Incentive to the Good Borrower

As per BRPD circular no. 06 dated March 19, 2015, BRPD circular letter no 16 dated 30^th December 2015 and BRPD circular letter no. 03 dated February 16, 2016.

A borrower will be treated as Good Borrower for incentives if he fulfill following criteria:

1.       Continuous Loan borrowers having consecutive 03 years unclassified-standard status and Demand Loan borrowers having consecutive three years timely adjustment record with unclassified-standard status and satisfactory transaction as per sanction in both cases.

2.       Term Loan borrowers having consecutive 03 years (excluding grace/ moratorium period) timely installment repayment with unclassified-standard status and satisfactory transaction as per sanction. Grace period has to be excluded for considering 03 years period for a term Loan.

3.       In all cases borrowers who do not have adversely classified loan in its own name or in the name of interest related concern with any bank or financial institution for last 03 years.

4.       In all cases borrowers do not have SMA loan status in its own name in last 03 years.

Transaction for the year [2015] and previous 02 years to be considered as consecutive three years.

Incentive to the Good Borrower:

Good borrower will get interest rebate in 4^th year based on their previous three years performance:

1.      In case of continuous loan subject to 3 consecutive years continuous adjustment of loan, Good Borrower will get 10% rebate on last (3^rd) year realized interest/profit.

2.      In case of Demand loan 10% rebate on 3^rd year realized interest from the account.

3.      In case of Term Loan 10% rebate on 3^rd year realized interest from the account

Subsequently, if client qualify for the good borrower they will get same benefit.

Note: Banks may also arrange yearly program to honor the good borrower.

Provisioning: Banks must keep sufficient provision for providing incentive to the client next year.

Date of effective: from 1st January 2016.