Reschedule of Loan/ Investment

BRPD Circular No-15 on Master Circular on Loan Rescheduling dated Sep-23, 2012

     Reschedule also known as prolongation or ever greening

Reschedule can be done 3 times.

1. Continuous loan—has expiry date and limit but no payment schedule, (One year revolving basis)eg Bai Muajjal, Murabaha, MPI, Bai salam ( Conventional--CC, OD,)

Continuous loan Time limit for reschedule :

Time	Sub-standard (3-9 months) Provision 20%	Classified (9-12 months) Provision 50%	BL (beyond 12 months) Provision 100%	Down Payment ( treated as term loan after reschedule)
1 st	18 month from reschedule date	12 month from reschedule date	12 month from reschedule date	15% (Overdue upto 1 crore) 10%  for above 1 crore to 5 crore ( but not less than 15 lac 5% for above 5 crore ( but not less than 50 lac)
2nd	12 month from reschedule date	9 month from reschedule date	9 month from reschedule date
3rd	6 month from reschedule date	6 month from reschedule date	6 month from reschedule date

2. Demand Loan:  payable after demand from bank and has expiry date, eg, Murabaha General LC, MDB( Inland), Bai-sarf(FDB), PAD, Bai Muajjal bb bills  (Forced LIM for Conventional Bank)

Demand loan time limit for reschedule

Time	Sub-standard Provision 20%	Classified Provision 50%	BL Provision 100%	Down Payment ( treated as term loan after reschedule) same as continuous loan
1 st	12 month from reschedule date	9 month from reschedule date	9 month from reschedule date	15% (Overdue upto 1 crore) 10%  for above 1 crore to 5 crore ( but not less than 15 lac 5% for above 5 crore ( but not less than 50 lac)
2nd	09 month from reschedule date	6 month from reschedule date	6 month from reschedule date
3rd	6 month from reschedule date	6 month from reschedule date	6 month from reschedule date

 

3. Fixed Term loan: Payable by payment schedule within fixed time limit, eg, HPSM, HDS,( SHDS)

                                                Time limit for reschedule for reschedule

Time	Sub-standard Provision 20%	Classified Provision 50%	BL Provision 100%	Down Payment
1 st	24 month from reschedule date	18 month from reschedule date	18 month from reschedule date	Cash Payment 15% of overdue installment or 10% total outstanding whichever is less for 1st time
2nd	18 month from reschedule date	12 month from reschedule date	12 month from reschedule date	Cash Payment of 30% of overdue installment or 20% of total outstanding whichever is less for 2nd  time
3rd	12 month from reschedule date	9 month from reschedule date	9 month from reschedule date	Cash Payment of 50% of overdue installment or 30% of total outstanding whichever is less for 3rd   time

4. Short term agriculture and Micro credit: loan defined by ACFID( Agricultural credit and financial Inclusion Department of B Bank), Credit in the agricultural sector repayable within 12 (twelve)  and repayable within 12 months irrespective of names, eg, RDS, Non Agricultural Credit, Self- reliant credit, Weavers Credit, bank’s individual projects credit.

        Provision: 5% for SS and DF, 100% for BL

Time	Time limit	Down Payment ( same as Fixed Term Loan)
1 st	Highest 2 years from date of rescheduling	Cash Payment 15% of overdue installment or 10% total outstanding whichever is less for 1st time
2nd	Highest 1 years from date of rescheduling	Cash Payment of 30% of overdue installment or 20% of total outstanding whichever is less for 2nd  time
3rd	Highest 6 months from date of rescheduling	Cash Payment of 50% of overdue installment or 30% of total outstanding whichever is less for 3rd   time

Base for provision: Provision must be kept on higher amount of the following two bases:

1. The outstanding balance of the investment – (the amount of profit suspense + the value of eligible collateral) or

2. 15 % of the outstanding balance of the investment

Eligible Collateral:
100%	(a)  Deposit under lien against investment, (b)  Value of Govt bond/savings certificate under lien,  (c)  Value of guarantee by govt of Bangladesh,     (d)  Value of gold pledged with the bank,
50%	(a)Market value of easily convertible commodities kept under bank control (b) land and buildings mortgaged with the bank (c) average market value of share  for last 6 months or face value whichever is less