BB allows banks to collect 1pc supervision charge on CMSME personal, auto loans

Bangladesh Bank (BB) has allowed banks to collect a one per cent supervision charge on the personal and auto loans offered to the Cottage, Micro, Small, and Medium Enterprise (CMSME) and consumer financing sectors.

This charge can be imposed on the loan principal once a year for each customer, said a BB circular issued on Monday.

As per the circular, the supervision charge can be collected only once a year, and no compound interest or additional charges can be imposed on this charge.