Bangladesh Bank has announced agricultural and rural credit policies and programs for the financial year 2024-25. A target of 38 thousand crore taka has been set for disbursement of agricultural loans through commercial banks in the current financial year.
This policy was announced through a press conference at Jahangir Alam conference room of Bangladesh Bank on Thursday (August 29).
According to the policy, the target of Bangladesh Bank’s annual agricultural and rural loan disbursement in the current financial year 2024-25 is Tk 38 thousand crores. Which is 9 percent more than last financial year. However, last fiscal year, 37 thousand 153 crore 90 lakhs were distributed.
Considering the demand, state-owned commercial and specialized banks have set a target of Tk 12,615 crore and private commercial banks Tk 24,121 crore, foreign commercial banks have set a target of Tk 1,264 crore for agricultural and rural loan distribution in the current financial year.
Half or 50% of the total loan will be given by the bank itself and the remaining half will be given through NGOs.
According to the latest labor force survey of the country, 3 crore 17 lakh 80 thousand workers are engaged in agriculture profession. The contribution of agriculture sector to the country’s GDP is 12 percent. The share of agricultural products in total exports is about 3 percent. If frozen fish and jute products are added to this, the share of agriculture in total exports is about 7 percent.
It is informed by Bangladesh Bank, Bangladesh Bank has set a target of Tk 38,000 crores for agricultural and rural loan disbursement in the current financial year 2024-2025 for the banks, taking into account the urgency of adequate credit flow in the agricultural sector for the purpose of achieving GDP growth through increasing agricultural production in the country and controlling inflation. . This target is about 8.57 percent higher than the target for the fiscal year 2023-2024. It should be noted that against the target of Tk 35,000 crore set in the last financial year, the banks have distributed agricultural and rural loans of Tk 37,153.90 crore, which is Tk 4,324.01 crore from the 32,829.89 crore distributed in the previous fiscal year 2022-2023 or 13.17 percent more. 1889 crores in interest under agriculture and rural credit policy. Local private banks have to disburse at least 50% of the target agricultural and rural credit through their own network and compulsorily disburse 60% of the target to the crops and crops sector, 13% to the fisheries sector and 15% to the livestock sector.
A fund called ‘Bangladesh Bank Agricultural Development Common Fund (BBADCF)’ has been formed to invest the unearned portion of the banks’ agricultural and rural credit distribution targets in the agricultural sector. The unearned portion of banks that fail to achieve the target will be deposited in this fund and they will be paid interest at the rate of 2% against the amount deposited. The money deposited in this common fund will be distributed to the customer level under the agricultural and rural credit policy, as per the instructions issued by Bangladesh Bank from time to time through the banks that have achieved the target.
Agricultural and rural credit policies and programs for the financial year 2024-2025 will help to reach the marginal people with low interest credit flow. Apart from increasing agricultural productivity, this policy will also play a leading role in creating self-employment and poverty alleviation through rural finance in rural areas.
