The Bank of Maldives (BML) has reduced the penalty rate for non-payment of loans.

A bank official told ‘One’ that the two percent taken monthly has been reduced to 0.5 percent. He said this decision was made during a board meeting held on 24th January.

The penalty rate for defaulting on loans was reduced last April from 10 percent to 2 percent.

The penalty is imposed for non-payment of the loan on the due date. The Bank has also advised repaying the loan as per the schedule so that the penalty is not imposed.