Bangladesh Bank and BRAC Bank have signed an agreement to provide loans under refinancing facilities to the farmers.
Bangladesh Bank has set up a fund titled ‘Refinance Scheme to ensure Food Security’ amounting to BDT 5,000 crore to be disbursed through the participating banks.
Abdur Rouf Talukder, Governor, Bangladesh Bank, attended the Participation Agreement signing ceremony at Bangladesh Bank on January 8, 2023 as the chief guest.
A.K.M Sajedur Rahman Khan, Deputy Governor; Md. Anwarul Islam, Executive Director; Md. Abul Kalam Azad Director, Agricultural Credit Department, Bangladesh Bank, and other senior officials of Bangladesh Bank were present.
Selim R. F. Hussain, Managing Director & CEO, BRAC Bank, signed the agreement on behalf of their respective organizations. Syed Abdul Momen, Deputy Managing Director and Head of SME Banking, BRAC Bank, were also present.
This agriculture refinancing scheme will enable BRAC Bank to provide loans at 4% interest to the farmers engaged in areas of paddy, vegetables, fruits and flowers, fisheries, poultry and dairy. The loan taken by farmers is payable within 18 months. The scheme will run till June 30, 2024.
Welcoming the agriculture refinancing facility, Selim R. F. Hussain, Managing Director & CEO of BRAC Bank, said: "We appreciate Bangladesh Bank for making BRAC Bank a partner of Refinance Scheme to provide subsidized credit to the farmers. As an SME-focused bank, we always strive to expand its agriculture credit portfolio. We have already emerged as the country’s largest collateral-free SME financier, where agriculture loan constitutes a significant portion. We have the financing solutions and extensive nationwide network to reach out to the grassroots farmers.”
“Agriculture financing adds high value to the economy, ensures financial inclusion and drives national development. This engagement with the farmers shows our strong commitment to agriculture financing and grassroots entrepreneurship development,” he affirmed.
