Farm loan disbursement target raised by 10.66%

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Published : 18:02, Jul 23, 2019 | Updated : 18:09, Jul 23, 2019

FILE PHOTO/Syed Zakir HossainBangladesh Bank (BB) has raised the agriculture and rural loan disbursement target by 10.66 percent to Tk 24,124 crore for the current 2019-20 financial year (FY20).
Deputy Governor of the central bank SM Moniruzzaman announced the target on Tuesday (Jul 23) while rolling out the agriculture and rural credit policy for the FY20 at a meeting at the central bank’s headquarters in the capital city.
The disbursement target for the immediate past 2018-19 financial year (FY19) was Tk 218 billion.
According to the new policy, state-owned commercial and specialized banks will disburse Tk 103.75 billion while private and foreign commercial banks Tk 137.49 billion.
The target will not be difficult to achieve for the banks, as they disbursed Tk 236.16 billion last fiscal exceeding their annual disbursement target (by 8.33 percent), said the deputy governor.
Moniruzzaman said BB has published the annual Agricultural and Rural Credit Policy and Programme for FY20 for achieving the prime objectives of sustainable development goals (SDGs), including eradication of poverty, ensure safe and nutritious food and maintain good health for the people of the country.
To ensure the food security of the people and to develop a sustainable agricultural credit system, some new concepts have been added to the current agricultural credit policy. These are: reducing the use of Micro-finance Institution (MFI) linkage and disbursing credit through own branches and agent banking of banks, agricultural credit for cashew, rambutan cultivation and potato cultivation on double bed process of water hyacinth.
CIB report must for all outstanding crop loans, but CIB report is not essential for new allocation or renewal loans up to Tk 250,000.
The other concepts are normal timeline (institution for seed production and sale) for credit repayment, increasing credit ceiling logically for every acre land of crop credit disbursement, credit policy for rearing cow, goat and sheep and cattle fattening.
Credit policy for commercially silk production and implementing the piloting activities of agriculture and rural credit simplification adopted by access to information (a2i).
In the previous fiscal FY19, agricultural and rural credit was disbursed among 3,883,424 persons in a total of which the number of women borrower is 1,601,856 who have received Tk 71.91 as credit.
In the previous year, 2,989,237 small and marginal farmers have received around Tk 163.22 billion from

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