Agriculture loan disbursement went up 16.15 percent reaching Tk 21,504.20 crore in July-March in the current fiscal 2021-22.
In the same period of the previous fiscal, Tk 18513.31 crore of credit was disbursed among the farmers, according to an updated report of Bangladesh Bank.
In the first nine months of the current fiscal, 76 percent of the target agricultural loans have been disbursed, 5 percent more than the same period of the last fiscal.
Besides, debt collection has also increased during the period under review and the amount of defaulted loans has decreased, according to the BB report.
Market analysts said demand for agricultural credit has increased this year as compared to last year.
Debt disbursements did not meet expectations last year due to the global epidemic, they said, adding that as the corona situation has improved this year, the pace of debt has returned.
The recovery of farm loans has recently gained momentum, helping banks to reduce their defaulted loans in the sector efficiently, they said.
If this trend of disbursement of loans continues, the banks will be able to achieve 100 percent of the target this year, they expect.
According to the latest data from the central bank, in the first nine months of the current fiscal, some banks have achieved 100 percent of their annual target of disbursing loans, but many banks are below 50 percent of their target.
Even five banks have below 20 percent targets. During this time, the farmers have repaid the loan of Tk 19,976.24 crore. The collection has increased by Tk 201.35 crore over the same period last fiscal.
The banking sector has set a target of disbursing Tk 28,391 crore during the period under review. Till March, the loans disbursed by the banks amounted to Tk 21,504.20 crore which was 75.74 percent of the total target.
Banks provide loans in two parts of agricultural credit, namely grain and non-farming sectors including livestock and fish farming.