Trust Bank empowering farmers through finance and agri-lending commitment

Over the past few years, I've witnessed a remarkable transformation in the way farmers approach agricultural finance. Traditionally, loans were mostly taken to cover seasonal inputs like seeds, fertilisers and pesticides for crop cultivation. But today, things are changing. Farmers are looking beyond short-term needs and focusing on long-term investments—such as agricultural machinery, solar-powered irrigation systems and agro-processing units.

This shift reflects a new commercial mindset among farmers. Many no longer see themselves as subsistence growers; they want to boost productivity, improve efficiency and add value to their produce. In fact, in FY2024-25, over 30% of our agricultural loan portfolio was directed toward non-crop-related financing, and this share continues to grow each year.

We've also seen a surge in young, tech-driven agro-entrepreneurs seeking loans. Many are university graduates or even returnees from abroad, armed with innovative, tech-based ideas. They're venturing into areas like hydroponics, poultry automation, climate-smart farming and vertical agriculture. 

These young entrepreneurs come to us not just for funds but for structured financing, market linkages and even guidance on preparing business plans or pitch decks.

To meet their needs, we introduced the Trust-Shufola loan package, which offers flexible repayment terms and digital onboarding. Alongside this, we run financial literacy programmes and capacity-building workshops, which have been hugely popular among this new generation of agripreneurs.

However, we also recognise the challenges smallholder farmers face in accessing loans, especially when they lack formal documentation or land titles. To address this, we've simplified the process by accepting alternative verification methods like digital NIDs, certificates from local authorities or even group-based guarantees. We've also introduced a single-page loan application form in Bengali to make the process simpler.

Expanding our reach has been another priority. We've opened sub-branches in rural areas, strengthened our partnerships with MFIs and NGOs, and leveraged digital platforms such as our Trust Money app and internet banking to make services more accessible. In FY 2024-25 alone, we disbursed over Tk7,990.74 million in agricultural loans to more than 90,000 small and marginal farmers—most of them without needing hard collateral.

Digital banking has been a game-changer in this journey. Farmers are now comfortable using mobile banking platforms like bKash, Rocket, Nagad, our TAP service and the Trust Money app for loan repayments and balance checks. We've integrated features like instant credit scoring, SMS repayment reminders and geo-tagged farm mapping. We're also piloting e-KYC and AI-driven risk assessment tools, which are speeding up loan approvals and lowering default risks.

Climate risk, of course, remains a major concern. We now use crop zoning data to assess location-specific risks before sanctioning loans. For flood-prone or drought-hit areas, we offer differentiated terms and encourage climate-resilient crops and technologies. We've partnered with platforms like Adorsho Pranisheba to provide livestock insurance and are working with Bangladesh Bank refinance schemes to support solar irrigation and low-carbon farming solutions.

Looking ahead, I believe agricultural lending in Bangladesh will evolve rapidly. Financing will become more closely tied to value chains, cooperatives and contract farming, ensuring farmers get better prices and become more creditworthy. I strongly feel there's a need for a digital agri-credit platform that connects farmers directly with buyers, processors and exporters.

The integration of technology—satellite-assisted credit scoring, IoT-based farm monitoring and data-driven lending—will drive this next phase. Banks and financial institutions will need to invest in these innovations to remain relevant.

There was a time when agricultural lending was undervalued compared to urban SMEs or industries. That's no longer the case. With 44.41% of the country's workforce in agriculture and stronger policy support from Bangladesh Bank, agri-lending is now seen as both high-impact and commercially viable. 

Trust Bank itself achieved 112% of its agricultural lending target in FY 2023-24 and has already reached 106% of its FY 2024-25 target ahead of schedule.

For us, empowering farmers isn't just a social responsibility—it's a core business priority. We're committed to building an inclusive, technology-enabled and climate-resilient agricultural financing ecosystem. The future of Bangladesh's economy is deeply rooted in its soil, and at Trust Bank, we are proud to support those who cultivate it.