Bangladesh Bank has launched a Tk10,000 crore refinancing scheme to expand agricultural lending, boost rural income-generating activities and support food security by increasing access to low-cost financing for farmers and rural entrepreneurs.
The three-year scheme, effective from 8 June 2026, will provide loans to customers at an interest rate of 8 per cent, covering crop production, agricultural machinery, livestock, fisheries and other rural income-generating activities, according to Bangladesh Bank.
The central bank said the initiative aims to increase agricultural production, create employment opportunities in rural areas and contribute to poverty reduction by supporting economic activities beyond farming.
So far, 42 banks have signed participation agreements with Bangladesh Bank to provide financing under the scheme.
Under the programme, borrowers can receive loans up to Tk30 lakh for crops and agricultural production, Tk20 lakh for agricultural machinery, Tk1 crore for fisheries and livestock, and Tk15 lakh for other rural income-generating activities.
The scheme also includes a collateral-free lending facility for small, marginal and sharecrop farmers. Under this arrangement, farmers can receive up to Tk5 lakh for crop production against only the pledge of their crops through a crop hypothecation arrangement.
Bangladesh Bank said the facility is designed to address financing constraints faced by smaller farmers who often struggle to access formal credit due to a lack of traditional collateral.
The central bank expects the expanded financing window to increase investment in agriculture, raise rural incomes and generate employment, while strengthening Bangladesh’s ability to maintain food security amid rising demand from a growing population.
Agricultural lending has traditionally been a key policy focus for Bangladesh Bank, with rural credit programmes aimed at bringing farmers and small rural businesses into the formal financial system.
Through the refinancing facility, banks will be able to access funds from Bangladesh Bank to provide loans to eligible customers in priority agricultural and rural sectors.
