To ensure food security, Bangladesh Bank formed a refinancing fund of Tk 5,000 crore last year to disburse loans at only 4% interest. Many banks are giving large loans from this fund. Bangladesh Bank has set a maximum loan limit of Tk 20 lakh in this fund to ensure loan facilities for real farmers.
According to the notification, a special incentive refinancing scheme of Tk 5000 crore has been set up in the agriculture sector to ensure food security. Some banks have already given large loans with money from this fund. Henceforth, to ensure credit facilities to more genuine farmers, the maximum loan limit in favor of a customer in the livestock sector has been fixed at Tk 20 lakh.
Bangladesh Bank formed a refinancing fund of Tk 5,000 crore in November 2023 to ensure the country’s food security amid the dollar crisis, and Russia-Ukraine war. From here the banks get only 0.50 percent interest. At the farmer level, the maximum interest is fixed at 4 percent. At present, the interest rate on agricultural loans is around 10 percent. And banks are offering up to 10 percent interest on raising funds.
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