Bangladesh Bank has set a target of 600 billion taka in agricultural and rural sector loan disbursement for banks in fiscal year 2026-27. This target is 53.85 percent higher than the previous fiscal year’s target of 390 billion taka.
Bangladesh Bank said this lending policy will play an important role in increasing food production and employment through adequate credit supply to the agricultural sector, while also raising incomes among rural populations.
The agricultural and rural lending policy and program were announced Monday, August 17, at the Jahangir Alam Conference Hall at Bangladesh Bank’s head office.
Bangladesh Bank Governor Md Mostaqur Rahman announced the policy at the event, attended by the deputy governor, executive directors, directors, and officials from the Agricultural Credit Department. A website prepared by Bangladesh Bank on agricultural credit was also launched as part of the policy announcement.
Bangladesh Bank said the fiscal year 2026-27 target sets 204.95 billion taka for state-owned commercial and specialized banks and 395.05 billion taka for private and foreign commercial banks in agricultural and rural loan disbursement.
Several changes have been introduced under the new policy to ensure loans reach genuine farmers. Certification from local agricultural extension officers, sub-assistant agriculture officers, fisheries officers, and livestock officers can now be used as documentation for obtaining farmer cards. Additionally, guidance for rural loan disbursement to farmers engaged in income-generating activities in the crop sector has been introduced, and the fixed limit on farmer group membership numbers has been relaxed.
According to the press release, for loan applications up to 500,000 taka in the fisheries and livestock sector, no charges beyond the annual documentation fee can be collected under the policy for salt production on up to 2.5 acres of land. Additionally, for fisheries and livestock sector loans up to 500,000 taka, priority has been directed for timely disbursement or investment, particularly for women and marginalized farmers. To ease financing for women and marginalized farmers, the use of alternative collateral instead of land or immovable property has been recommended.
Additionally, the requirement for mandatory passbooks in agricultural loan disbursement has been relaxed. To simplify agricultural loan disbursement, the requirement for prior Bangladesh Bank approval before loan disbursement has also been relaxed.
The policy states that banks can disburse loans in the fisheries and livestock sector to individual or grouped farmers/breeders. Additionally, hatchery fish fry production, poultry chick production, and camel rearing have been included in the agricultural lending policy. The refinancing policy also includes provisions for refinancing funds of 100 billion taka and 30 billion taka.
To address the effects of climate change, the policy includes provisions for bringing customers under insurance coverage for agricultural loans, based on mutual relationships and coordination between banks and farmers or customers. Additionally, to maintain year-round loan disbursement in the agricultural sector, initiatives have been taken to set loan disbursement periods and repayment deadlines after harvest for banana, papaya, mango, lemon, guava, and lychee cultivation.
Bangladesh Bank said timely and adequate fund supply to the agricultural and rural sector is necessary for controlling inflation, poverty alleviation, employment creation, raising incomes among marginalized and poor populations, and establishing a sustainable economy. Bangladesh Bank believes the agricultural and rural lending policy and program will play an effective role in controlling inflation and boosting employment and income among rural populations by increasing production and supply of the country’s agricultural products.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report