowing rate of 7 percent and lending rate of 9 percent,” he said.
NBFIs can go for a single-digit lending rate despite a higher borrowing rate as their spread is lesser than banks even though the deposit rate is higher, according to Deputy Governor Abu Hena Mohd Razee Hassan.
“The central bank has advised NBFIs to look for alternatives to collect funds. Since they go for long-term investments, so they should go for long-term funds,” he told the media.