To address the impact of the coronavirus pandemic, Bangladesh Bank (BB) has launched a special low-interest loan program for farmers of remote hilly areas.
Under this, loans will be given to ordinary farmers and jhum farmers (slash-and-burn agriculture) of Khagrachhari, Rangamati and Bandarban districts of Chittagong Hill Tracts (CHT) at 4 percent interest rate.
The loan will be given for cultivation of agricultural products, spices, cattle farms and jhum farms.
BB on Wednesday (July 29) issued a circular in this regard and sent it to the chief executive officers of commercial banks.
It has directed the commercial banks to open bank accounts with Tk 10 deposit so that farmers in remote areas of the hills can get loans.
This is the first time that central bank has launched such special incentive loan program for ordinary and jhum farmers in remote hill areas.
At present, conditions to open bank accounts restricts farmers of remote hill areas to open accounts and get any loan facilities. However, only a handful of NGOs conduct microfinance activities on a very limited scale. These are limited to district or upazila level.
According to central bank sources, Bangladesh Bank will pay special attention so that the farmers in remote areas of the hills can also enjoy the benefits of this loan program.
Also, commercial banks have been directed to formulate special loan programs.
Additionally, for jhum farmers in the three districts of CHT, special consideration will be given to open bank accounts on the recommendation of local agriculture officer on the basis of the certificate of the local union council or headman (the head of the local government system in the hills).
Accounts can also be opened on the basis of the recommendation of the general farmers' union council and agriculture officer.
Low interest loans will be given to create agro-orchards on the hills which can create employment as well as encourage the cultivation of spices. Among them, loans will be given to cultivate ginger, turmeric, chilli, black pepper and bay leaves. Loans will also be given to farm cattle.
No collateral can be taken to issue the loans. If there is ownership of land in the possession, the loan will be given on the recommendation of the local headman and agriculture officer.
