People are increasingly tilting towards electronic money or credit cards. In one year, credit card loan has risen by Tk. 230 crore. According to Bangladesh Bank financial stability report, until 31 December 2017, banks have distributed loan to the amount of Tk. 3670 crore among clients.
In 2016, this was Tk. 2440 crore. It’s believed that people prefer credit cards as they do not have to face the risk of carrying cash. On the other hand, specialists say that banks can earn by imposing hidden charges on the usage of cards, which is often not noticed.
Some banks are taking more than 30 per cent interest on cards.
Without any deposit, a client can be given credit limit of Tk. 10 lakh by a bank. Against enough liquid deposit, the credit limit can go up to Tk. 25 lakh.
Talking on the matter, Agrani Bank chairman, Dr. Zayed Bakht, says: “banks take extra interest on credit cards since the money is offered without a deposit; there are also hidden charges, which is not right.”
In addition to charging as high as 36 per cent interest, some banks are taking 27 to 28 types of fees against credit card usage.
According to Bangladesh Bank information, the number of credit card holders in the country has gone beyond 10 lakh.
Of the 57 banks in operation, 31 are giving credit card facilities to clients.
Meanwhile, Bangladesh Bank has sent show cause notice to 18 banks for charging excess interest against credit cards.
Bangladesh Bank’s financial stability report also states that car loans have fallen to half, to around Tk. 1930 crore, which was Tk. 2030 crore in 2016.
On the other hand, home loan has increased to Tk. 13990 crore which was Tk. 10900 crore in 2016.
While loan in the textile sector has increased, default has also seen a rise. The loan in this sector until 31 December, 2017, was Tk. 93 thousand which was Tk. 75800 crore in 2016.
The default loan of state banks has increased by 26.5 per cent in 2017 compared to 2016. In the private banks, loan has risen by 4.9 per cent.