Bangladesh Bank (BB) has relaxed the conditions for rescheduling short-term agricultural credit to enhance food production and growing agro-based industry in the country.
The move came in the recent global economic context, increase in the prices of various agricultural inputs in the international market and its transportation cost, according to a central bank notification.
“Entrepreneurs in this sector need to bring more dynamism in their production activities to prevent the rise in prices of agricultural commodities in the domestic market,” it said.
As a result, the BB asked banks to follow relaxed guidelines in rescheduling short-term agricultural loans to facilitate the repayment of loans to the entrepreneurs in the agricultural sector and to maintain normal credit flow, reports UNB.
Bakers can rearrange for a maximum period of 3 years with a grace period of 6 months from the date of rescheduling of short-term agricultural loan by relaxing the condition of accepting down payment on the basis of the customer relationship.
In some cases, such loans can be rescheduled without a down payment.
Besides, the certificate cases can be postponed or settled out of the court by negotiation with the customer and facilitating rescheduling also.
The aforesaid benefits will also apply to short-term agricultural loans rescheduled to whoever rescheduled the loan earlier.