BB forms Tk 10,000cr refinancing scheme for agricultural loans

 
Bangladesh Bank (BB) has formed a new Tk 10,000 crore refinancing scheme from its own funds to boost agricultural production, ensure food security, and create employment opportunities in rural areas.

Under the five-year scheme, farmers will be able to access low-interest loans capped at an 8 percent interest rate, according to UNB report. 

The Agricultural Credit Department of the central bank issued a circular in this regard last night (Monday night), sending it to the chief executives of all scheduled banks. 

The initiative aims to financially empower genuine farmers and rural entrepreneurs. Small, marginal, sharecroppers (Borga chashi), and women farmers will receive top priority under this fund.

To identify genuine beneficiaries, banks will utilise information from the local departments of agriculture, fisheries, and livestock, or the government-issued Farmer Cards .

In an effort to ease access, small and marginal farmers will be eligible to secure collateral-free loans of up to Tk 5 lakh solely against the liability of their crops and produce.

Furthermore, instead of immovable property, personal or group social guarantees will be considered as acceptable collateral for women and marginal farmers.

According to the central bank circular, any farmer or client who is a loan defaulter with any bank or financial institution will be disqualified from receiving loans under this scheme.

Additionally, the central bank strictly specified that these loans cannot be used to repay or adjust any existing or past debts.

An individual beneficiary will be permitted to avail themselves of the facilities under this refinancing scheme a maximum of three times.