BB increases farm loan disbursement target by 10.66pc

The Bangladesh Bank has raised the agriculture and rural loan disbursement target by 10.66 per cent for the current fiscal year (FY2019-20), compared to the immediate past fiscal year.

The central bank set the target at Taka 241.24 billion for FY20, which was was Taka 218.00 billion in the last fiscal.

Deputy Governor of the central bank SM Moniruzzaman announced the target on Tuesday while rolling out the agriculture and rural credit policy for the FY20 at a meeting at the central bank’s headquarters in Dhaka, reports BSS.

According to the new policy, state owned commercial and specialised banks will disburse Taka 103.75 billion while private and foreign commercial banks will disburse Taka 137.49 billion.

The deputy governor said the target will not be difficult to achieve for the banks, as they disbursed Taka 236.16 billion last fiscal exceeding their annual disbursement target (by 8.33 per cent).

Moniruzzaman said BB has published the annual Agricultural and Rural Credit Policy and Programme for FY20 for achieving the prime objectives of sustainable development goals (SDGs), including eradication of poverty, ensure safe and nutritious food and maintain good health for the people of the country.

The current agricultural credit policy has included some new concepts to ensure the food security of the people and to develop a sustainable agricultural credit system.

These are: reducing the use of Micro-finance Institution (MFI) linkage and disbursing credit through own branches and agent banking of banks, agricultural credit for cashew, rambutan cultivation and potato cultivation on double bed process of water hyacinth.

CIB report must for all outstanding crop loans, but CIB report is not essential for new allocation or renewal loans up to Taka 250,000.

The other concepts are normal timeline (institution for seed production and sale) for credit repayment, increasing credit ceiling logically for every acre land of crop credit disbursement, credit policy for rearing cow, goat and sheep and cattle fattening.

Credit policy for commercially silk production and implementing the piloting activities of agriculture and rural credit simplification adopted by access to information (a2i).

In the previous fiscal FY19, agricultural and rural credit was disbursed among 38,83,424 person in total of which number of women borrower is 16,01,856 who have received Taka 71.91 billion as credit.

In the previous year 29,89,237 small and marginal farmers have received around Taka 163.23 billion from different banks. Beside this Taka 316.10 million was disbursed among 9,950 farmers of char, haor and less developed area of the country.