Bangladesh Bank raises credit card, personal loan limits
05 Apr 2017, 22:08
Dhaka: Bangladesh Bank (BB) has re-fixed the ceilings of credit cards and personal loans under consumer financing to match the rise in people's purchasing power.
"The maximum unsecured limit under credit card to a borrower (supplementary cards shall be considered part of the principal borrower) shall not exceed Taka 10 (Ten) Lakh," said a BB circular issued on Monday.
Earlier, the limit was 5 (Five) lakh.
The banks may allow financing under the credit card scheme in excess of the limit of Taka 10 (Ten) lakh provided the excess amount is secured against liquid securities, the circular added.
However, in no case the limit will be allowed to exceed Taka 25 (twenty five) lakh.
"In case of foreign currency cards, cards can be issued if repayment is made against respective foreign currency account or against lien of foreign currency quota allocated to Bangladeshi nationals by Bangladesh Bank from time to time," BB said in the circular.
On the other hand, limits per person for personal loans will be Taka 5 lakh instead of Taka 3 lakh without any securities.
"Limits per person for such loans will be Taka 5 (five) lakh without any securities. However, banks may lend higher amounts provided the loans are secured appropriately. But, in no case, the loan amount will be allowed to exceed Taka 20 (twenty) lakh. The loan secured against liquid securities shall, however, be exempt from this limit,'' according to the BB circular.
BB said the consumer product market in Bangladesh has been growing rapidly over the last few years and the rising per capita income has enabled growth in consumer spending.