Bank of Maldives (BML) has reduced overdue interest rates or fine for non-payment of loans issued by the bank to 0. 5 percent.
BML’s Head of Public Relations Mohamed Saeed confirmed to Sun that that the overdue interest rate charged by the bank to 0.5 percent per month; a decision he said the bank’s board had taken during a meeting held on January 24th.
The reduction prior to this took place back in April of last year – from ten percent to two percent.
Overdue interest is a fine levied for a particular period that the bank has not received loan payment from the borrower.
BML has urged customers to regularly settle loan payments to avoid overdue interest.