ACFID Circular Letter No. 03: Re-fixation of Interest Rate for Refinance Scheme on Solar Energy, Bio-gas and Effluent Treatment Plant Sector

Bangladesh Bank Chief Executive P.O. Box No. 325 Dhaka Bangladesh Ref. No. 03.16.0000.006.01.001.2012-123 Agricultural Credit and Development Finance Department (Policy Branch)

03 Joishtha, 1419 ACFID Circular Letter No.-03 -------------- 17 May, 2012

To Chief Executive/Managing Director All Scheduled Banks and Financial Institutions operating in Bangladesh

Dear Sir,

Regarding the re-fixation of the interest rate for beneficiaries/customers regarding the provision of loan facilities through the use of companies/institutions as agents/intermediaries for the establishment of bio-gas plants under the refinance scheme in the Solar Energy, Bio-gas, and Effluent Treatment Plant (ETP) sectors.

Reference is drawn to your attention to paragraph 2.2.2 of ACFID Circular No. 06 dated 03/08/2009 on the subject cited above.

In order to expand the production and use of bio-gas in the rural areas of the country through integrated cattle farming and the establishment of bio-gas plants, the following decision has been taken regarding the distribution of new loans using companies/institutions as agents/intermediaries:

a) The interest rate for beneficiary customers shall be charged/paid at the prevailing bank rate (currently 5%) + maximum 6%, i.e., a maximum of 11%. b) No type of service charge shall be collected from beneficiary customers.

These instructions shall be implemented immediately.

Kindly acknowledge receipt.

Yours faithfully,

Signed/- (Nirmal Chandra Bhakta) General Manager Phone: 7120947