Instalment deferral for Retail and Business Banking loans

at Standard Chartered Bank

Retail Banking, Bangladesh

Dear Valued Client,

Hope this email finds you in good health.

We understand that these are uncertain times for all of us due to the COVID-19 pandemic
situation prevailing in Bangladesh. We would like to thank you for continuing regular
repayment of your loan instalment amidst this ongoing crisis.

Recently, Bangladesh Bank issued a circular (BRPD Circular no.13 dated 15-June-2020),
regarding loan instalment deferral. As per this circular, you can apply for instalment deferral
on your term loans (both in personal and company name) till 30-September-2020. More
details of the program are explained through the following questions and answers.

Q: What is instalment deferral?

A: Instalment deferral is not a waiver of interest or principal of the loan. It is only an
arrangement to defer the instalment payment till 30-Seprember-2020.

Q: Does this mean bank is waiving the interest?

A: No, bank is not offering any waiver of interest for the instalment deferral period. The
interest will continue to accrue on the loan.

Q: What will happen to the accrued interest and what is the impact on the loan tenure
and instalments?
A: At the end of the instalment deferral period, the accrued interest will be added to the
loan outstanding amount and the loan will be re-amortized. This will cause the loan
outstanding amount and number of EMI to increase. It may also cause the instalment
size to increase.

Q: Will availing instalment deferral increase my interest expense?

A: Yes, if you avail instalment deferral facility, your overall interest expense on the loan will
increase. Please note the example shared in the Annexure on the next page that depicts
the impact of availing instalment deferral on a term loan of BDT 1 million with tenure of 24
months as an illustration.

Q: What are the other concerns that I should be aware of if I avail instalment deferral?
A: During the instalment deferral period, partial prepayment or early settlement of the loan,
and changes of instalment date, tenure, instalment amount and loan type, cannot be
processed. Moreover, you cannot apply any new loan or top up loan from the bank unless
at least 6 instalments have been paid after the end of the instalment deferral period.

Q: What are the Terms and Conditions of availing instalment deferral?

A: The terms and conditions are available at bit.ly/scidtnc

Q: What are the benefits of availing instalment deferral?

A: If your income is seriously impacted and you are not able to continue repayment of your
term loan temporarily, you can apply for the instalment deferral till 30-September-2020.
However, we recommend you carefully consider the implications of increase in interest
expense and then decide whether availing the instalment deferral will be beneficial for you
in the long run.
Annexure: Sample loan amortization schedule to illustrate the impact
of availing instalment deferral
Loan amount BDT 1,000,000.00
Loan Disbursement Date 01-July-2019
Interest Rate 9.00%
Tenure (months) 24

Scenario 1: Without instalment deferral Scenario 2: With 3 month instalment deferral (after 12th EMI)

Principal Interest Loan Interest

SL Month EMI Principal Payment/ Loan
Payment Payment Outstanding SL Month EMI
Payment *accrual Outstanding

1 30-Jul-19 45,685 38,185 7,500 961,815 1 30-Jul-19 45,685 38,185 7,500 961,815

2 30-Aug-19 45,685 38,471 7,214 923,344 2 30-Aug-19 45,685 38,471 7,213 923,344

3 30-Sep-19 45,685 38,760 6,925 884,584 3 30-Sep-19 45,685 38,760 6,925 884,584

4 30-Oct-19 45,685 39,050 6,634 845,534 4 30-Oct-19 45,685 39,050 6,634 845,534

5 30-Nov-19 45,685 39,343 6,342 806,191 5 30-Nov-19 45,685 39,343 6,342 806,191

6 30-Dec-19 45,685 39,638 6,046 766,553 6 30-Dec-19 45,685 39,638 6,046 766,553

7 30-Jan-20 45,685 39,936 5,749 726,617 7 30-Jan-20 45,685 39,936 5,749 726,617

8 29-Feb-20 45,685 40,235 5,450 686,382 8 29-Feb-20 45,685 40,235 5,449 686,382

9 30-Mar-20 45,685 40,537 5,148 645,845 9 30-Mar-20 45,685 40,537 5,147 645,845

10 30-Apr-20 45,685 40,841 4,844 605,004 10 30-Apr-20 45,685 40,841 4,843 605,004

11 30-May-20 45,685 41,147 4,538 563,857 11 30-May-20 45,685 41,147 4,537 563,857

12 30-Jun-20 45,685 41,456 4,229 522,401 12 30-Jun-20 45,685 41,456 4,228 522,401

13 30-Jul-20 45,685 41,767 3,918 480,634 13 30-Jul-20 - - *3,918 522,401

14 30-Aug-20 45,685 42,080 3,605 438,554 14 30-Aug-20 - - *3,918 522,401

15 30-Sep-20 45,685 42,396 3,289 396,159 15 30-Sep-20 - - *3,918 522,401

New outstanding on 1 October 2020 after adding
534,155
accrued interest of 3 month deferral period

16 30-Oct-19 45,685 42,714 2,971 353,445 16 30-Oct-19 45,685 41,679 4,006 492,476

17 30-Nov-19 45,685 43,034 2,651 310,411 17 30-Nov-19 45,685 41,991 3,694 450,485

18 30-Dec-19 45,685 43,357 2,328 267,055 18 30-Dec-19 45,685 42,306 3,379 408,179

19 30-Jan-20 45,685 43,682 2,003 223,373 19 30-Jan-20 45,685 42,623 3,061 365,556

20 28-Feb-21 45,685 44,009 1,675 179,363 20 28-Feb-21 45,685 42,943 2,742 322,613

21 30-Mar-21 45,685 44,340 1,345 135,024 21 30-Mar-21 45,685 43,265 2,420 279,348

22 30-Apr-21 45,685 44,672 1,013 90,352 22 30-Apr-21 45,685 43,590 2,095 235,758

23 30-May-21 45,685 45,007 678 45,345 23 30-May-21 45,685 43,917 1,768 191,841

24 30-Jun-21 45,685 45,345 340 0 24 30-Jun-21 45,685 44,246 1,439 147,595

25 30-Jul-21 45,685 44,578 1,107 103,018

26 30-Aug-21 45,685 44,912 773 58,106

27 30-Sep-21 45,685 45,249 436 12,857

28 30-Oct-21 12,953 12,857 96 0

Interest expense in first 12 months: BDT 70,618 only Interest expense in first 12 months: BDT 70,618 only

Interest expense in next 12 months: BDT 25,816 only Interest expense in remaining tenure: BDT 38,673 only (▲50%)

Loan end date 30 June 2021 Loan end date extended by 4 months

Important notes:
• The above example is an indicative calculation for illustration only
• The actual impact may vary from case to case depending on loan disbursement date, repayment date, tenure.
• The higher the loan amount and loan tenure, the higher will be the increase in interest expense and tenure upon availing
instalment deferral. Hence, for long tenure loans such as Home Loan and Loan Against Property, the interest expense will
significantly increase.

If you understand the implications of availing instalment deferral and are willing to avail Instalment deferral, kindly call
our Client Care Centre at 16233 (from mobile) or (02) 8332272 to log your request.