BRAC Bank joins Tk10,000 crore agriculture refinance scheme
BRAC Bank has joined Bangladesh Bank's Tk10,000 crore refinance scheme to provide farmers and eligible rural borrowers with financing at a maximum simple interest rate of 7%.
The institutions recently signed a participation agreement at Bangladesh Bank's head office, according to a press release.
Director of the Agriculture Credit Department-2 of Bangladesh Bank, AKM Saiduzzaman, signed the agreement for the central bank.
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Head of Cottage, Micro and Small Business (Unit-1) at BRAC Bank, SM Alomgir Hossain, and Head of MFI and Agriculture Finance, Tapos Kumar Roy, signed on behalf of the bank.
The refinance scheme channels additional funding into the agricultural sector and rural economy.
Through the facility, participating banks can finance eligible agricultural and rural economic activities, helping farmers and rural entrepreneurs obtain funds for productive purposes.
Financing under the scheme will support crop and agricultural production, rural income-generating activities, agricultural machinery, fisheries and livestock in line with Bangladesh Bank's guidelines.
BRAC Bank can provide loans to farmers and other eligible rural borrowers under the scheme at a maximum simple interest rate of 7%, offering access to comparatively affordable financing for agricultural and income-generating activities.
The partnership is expected to support agricultural production, strengthen food security and create employment opportunities through increased economic activity in rural areas.
BRAC Bank said its branch network and focus on inclusive finance would help expand access to agricultural and rural financing across Bangladesh.
