BRAC Bank to offer northern farmers financing at maximum 7% interest
BRAC Bank has signed a participation agreement with Bangladesh Bank under the central bank's Tk3,000 crore revolving refinance scheme to support agriculture in northern Bangladesh.
According to a press release, farmers in districts under the Rajshahi and Rangpur divisions can access financing under the scheme at a maximum interest rate of 7%.
The scheme aims to increase agricultural production, strengthen agricultural value chains, create employment, and support income-generating activities to realise the region's economic potential.
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It will finance four stages of the agricultural value chain: production and preservation; transportation, marketing and infrastructure; manufacturing and processing of agriculture-based products; and export.
The financing will cover crop production, fisheries, livestock, agricultural machinery, cold-chain facilities, warehouses, food processing, dairy processing, seed production and other agriculture-based industries.
The agreement was signed at a ceremony at Bangladesh Bank's head office, attended by representatives from BRAC Bank and Bangladesh Bank.
Bangladesh Bank was represented by Deputy Governor Dr Md Kabir Ahmed; Executive Director and Spokesperson Arif Hossain Khan; and Sustainable Finance Department Director Chowdhury Liakat Ali.
BRAC Bank Head of SME Business Support Kazi Dilruba Akter and Senior Relationship Manager for MFI and Agriculture Finance Liton Kumar Biswas represented the bank.
BRAC Bank said its participation reflected its focus on inclusive finance and agricultural development, and that it would support farmers, rural entrepreneurs, and agriculture-based businesses across the northern region.
BRAC Bank Additional Managing Director and Head of SME Banking Syed Abdul Momen said, "The agricultural sector, especially our farmers, is the driving force behind the country's economic growth. At BRAC Bank, we have always tried to finance them at a lower cost."
"Bangladesh Bank's refinance scheme will help us strengthen our agri-initiatives, giving farmers easier access to the entire value chain, from financing to selling their final products, and energising the rural economy," he added.
