Photo: Collected
Bangladesh Bank has formed a refinancing scheme of 10,000 crore
taka to increase agricultural production and create employment in rural areas
to ensure food security in the country. Under this five-year scheme, formed
entirely from its own funds, farmers will receive low-interest loans.
Last night, a circular in this regard was issued by the
Agricultural Credit Department of Bangladesh Bank and sent to the chief
executives of all scheduled banks in the country.
For whom is this loan
This loan will be given to the country's genuine farmers and
rural entrepreneurs to make them economically self-reliant. However, the
customers will be selected according to certain conditions and rules:
• Who will get it: Small, marginal, sharecroppers and women
farmers will get special priority in getting this loan. The information of the
local Department of Agriculture, Fisheries and Livestock or the government's
'Farmer Card' will be used to identify genuine farmers.
• Collateral-free loans: Small and marginal farmers can take a
loan of up to five lakh taka without collateral, only against the crop
liability. For women and marginal farmers, personal or group social collateral
will be considered instead of immovable property.
• Who will not get it: If a farmer or customer is in default
with any bank or financial institution, he will not get a loan under this
scheme.
• Use and limit of loan: This loan cannot be used for repayment
or consolidation of old loans in any way. A customer can take advantage of this
scheme a maximum of three times.
How much is the loan in which sector
This loan will be given in almost all major branches of the
agriculture and rural sector. The maximum loan limit for a customer based on
the sector has been set as follows:
• Fisheries and livestock sector: maximum 1 crore taka.
• Crops and crops sector: maximum 30 lakh taka (against crop
liability for cultivation on a maximum of 5 acres of land).
• Agricultural machinery sector: maximum 20 lakh taka.
• Income generating activities and other rural loans: maximum 15
lakh taka. Interest rate The interest rate of this loan is very affordable.
• Maximum interest/profit: The maximum interest rate at the
customer or farmer level will be 8 percent (simple interest). Even in the case
of Sharia-based banking, the profit rate cannot exceed 8 percent.
• Bank Funding Cost: Commercial banks will get this fund or
refinancing facility from Bangladesh Bank at 4 percent interest.
Total Allocation and Responsibilities of Banks
• Total Allocation: The total size of this scheme is 10 thousand
crore taka. This is a reusable fund, meaning the money collected can be
distributed again as loans.
• Fund Distribution: Bangladesh Bank will allocate this fund considering
the needs of the banks and the annual agricultural loan distribution capacity.
Banks will have to sign a 'Participation Agreement' with Bangladesh Bank within
one month of receiving the loan.
• Campaign: Banners will be hung inside and outside each bank
branch to inform farmers about this easy-to-use loan and a special campaign
will be launched before the start of the farming season.
Loan repayment and recovery method
• Loan tenure and grace period: The maximum loan repayment
period will be 18 months, including a maximum grace period of three months (the
time before the loan repayment starts) considering the sector at the farmer
level.
• Bank's responsibility for recovery: The concerned distributing
bank will be fully responsible for recovering the loan from the farmers.
Whether the farmers have returned the money or not, the dues of Bangladesh Bank
cannot be matched. The money that the banks take from Bangladesh Bank must be
repaid with interest within 18 months.
• Strict supervision and fines: If any bank charges more than 8
percent interest from its customers or misuses funds, Bangladesh Bank will
collect the money by imposing a one-time fine of 2 percent above the prescribed
rate on that bank. If the bank does not repay the money within the prescribed
time, the money will be deducted from the current account of that bank with
Bangladesh Bank.
Bangladesh Bank has informed that this initiative will play a
major role in improving the quality of life and increasing production of people
in the vast rural areas of the country.
You
can learn about South Asia's largest exhibition on the agricultural topic
through this link: http://graintechbd.com/
Source: Online/GFMM
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