Low-cost loan limit for cinema owners doubled

Bangladesh Bank (BB) has doubled the loan limit for would-be cinema owners and existing ones as well to help the ailing industry revive.

Now a bank can lend a maximum Tk 10 crore for building a new cinema, up from Tk 5 crore the central bank allowed through a circular issued in February this year.

Existing cinema owners can also avail the loan to renovate their halls, said the circular.

However, the BB said banks have to assess the loan applications properly and must follow due diligence.

Earlier in February this year, the central bank announced a Tk 1,000-crore low-cost refinance fund for cinema hall owners.

The interest rate for availing the loan has been set at 5 percent in metropolitan areas and 4.5 percent outside.

The borrower will be given a one-year grace period and another seven years to repay the loan, according to a Business Insider Bangladesh report published on February 15, 2021.