Incentives of Tk. 3000 crore at 4% interest for farmers
Bangladesh Bank has announced a new Tk. 3,000 crore incentive package for the agricultural sector to offset the damage caused by the coronavirus situation.
The central bank issued a circular in this regard on Tuesday (September 14).
According to the circular, farmers will be able to take loans from banks at four per cent interest under this incentive package. The bank will receive funds from this incentive package at an interest rate of one per cent. With this, they will be able to disburse the loan with an additional three percent. This loan with a grace period of six months has to be repaid within 18 months (12 months + grace period 6 months).
Earlier, in April last year, the central bank launched an incentive package of Tk. 5,000 crore. Of this, about 92 percent has been disbursed.
The duration of the fund expired in June. The central bank has decided to launch this new incentive package to help farmers.
Those who get loans:
Under the new scheme, participating banks will have to ensure disbursement of loans at the farmer level through their own network. Under the scheme, participating banks will be able to disburse loans up to a maximum of 20 percent of the existing loan facility (maximum of Tk. 10 crore) to the aggrieved farmers who have taken earlier loans.
The maximum amount of loan for the new farmer will be disbursed by the concerned bank on the basis of necessary verification and selection as per the ‘Agriculture and Rural Credit Policy’. Loans up to a maximum of Tk. 2 lakh can be disbursed among the small, marginal and burga farmers for crops /land with personal guarantee.
At the household level, priority should be given to providing loans against personal guarantees in the field of cow rearing and cow fattening. In case of loans in sectors other than grain and crop loans, the bank will be able to decide on the minimum collateral / support collateral based on the banker-customer relationship. The loan taken under this scheme cannot be used to reconcile the old loan of the customer in any way. If you are in default, you will not be considered eligible for the loan.