The central bank has instructed banks to focus on agriculture loans at a reduced interest rate in the flood affected districts, mostly in the Sylhet division.
The Agriculture Credit Department (ACD) of Bangladesh Bank on Monday issued a circular asking banks to disburse 40 per cent of the remaining allocation of Tk3000 crore refinance scheme in the flood-affected districts, reports UNB.
The central bank created the re-finance scheme to boost production in the agriculture sector.
Banks will disburse agricultural loans under this scheme at 4 per cent interest rate. The BB will provide funds at 1.0 per cent interest rate to the banks.
Marginal farmers in a group will get maximum Tk2.0 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 Tk3000 crore refinance scheme.
Even though the flood water started to recede in many of the 17 affected districts, hundreds of thousands have already been impacted and dozens died.
