Rawhide traders to get loans even with overdue from last year

Bangladesh Bank instructed all banks to provide loans and investment facilities to the rawhide traders even if they (the traders) have overdue from last year.

The facility will allow traders to take loans to purchase the skins of the sacrificed animals even with their existing unpaid loans on the occasion of the upcoming Eid-ul-Azha.

The directive was issued on Tuesday by the organisation's banking regulation and policy department. 

To get the loans, traders are required to store stock, equal to the amount overdue from 2020 in the warehouses of the concerned organisations and provide a down payment equal to 1/3 of the overdue amount to renew their loans for a maximum of three years.

After renewal, following the standard banking practices, the scheduled banks can provide loans equal to the predetermined quota amount for 2020 Eid-ul-Azha, based on banker-client relationships.

Furthermore, in favour of the borrowers, the banks cannot collect any type of compromised amount when giving loans for buying animal hides during 2021 Eid-ul-Azha.

This opportunity will be available until 31 August 2021, said Bangladesh Bank.

Due to the impact of Covid-19 and the existing problems in the leather industry, some of the loans disbursed to the leather traders last year to purchase skins of sacrificial animals remained unpaid. 

But Tuesday's directive will allow the traders to take loans this year, despite their existing loans.