Bangladesh Bank has formed a Tk3,000 crore refinance fund to support the development of an agriculture-based special economic centre in North Bengal, aimed at strengthening production, storage, processing, marketing and export capacity in Rajshahi and Rangpur divisions.
Under a circular issued on 6 July, all scheduled banks will be allowed to participate in the fund by signing agreements with Bangladesh Bank within 45 working days. The facility will remain valid for three years from the date of the circular.
The central bank said North Bengal is a major agricultural production region but its potential remains constrained by weak post-harvest management, inadequate marketing infrastructure, shortage of cold storage, limited processing industries and weak supply chains.
Banks will receive refinance from Bangladesh Bank at 4 per cent interest or profit rate, while the maximum customer rate will be capped at 9 per cent. The same ceiling will apply to Shariah-based financing.
The fund will be distributed across four areas: agriculture production (15 per cent), storage, transport, marketing and infrastructure (35 per cent), agro-based production and processing (35 per cent) and export of agro-based products (15 per cent). Bangladesh Bank may adjust allocations with prior approval.
Loan limits have been set at up to Tk30 lakh for agriculture production, Tk40 crore for storage, transport, marketing and infrastructure, Tk40 crore for agro-processing and Tk15 crore for export-related activities, with banks allowed to adjust limits by up to 20 per cent based on demand.
For agriculture production, loan tenure will be up to 18 months, including a three-month grace period, while other categories will have a maximum tenure of 36 months, including a grace period of three to six months.
Loans under the scheme must be treated as fresh disbursements and cannot be used to adjust existing loans. Defaulting borrowers listed in the Credit Information Bureau will not be eligible.
Banks have been instructed to disburse loans through branches, sub-branches, agent banking and group lending channels, with scope for alternative collateral such as personal, social or group guarantees for women and marginal farmers.
Banks will remain responsible for recovery at the customer level. If a bank fails to repay Bangladesh Bank within the stipulated period, the amount will be recovered from its current account with the central bank.
In case of misuse or charging above the 9 per cent cap, Bangladesh Bank will recover the amount in one instalment with an additional 2 per cent interest or profit.
Eligible agro-based industries include food processing, fruit and vegetable processing, dairy, auto rice mills, fish processing, seed production, jute goods, agricultural machinery, organic fertiliser, honey, tea processing, meat processing and other agriculture-linked industries.
