Target rises 53.85pc to Tk 60,000cr for FY27
Bangladesh Bank (BB) has set a target of disbursing Tk 60,000 crore in agricultural and rural credit in the 2026-27 fiscal year, marking a 53.85 percent increase from the Tk 39,000 crore target fixed for the previous fiscal year.
This means the agricultural and rural credit target has increased by Tk21,000 crore in the span of a single fiscal year.
The central bank announced the Agricultural and Rural Credit Policy and Programme for FY2026-27 at a programme held at its headquarters in the city on Monday with a view to increasing agricultural production, employment and rural incomes while ensuring adequate credit flow to the sector.
Of the total target, Tk 20,495 crore has been allocated for state-owned commercial and specialised banks, while Tk 39,505 crore has been set for private and foreign commercial banks.
Simultaneously, banks are now mandated to allocate at least 4per cent of their total loan disbursements to the agricultural sector.
This means the agricultural and rural credit target has increased by Tk21,000 crore in the span of a single fiscal year.
During the same ceremony, Bangladesh Bank inaugurated the “Web-based Agricultural Credit Management Information Software” to strengthen the monitoring of agricultural and rural credit activities.
Out of the new target, Tk20,495 crore has been set for state-owned commercial and specialized banks, while Tk39,505 crore has been allocated to private and foreign commercial banks.
Bangladesh Bank stated that the primary objectives of the new policy are to increase production by ensuring adequate credit flow to the agricultural sector, revitalize the rural economy, and assist in controlling inflation.
Special emphasis has also been placed on facilitating easier credit access for marginal farmers, female farmers, and rural communities.
Under the new policy, for loans up to Tk5 lakh in the fisheries and livestock sectors, provision has been made for alternative collateral instead of traditional land or immovable property collateral.
This includes arrangements such as personal guarantees, social guarantees, and group guarantees.
This measure has been introduced specifically to simplify financing for women and marginal farmers.
Furthermore, banks have been directed not to accept any additional charge documents other than those specified in the policy for loans up to Tk5 lakh in the fisheries and livestock sectors.
In addition, instructions have been given not to require extra documents beyond those prescribed in the policy for disbursing loans for salt production on land up to 2.5 acres.
Bangladesh Bank has introduced a new method for identifying genuine farmers.
Attestations from local agricultural extension officers, sub-assistant agricultural officers, fisheries officers, or livestock officers can now be used. Additionally, data from government-issued Farmer Cards can be used to verify a farmer’s identity.
The requirement to hold or issue a passbook to obtain agricultural loans has been abolished under the new policy, simplifying the loan application process for farmers.
Credit distribution under contract farming has also been made easier by relaxing the requirement to obtain prior approval from Bangladesh Bank before disbursing such loans.
The policy clarifies opportunities for disbursing loans not only to individual farmers but also to farmer groups or livestock/fisheries group operators across crop production, fisheries, and livestock sectors.
Furthermore, the maximum limit on the number of members in a farmer group has been relaxed.
