Bangladesh Bank targets to disburse Tk 28,391 crore in farm loans
The central bank has set an 8 per cent higher target for farm loan disbursement this fiscal year with an aim to combat the adverse impacts of the Covid-19 pandemic.
Tk 28,391 crore will be disbursed in farm loans this fiscal year, up from last fiscal year's target of Tk 26,292 crore.
Last fiscal year, banks collectively gave out Tk 25,511 crore, which is 97 per cent of the annual target, according to the annual agricultural and rural credit policy and programme of Bangladesh Bank.
To ensure food security of the people and to develop a sustainable agricultural credit system, the central bank has brought some new farm items under its policy.
Farmers—who are involved in rearing of Sonali variety hen for commercial purposes—will be allowed to enjoy farm loan from this fiscal year.
The latest policy has also included credit norms for rearing Buffalo and Garol variety sheep under the livestock subsector.
Considering the demand of the farmers and actual scenario of farming activities in a particular area, per acre credit limit can be increased up to 15 per cent in contrast to 10 per cent.
The banking regulator has also increased the per acre credit limit for fish cultivation.