Farmers eligible for loans of up to Tk 10 million

Bangladesh Bank has introduced a Tk 10 billion refinancing scheme for farmers and rural entrepreneurs to boost agricultural production, create employment in rural areas and ensure food security. The central bank announced the Agriculture and Rural Sector Refinancing Scheme in a circular on Thursday.

Under the scheme, loans will be available at an interest rate of 8% at the customer level. Launched on June 8, 2026, the scheme will remain in effect for three years.

The scheme will finance crop production, agricultural machinery, fisheries, livestock and various income-generating activities in rural areas. So far, 42 banks have signed agreements with Bangladesh Bank to participate in the scheme.

According to the central bank, an individual can borrow up to Tk 3 million for crop production, Tk 2 million for agricultural machinery and Tk 1.5 million for income-generating and other rural activities. The highest loan limit is Tk 10 million for fisheries and livestock.

Small, marginal and sharecroppers will receive special facilities. They can obtain up to Tk 500,000 individually without collateral for crop production. Only the crops produced will serve as security against such loans.