Bangladesh Bank has created a Tk 1,500 crore refinancing fund to lend to landless and marginal farmers, students, expatriates and migrant workers who have returned from abroad. The central bank issued a circular on the scheme on Thursday, 12 November.
Under the circular, commercial banks will lend from the fund at 7 per cent interest. A borrower can take up to Tk 10 lakh, and loans of up to Tk 5 lakh need no collateral, although a bank may ask for two guarantors if it thinks fit.
Landless and marginal farmers, students, expatriates, returning migrant workers and their family members are eligible. Farmers holding smart cards, people with disabilities and women entrepreneurs are also covered.
While an individual can borrow up to Tk 10 lakh, a group of up to five people can borrow up to Tk 40 lakh jointly. Borrowers get a grace period of up to six months, so no instalment is due for the first six months; repayment starts after that.
Loan defaulters are not eligible. The loans are disbursed through commercial banks, so farmers who want one apply at a bank branch. The report is by Ittefaq's digital desk.
Photo: Rashed Ali / Wikimedia Commons (CC BY-SA 3.0)
Source: Ittefaq
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