The rescheduling policy for short-term agricultural loans relaxed
The Bangladesh Bank today eased the policy of rescheduling short-term agricultural loans, as it assumed that many farmers would be in dire straits in the coming days following the rise in global prices for agricultural equipment.
Under the new policy, farmers will be able to reschedule their default loans without any down payment and benefit from a six-month grace period.
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The repayment term of the rescheduled loans will be three years, according to a notice from Bangladesh Bank.
Once loans are rescheduled, farmers will be able to obtain new agricultural loans.
Farmers facing certificate cases will also be allowed to enjoy the relaxed facility.
In such a situation, the banks will have to stop the procedural process of the cases or settle those based on an agreement with the farmers.
The price of agricultural equipment has increased in the world market due to the volatile economic situation in the world, which has fueled the value of imported items.
In addition, farmers’ productivity should be adjusted so as to be able to cope with rising prices of agricultural products in the domestic market, the BB said in the notice.
The latest circular will help entrepreneurs in the agricultural sector repay their loans smoothly, the BB said, adding that it will also maintain the stability of credit flow to the agricultural sector.