Dhaka: Bangladesh Bank (BB) has mandated that banks must verify the Credit Information Bureau (CIB) report for all new loans sanctioned and existing loan renewals across agricultural and rural sectors. This directive marks a significant shift in the lending process, as previously, a CIB report was not mandatory for loans up to Tk2.5 lakh in these sectors.
According to Bangladesh Sangbad Sangstha, the central bank issued a circular today outlining the new requirements. The circular highlights the risk of borrowers securing multiple loans of up to Tk2.5 lakh from different banks without the lending institutions being aware, potentially leading to an increase in default loans.
The circular elaborates on the improved accessibility of CIB reports. It states, “Currently, collecting CIB reports has been made much easier than before. Banks can now quickly collect the CIB report of a loan applicant using the Bangladesh Bank’s CIB server.” This development aims to streamline the verification process and mitigate the risk of loan defaults by ensuring thorough background checks on potential borrowers.