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Bangladesh Bank raises farm loan target by 16% in FY2018

Bangladesh Bank raises farm loan target by 16% in FY2018

DHAKA: The central bank has raised the target for banks to disburse agricultural loans by 16.24 percent to Tk 204 billion in fiscal 2017-18 year. Bangladesh Bank announced the new target in its Agricultural and Rural Credit Policy and Programme for the FY 2017-2018 on Thursday. Deputy Governor SM Moniruzzaman highlighted the significant parts of the policy at a media conference in the central bank headquarters. Besides the commercial banks, he said, Bangladesh Samabaya Bank is to disburse Tk 200 million and Bangladesh Rural Development Board Tk 7.2 billion in agriculture loans in the current financial year.

According to Moniruzzaman, around 3.9 million farmers received over Tk 209 billion in farm loans last fiscal year, crossing the Tk 175.5 million target by 19.65 percent. As per the new policy, Credit Information Bureau investigation is not required to approve a loan of up to Tk 250,000 for facilitating cultivation of crops. Moniruzzaman pointed out that Bangladesh Bank had already reduced the ceiling of interest on agriculture loans from 10 to 9 percent for the current fiscal year.