Dhaka: Bangladesh Bank has significantly increased the agricultural credit disbursement target for the fiscal year 2026-27, setting it at Tk 60,000 crore, marking a nearly 54 percent rise from the previous fiscal year's target of Tk 39,000 crore. Under the new guidelines, commercial banks are now required to allocate at least 4 percent of their total loan portfolios to the agriculture sector, up from the earlier mandate of 2.5 percent.
According to United News of Bangladesh, the announcement was made by BB Deputy Governor Dr Md Habibur Rahman during a press conference at the central bank headquarters. Of the total Tk 60,000 crore target, Tk 20,495 crore has been designated for state-owned commercial and specialized banks, with private and foreign banks responsible for disbursing the remaining Tk 39,505 crore.
The central bank's primary goal with this policy is to enhance agricultural production and manage inflation by ensuring a consistent flow of credit to the sector. To bolster the monitoring and supervision of the program, a specialized "web-based agricultural credit MIS software" has been developed.
The Bangladesh Bank has also introduced several new measures in the policy framework for the year. Notably, loans up to Tk 5 lakh in the fisheries and livestock sectors no longer require traditional immovable property collateral. Instead, banks can now accept personal, social, or group guarantees, which is expected to make credit more accessible, particularly to women and marginal farmers.
The policy further expands group-based financing for crops, fisheries, and rural income-generating activities, with relaxed limits on group membership size. Credit coverage has been extended to include new sub-sectors such as fish and poultry chick production in hatcheries, camel farming, blueberry cultivation, shimul root, ashwagandha, and organic fertilizer production using eggshells.
To ensure the genuineness of farmer beneficiaries, certificates from local agriculture, fisheries, or livestock officers, or a Farmers' Card, can be used for identification. The requirement for possessing a passbook to obtain a loan has been eliminated. Additionally, a provision has been introduced allowing banks and farmers to mutually agree on insurance coverage to mitigate climate change risks.
The central bank remains optimistic that these timely policy measures will be instrumental in reducing poverty, creating new employment opportunities, and sustaining overall macroeconomic stability in Bangladesh.