Bangladesh Bank has extended the deadline for special rescheduling, restructuring, and one-time exit facilities for defaulted loans, allowing borrowers to avail themselves of these benefits with just a 2 percent down payment. Under the new directive, loans that become classified up to November 30 will be eligible, offering borrowers up to 10 years for repayment under special consideration.

Previously, a circular issued in September permitted special rescheduling only for loans defaulted up to June. The central bank sent the updated instructions to all commercial banks on Tuesday.

According to the circular, defaulted loans can now be rescheduled for a maximum of 10 years, including a two-year grace period, based on the banker–customer relationship and the loan amount. For regular restructuring, banks may extend the repayment period by up to two additional years on similar grounds. Borrowers receiving a one-time exit facility under special consideration will be granted an extra year beyond the originally approved duration.

Loan recovery must be carried out on a monthly or quarterly basis according to the banker–customer arrangement. The annual installment, however, cannot be less than 20 percent of the total outstanding loan.

Until full repayment, the loans must remain classified under the SMA (Special Mention Account) category, and banks must maintain required provisions. Provisions cannot be transferred to income without actual recovery. Additionally, no new loan facilities may be extended to these borrowers during the period.