The lending rate for credit under the Tk 50.0 billion stimulus package for farmers has been revised down to 4 per cent from 5 per cent.
Banks participating in the scheme will receive a refinancing benefit from Bangladesh Bank at one per cent interest rate, the central bank announced on Monday, reports bdnews24.com.
Prime Minister Sheikh Hasina unveiled the incentive package for the agriculture sector to mitigate the impacts of a nationwide shutdown due to a coronavirus outbreak on Sunday.
Small and medium scale farmers in rural areas producing grains, fruits, flowers, fisheries, poultry farms, dairy farms will be eligible for loans from the fund, Hasina said.
"We reduced the interest rate to four per cent after holding discussions with the prime minister. Everything has been done in accordance with her directive,” said Kazi Saidur Rahman, executive director of Bangladesh Bank.
According to BSS, the central bank on Monday issued a guideline for the stimulus package of Tk 50.00 billion announced by the government for agriculture sector.
For taking the loan facilities, interested banks will have to ink participation agreement with Bangladesh Bank.
The banks will repay the money with interest to the central bank within 18 months, including six months grace period.