Provide farm loans in flood-hit districts, BB asks banks

Bangladesh Bank has asked banks to disburse agriculture credit at 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 percent of the remaining allocation of Tk3,000 crore refinance scheme in the flood-hit districts.

The BB created the re-finance scheme to boost production in the agriculture sector.

Banks will disburse agricultural loans under this scheme at 4 percent interest rate. The BB will provide funds at 1 percent interest rate to the banks.

Marginal farmers in a group will get maximum Tk2 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, 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 Tk3,000 crore refinance scheme.