Short-term farm loans can be rescheduled without down payment

Short-term farm loans can be rescheduled for up to three years without any down payment in certain cases as the central bank has offered the special concession to speed up food production and tame the soaring prices of essential commodities.

In a circular on Wednesday, the Bangladesh Bank said the terms of the master circular on the loan rescheduling and restructuring will not be applicable in such cases.

Short-term farm loans can be rescheduled without any down payment as usual despite the fact that the master circular on rescheduling and restructuring of loans is in place, the circular said. 

At the same time, this directive will remain in force till 31 December of this year, it added.

Earlier, on 19 April, the central bank issued a directive on the rescheduling of short-term farm loans to facilitate agricultural entrepreneurs in replaying loans and maintain normal credit flow in this sector.

According to the guidelines, short-term agricultural loans can be rescheduled for a maximum period of three years including a grace period of six months from the date of rescheduling by relaxing down payment conditions on the basis of banker-customer relationship. 

In some cases, such loans can be rescheduled even without down payment, the guidelines added.