Farm loan on upward curve
Disbursement of farm loan increased and the amount of default loan in the sector witnessed a fall in the first nine months of the current fiscal year, thanks to a strong monitoring system.
The agri-loan disbursement went up by 18.13 percent to Tk 8,159 crore in the July-March period of the current fiscal year, while the amount rose by 9.38 percent to Tk 6,907 crore in the same period last year.
The target of total loan disbursement is Tk 11,512 crore this year -- 71 percent has already been disbursed in the first nine months.
The default loan in the sector was 23 percent or Tk 4,841 crore of outstanding loans at the end of March, down from 26 percent of the outstanding loans in March last year.
According to Bangladesh Bank statistics, loan disbursement by public sector banks increased by 16.82 percent in the July-March period and they distributed Tk 6,158 crore, which was Tk 5,271 crore in the same period last year.
The private and foreign banks' loan disbursement rose by 22.37 percent to Tk 2,002 crore in the period, while the amount was Tk 1, 636 crore in the same period last fiscal year.
The banks realised Tk 7,424 crore in the first nine months of the current fiscal year, up from Tk 6,551 crore in the same period last year.
Disbursement and realisation of farm loans were on an upward curve in the last three years.
From FY2002 to FY2007, loan disbursement ranged from Tk 2,000 crore to Tk 5,000 crore per year, and it made a big jump in 2007-08 to hit Tk 8,500 crore.
Of the loan disbursed, Krishi Bank distributed the highest amount -- Tk 3,284 crore.
Krishi Bank Chairman Khondkar Ibrahim Khaled said monitoring was strengthened in disbursing.
Khaled said Bangladesh Bank officials frequently visit villages and the central bank distributed and realised the loans by setting up camps there. The cellphone numbers of the farmers who were given loans have been kept in a register. The transparent way of loan disbursement has curbed unfair means, he said.
The farmers are coming forward to repay, as they got the loans without any hassles, he added.
They are also yielding good crops and getting reasonable price of their produce. Also, their profit is higher as the government is giving them a huge subsidy, he said.
The Krishi Bank chairman said the government has distributed Agriculture Input Assistance Cards among 1.80 crore farmers.
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