Dairy farmers will now get loan at 4 percent interest rate instead of 5 percent from Bangladesh Bank’s Tk 2 billion refinancing scheme.

The central bank on Monday announced to lower the interest rate to 4 percent from 5 percent with effect from November 1, said a circular here.

In the circular, the BB asked banks and non-bank financial institutions to disburse loans from the refinancing fund to raise milk production and artificial insemination.

BB created the fund in 2015.

Now the dairy farmers, individually or jointly, will be able to take loan worth Tk 40,000 to buy a young female cow (heifer) and Tk 10,000 to rear it.

A dairy farmer will be able to take maximum Tk 200,000 for buying four young female calved.