BRAC Bank has joined Bangladesh Bank’s Tk10,000 crore refinance scheme to provide low-cost financing to farmers and rural entrepreneurs, aiming to expand agricultural lending and support economic activities in rural areas.
The bank recently signed a participation agreement with Bangladesh Bank under the refinance facility, which seeks to channel more funds into agriculture and the rural economy.
The agreement was signed at Bangladesh Bank’s headquarters. AKM Saiduzzaman, Director of the Agriculture Credit Department-2, signed on behalf of Bangladesh Bank, while SM Alomgir Hossain, Head of Cottage, Micro & Small Business (Unit-1), and Tapos Kumar Roy, Head of MFI and Agriculture Finance, signed for BRAC Bank.
Under the scheme, participating banks can provide financing for eligible agricultural and rural economic activities, including crop production, agricultural machinery, fisheries, livestock and other income-generating activities.
BRAC Bank said farmers and eligible rural borrowers will be able to access financing under the scheme at a maximum simple interest rate of 7 per cent.
The initiative is expected to improve access to affordable credit for farmers and rural entrepreneurs, helping boost agricultural production, strengthen food security and create employment opportunities through expanded economic activity.
Bangladesh Bank’s refinance scheme is designed to encourage banks and financial institutions to increase lending to agriculture by providing access to lower-cost funds.
BRAC Bank’s participation in the programme is expected to support the expansion of agricultural and rural financing across Bangladesh, supported by the bank’s branch network and focus on inclusive finance.
The partnership comes as Bangladesh continues to prioritise agricultural credit to support farmers, rural businesses and food production while improving access to formal financing.
