Govt to waive up to Tk 10,000 farm loans

Staff Reporter :

The government has decided to waive farming loans of up to Tk 10,000, including interest, in a move aimed at supporting small and marginal farmers.

The decision was made at the first cabinet meeting held at the Secretariat today (26 February) with Prime Minister Tarique Rahman in the chair.

Talking to reporters after the meeting, Cabinet Secretary Nasimul Gani said the initiative aligns with the election manifesto commitments of the BNP, now the ruling party.

“The primary objective is to ensure social security for poor farmers and to strengthen the backbone of the agricultural sector,” he said.

According to Bangladesh Bank data, as of February 25, state-owned commercial and specialised banks, along with private commercial banks, are owed approximately Tk 1,500 crore, including interest, in farming loans.

These loans will fall under the waiver programme. An estimated 12 lakh farmers are expected to benefit from the initiative.

Officials said the move will relieve small and marginal farmers of debt burdens.
Funds these small farmers used to allocate for loan repayments can now be invested in improved seeds, irrigation systems, and other productivity-enhancing inputs, they added.

Asked if the full amount, including interest, would be waived if a Tk 10,000 loan had grown to Tk 20,000 or Tk 30,000 due to accumulated interest, the cabinet secretary confirmed that the entire outstanding amount would be waived, provided the principal amount is Tk 10,000 or less.

“For example, if a farmer initially borrowed Tk 10,000 and the interest increased the total payable amount to Tk 14,000, the full Tk 14,000 will be waived. Both principal and interest will be fully forgiven,” he said.

When asked whether the waiver applies only to state-owned banks or also to other banks, Nasimul Gani said that agricultural loans are primarily disbursed through state-owned banks, indicating that the measure will mainly affect those institutions.