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Bangladesh Bank unveils SMART-derived interest for Jan
Bangladesh Bank informed this rate at the beginning of every month.
The consumer loan (retail loan) receivers will have to pay the higher 13 percent interest starting from the new year, while other borrowers have to pay almost 12 percent, at 11.89 percent, in interest to the banks.
Bangladesh Bank (BB) on Sunday announced the interest rates for January in accordance with the 'SMART' method it introduced since July..
The method on which the loan interest rate is now determined is known as 'SMART' or 'Six Month Moving Average Rate of Treasury Bills'. Bangladesh Bank informed this rate at the beginning of every month.
The six-month average interest rate (smart rate) on 182-day treasury bills was 7.10 percent in July this year, 7.14 percent in August 7.20 percent in September, 7.43 percent in October, 7.72 percent in November, and lastly in December smart rate increased to 8.14 percent.
According to the rules of the BB, banks can give loans in January by adding margin or interest at a maximum rate of 3.75 percent with the 'smart' rate of December. On the other hand, non-banking financial institutions can add margin at the rate of 5.75 percent.