Farmers to get loans at 4% interest for goat farming
Farmers will be able to obtain loans at only 4% interest for kandal crops and for rearing goats and sheep under the Bangladesh Bank's Tk5,000 crore refinancing scheme.
The Bangladesh Bank formed the refinancing scheme on 17 November 2022 to ensure the country's food security. The period of this scheme has been extended periodically.
In a new circular issued today (27 June), the scheme's duration has been further extended until December this year.
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Additionally, the circular stated that loans will be available for kandal crops– stems and roots of which become swollen due to accumulation of carbohydrates, such as potato- as well as for rearing goats and sheep.
Earlier, a directive from the central bank included the "cow fattening" sector in this scheme. Previously, the scheme was limited to paddy cultivation, fish farming, vegetable, fruit, and flower cultivation, as well as poultry and dairy production under the livestock sector.
The price of several food items has gone up in the global market, which is why the central bank has formed the fund so that farmers can boost production to ensure food security, said the central bank notice.
Under the scheme, farmers will be able to get Tk2 lakh in loans without any collateral.
They will have to repay the loan within 18 months including a grace period of three months.
No defaulter are eligible for the loan.
