DHAKA, June 1, 2021 (BSS) – Bangladesh Bank (BB) has allowed a two-year rescheduling facility on short-term agricultural loans without a down payment based on the bank-customer relationship.
Besides, new loan facilities will also be available after rescheduling and the customers who have previously rescheduled short-term agricultural loans will get the benefit, as per a BB circular issued today.
The facility will remain in force till 31 March next year.
The circular reads that the production and marketing activities of the agricultural sector like other sectors are being disrupted due to the prevalence of Covid-19. As a result, farmers are not able to repay bank loans regularly.
If agricultural loans default, new financing may be disrupted and agricultural production may be hampered, which is likely to have a negative impact on the overall economic progress of the country.
The circular highlights the fact that short-term agricultural loans are being rescheduled to reduce defaulted loans in the agricultural sector and ensure uninterrupted credit supply.
Agricultural loans can be rescheduled by relaxing the condition of down payment based on the bank-customer relationship. Besides, there are options to reschedule loans without a down payment in special circumstances.
If a loan, whose legal procedures are going on in a case, can be rescheduled by withdrawing or settling the case based on agreement (solenama) with the customer.