Bangladesh Bank raises credit card loan limit to Tk 40 lakh

Bangladesh Bank has issued a new policy regarding credit cards. Under the new regulations, the maximum loan limit for credit cards has been increased to Tk 40 lakh, up from the previous limit of Tk 20 lakh. The maximum interest rate on such loans has been set at 25 per cent. The new policy was issued on Sunday.

According to the new policy, banks can provide unsecured loans of up to Tk 20 lakh against credit cards and secured loans of up to Tk 40 lakh. Cardholders can withdraw up to 50 per cent of their total credit limit as cash.

The policy states that interest will only be charged on the outstanding amount, and interest-free facilities will not apply to cash withdrawals. Additionally, no fees or charges can be imposed before card activation. In case of delayed bill payment, a late fee can only be charged once.

For customer protection, guidelines have been issued ensuring a 24-hour helpline for lost or stolen cards. Mental or physical harassment, threats, or violation of family members' privacy during debt collection are prohibited.

Applicants must be at least 18 years old to obtain a credit card. Students aged 16 can use supplementary cards as dependents on the primary cardholder. Applicants must have an e-TIN certificate and a clean CIB report.

Bangladesh Bank stated that the objective of this policy is to maintain financial stability and foster a transparent cashless transaction environment. The previous policy from 2004 has been revoked.