Bangladesh Bank has instructed banks to give special attention to disbursing agriculture loans at reduced interest rates in the flood-affected districts.
The Agriculture Credit Department (ACD) of the Bangladesh Bank on Monday issued a circular, asking banks to disburse 40 per cent of the remaining allocation of Tk 3000 crore refinance scheme in the flood-affected districts.
The central bank created the re-finance scheme to boost production in the agriculture sector.
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Banks will disburse agricultural loans under this scheme at 4 per cent interest rate. The central bank will provide funds at 1.0 per cent interest rate to the banks.
Marginal farmers in a group will get maximum Tk 2.0 lakh 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.
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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 3000 crore refinance scheme.
