BB extended Tk3,000cr agriculture refinance scheme for 3-month

Staff Reporter :
Farmers will get loans from banks at four percent interest and the banks will get the same amount of refinancing facility from the central bank at 1 percent interest as the Bangladesh Bank (BB) on Thursday extended the tenure of the Tk3,000 crore refinance scheme by three months.
According to a BB circular, the Agricultural Credit Department of the central bank said the scheme, which was due to expire on Thursday, has been extended till September 30 this year.
Banks will pay the central bank the principal amount along with the interest within the next 18 months from the date of refinancing.
On the other hand, at the consumer level in the grain and crop sector, the term of this loan will be a maximum of 12 months. However, in other sectors such as fish farming, poultry and livestock sector, the loan period will be 18 months with a grace period of 3 months.
Loans taken under this scheme can in no way be used to adjust borrowers’ old debts.
The directive also said that banks should ensure disbursement of at least 30% of the allocated funds in the grain and crop sectors.
However, if a farmer or a customer defaults in any bank or financial institution, he/she will not get a loan under this scheme.