‘Strict conditions restrict farmers’ access to loans’

Agriculture Minister Abdur Razzaque has said that the farmers do not have access to loans due to strict conditions, whereas they should get loans without collateral.

“The government is providing loans at a 4% interest rate for the farmers. But most of the time, they cannot meet the required conditions. Loan process must be more flexible so that they also have access to loan,” he said while addressing a workshop on Sunday.

Adorsho Pranisheba Limited organised the workshop on financial inclusion in livestock sector in the capital.

“Similarly cheating of insurers is the main problem for insurance in agriculture and livestock sector, Razzaque pointed out.

“A cow priced at Tk 5-10 lakh needs an insurance policy. But the people do not trust insurers who often cheat the customers. The insurance sector should be pro-people first and trust must be built among the customers,” he said.

Tk3,550 crore was disbursed in the fiscal year 2020-21 in the livestock sector which is 14 % of the total agriculture loan, said Md Ainul Haque, former director general of the department of livestock services while presenting the keynote paper.

Complexity in the loan process, collateral problem, the unwillingness of private banks and the presence of local money lenders are the main barriers to access to a loan for the farmers, he identified.