Dhaka: Bangladesh Bank (BB) has introduced a Tk 10,000 crore refinancing scheme from its own funds to enhance agricultural production, ensure food security, and generate employment opportunities in rural areas. This initiative is designed to provide farmers with low-interest loans capped at an 8 percent interest rate over a five-year period.
According to United News of Bangladesh, the Agricultural Credit Department of the central bank issued a circular last night to the chief executives of all scheduled banks, outlining the details of the scheme. The primary objective is to financially empower genuine farmers and rural entrepreneurs, with special attention given to small, marginal, sharecroppers (Borga chashi), and women farmers.
To facilitate the identification of genuine beneficiaries, banks will rely on information from local departments of agriculture, fisheries, and livestock, as well as government-issued Farmer Cards. The scheme aims to make access to funds easier for small and marginal farmers, allowing them to secure collateral-free loans of up to Tk 5 lakh based on their crops and produce.
For women and marginal farmers, the scheme offers flexibility by accepting personal or group social guarantees as collateral, instead of immovable property. However, a strict guideline disqualifies any farmer or client with a history of loan default from availing of these loans. Furthermore, the loans are intended solely for new agricultural activities and cannot be used to settle existing or past debts.
Beneficiaries will have the opportunity to avail themselves of the refinancing facilities a maximum of three times under this scheme.