Bangladesh Bank (BB) has instructed banks to give special attention to disburse agriculture loans at a reduced interest rate in the flood-affected districts.
The Agriculture Credit Department (ACD) of the central bank on Monday issued a circular asking banks to disburse 40 per cent of the remaining allocation of Tk 30.0 billion refinance scheme in the flood-affected districts.
The central bank created the re-finance scheme to boost production in the agriculture sector, reports UNB.
Banks will disburse agricultural loans under this scheme at 4.0 per cent interest rate. The BB will provide funds at 1.0 per cent interest rate to the banks.
Marginal farmers in a group will get a maximum Tk 0.20 million loans without collateral, which will be paid by 18 months along with 6 months grace period.
Agriculture and Rural Credit Policy covers cereals and cash crops, vegetables, legumes, and imports of alternative crops such as pulses, oilseeds, spices and maize.
Fruit and flower cultivation, fisheries, poultry and livestock sector, other agricultural crops and irrigation machinery and seed production are also covered in this loans scheme.
The government declared flood-affected districts will be covered under the Tk 30.0 billion refinance scheme.
